Know Your Market
A crucial element of business success is "knowing your market." It is important to clearly define your target group(s) by characteristics such as age, gender, economic status, lifestyle, geography, and other parameters. This will help in choosing the most effective marketing strategy for your purposes.
Furthermore, marketing research can help you assess competition and understand your industry. This knowledge is vital as you make decisions and forcasts for the future.
Information can come from existing sources (secondary research) or you may have to gather it yourself (primary research). Most businesses need both to effectively develop a marketing strategy.
Doing research can cost time and money so work it into your budget. This is one of the keys to a successful business.
Primary Research
You need to know where your customers live, how they learned about your business, whether they are satisfied with the product selection, prices, store appearance, etc. The best way to answer these questions is to ask. Surveying is one way to stay in touch with your customers.
You also need to know the strengths and weaknesses of the competition. This information can be obtained by shopping in and observing their businesses directly, buying and evaluating their products or services, and asking customers their impressions.
Secondary Research
There are many resources available to provide demographic and geographic characteristics of your customers or trends in your industry. You can find this information at the library or on the Internet. There are market research professionals who will do the work or you can do it yourself.
Publicly held companies are required by law to file reports with the Securities and Exchange Commission. Articles are often available in the media. Credit reports are available from some private companies.
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