Starting up a business in a new (foreign) market is very expensive…
Still most entrepreneurs don’t focus enough. Focus is key…
These 5 benefits will be yours if you do the right market research
Time and money are two of the most scarce resources. Knowing your target market allows you to choose the media, distribution, and adequate promotion to market your product effectively in that market (see also our article: “7 Steps to kickstart your market research”). Don’t save on market research. You can save a lot of money.
Read this article: “Marketing: Save Time, Money and Resource on Market Research” by Brandwatch https://www.brandwatch.com/2015/03/marketing-save-time-money-and-resource-on-market-research/
Better segmented target market
The better you select a particular segment of your target market, the better get insights in criteria such as demographic, socioeconomic, certain cultural characteristics and specific consumption. Not only are you able to define the best suitable and attractive target market, you are also creating a foundation for your marketing and communication plan.
Read this article: “8 Ways to Do Big-Time Marketing Without Spending a Fortune” by Entrepreneur.com http://www.entrepreneur.com/article/248780
Knowing your target market will allow you to understand the exact demand and supply and direct the marketing efforts to meet the specific needs of that segment.
Read this article: “How to Make Sure Your Product Will Be Successful — Before You Launch” published on Medium https://medium.com/better-humans/how-to-make-sure-your-product-will-be-successful-before-you-launch-eea394ad2f00#.7wnfcdq6i
Generation of new product ideas
Defining your target market, using a feedback loop and looking at user experience will help you to define and refine a specific targeted product range. And it’s offers the right insights to generate new products which even suits better the customer’s needs which will increase your business performance.
Read this article: “How To Evaluate Market Demand For Your New Product Idea” by Shopify https://www.shopify.com/blog/13444793-how-to-evaluate-market-demand-for-your-new-product-idea
Clearly determine the potential demand for your product
Are people interested in the new product? Or are they too much loyal to switch brands? Knowing the right data-points of your target market will give you a better idea of the potential and realistic demand for your product. Besides market research you can use profiles of your potential customers (so called “personas”) and visit stores of your competitors, monitor website traffic competitors, etc.
Read this article: “How to Forecast Sales, Profits Before You Have Hard Data” by Tim Berry, founder of Palo Alto Sofware and bplans.com http://smallbusiness.com/start/how-to-forecast-sales-profits-before-you-start-a-business-or-launch-a-product/
There are many more benefits that come with knowing your target market by doing a good (market) research. We hope these tips will be useful for your business. Don’t forget to implement these tips next time you have an idea for setting up business abroad.
And these tips may also be helpful if you need a change on how you sell/distribute/promote your product or service. The benefits that comes by identifying your target market in the best detailled way is unquantifiable.
Do you have other ideas that you have put in place to define your target market?
We want to know! Please drop an email so we can improve these and other checklists to support other businesses better!