42% of businesses fail from useless services and products. They might not actually be useless versus not knowing who to market to. How can you expect to succeed with what you do if you are targeting the wrong market or don’t understand it at all?
This is why professionals ask, “What is the first step to doing industry research?” Market research should come before you start creating a business plan. This is because you can’t draft a relevant plan if you don’t know where you should start.
You also wouldn’t have any data or usable market insights to help form sound business decisions without research. Businesses that overlook market research and targeted marketing often fail and this happens quickly leaving founders with the issue of losses in capital, a damaged brand, and a broken business.
To avoid this, keep reading to learn how market research actually starts.
Industry Research Matters and Here’s Why
Market research is used to elevate business ideas based on current economic trends. The concept of doing market research before anything else is to take what is happening in the economy and combining it with compiled research on consumer behavior. The point of this is to pinpoint what consumers are actively looking for as well as unsolved problems in the market.
This is where you will get a good view of your market entry point and how best to proceed as you coordinate marketing campaigns, branding, and product or service lines. Data insights give you a clear view of how you can tailor your products or services to solve real industry issues and it helps to reduce risks as you move forward with your business.
It’s also important to note that a business doesn’t have to be new to benefit from research based on relevant industry sectors. Existing businesses can use market research strategies to reposition their company in their industry and to capitalize on economic trends given that they shift over time.
Why You Can’t Afford to Skip It
Market insights help business leaders to learn who is going to use and benefit from their products or services. It will give you detailed information such as the income level of these potential customers or clients. The report could even include their ages and they’re geo-location.
Depending on the scope of research, you could also find out, what they are looking for the most online or in their areas. Their marital status and what they could benefit from are also usable insights you would have access to.
A market research report is your window into finding out how to place your business in the eyes of consumers. The point is to find those that will actually use what you have to offer. If you skip this step in the process of forming or rebranding your business, you are likely to lose the investments you put into it.
Additionally, you have to also consider that you won’t uncover potential market entrances or business opportunities and that’s because you won’t know they exist without research.
What Is the First Step to Doing Industry Research?
Business owners, managers, and marketers often ask, “What is the first step to doing industry research?” The answer is…defining the problem or question that you want a solution or answer to. This might sound cliche, but you can’t start on something before you know what you should be doing.
After you’ve identified the problem you want to solve the actual research process will follow. With this first step though, you don’t want to only think about what your business needs ‘right now’ or what you want to know at present. You should be thinking far ahead whether that’s five or 10 years down the line.
This is another benefit of forming market research as well. This is because these reports will often include sections dedicated to forecasting and projections based on the data you gather. Forecasts will help you form better decisions as you proceed.
Learning to Form ‘Relevant’ Market Research
After you’ve made it past the first step, you can start developing your research plan. Now, you know what to plan your research around to make it useful. Market research can often be combined into five primary steps.
- Identifying the problem or question you have
- Coordinating a market research plan to address that problem or question
- Collecting relevant data insights and useful information
- Cleaning and analyzing the compiled data and utilizing data visualizations for decision-making
- Turning your gathered data into actionable steps
The first element of industry research is goal-setting. However, those goals aren’t likely to be reached if the research you conduct isn’t relevant to your needs. To make finding relevant data more simple, customize your research tactics.
You can do this by conducting qualitative interviews or making use of focus groups. Utilize public data, feature surveys on your website, and use competitive analysis as well. To streamline the process take advantage of the marketing research linked here.
Your First Steps Determine the Success of Your Business
Business owners are asking, “What is the first step to doing industry research?”. To get started, you have to know what you’re looking for. After you’ve identified your needs, your research efforts should be tailored to that.
Once you have the information that could skyrocket your business, you have to take action and apply it to your business and marketing models. What you do or what you sell can be successful if you know how to reach the right people, but that doesn’t happen without the right insights. To learn more about advancing your business efforts, read more of our helpful content.