“Research is creating new knowledge.” – Neil Armstrong
Market research reduces uncertainties. It discovers what consumers want. That SIMPLE.
You may be asking yourself, “How can market research help my business?”
Here’s the answer:
Market Research Gives You Certainty
With it, you can answer these questions:
- Who is my ideal customer?
- What do they think about my product?
- What do they think about my brand?
- How much are they willing to pay?
With this valuable data, you can move forward confidently.
Let’s break the above 4 points down.
Who is my ideal customer?
Answering this question is one of the biggest challenges businesses face.
Without proper research, the process of actually “defining” the ideal customer can be:
Many entrepreneurs start out thinking they “already know” who their ideal customer is. So, they skip this step. That can be a costly mistake.
Conducting research gives you additional insight from the viewpoint of the consumer. It not only reveals who would be most interested in your products and services. But, it shows you why.
That is much more reliable than going off on your own “opinions”.
Meet Matthew and his wife, Jen.
They’re a newlywed couple in their 30s. Both are well educated and driven.
Like many young people, they dreamt of having their own business. Jen had been working as an esthetician for five years. So, she was familiar with the skincare market. Matthew’s background was in organic farming.
Sounds like an odd combination for a business, right?
Well, it was perfect. With their combined skills and experience, Matthew and Jen wanted to:
Create a successful organic skincare product using natural herbs and botanicals.
Even with their backgrounds and experience, they still knew they needed to find out….
What do people really think about our product?
They created the base organic moisturizer. But, weren’t sure what scent would be most appealing to customers. So, they mixed four different samples:
- Lavender infused moisturizer
- Green tea infused moisturizer
- Lemongrass infused moisturizer
- Scent free moisturizer
Then, they had face-to-face market research done. That consisted of lots of product testing and placements. Both Matthew and Jen were sure #1 (Lavender) would be the most popular.
They were completely surprised when #4 was the stand-out winner.
They discovered that:
- Women did not want a scented product on their face and
- There were no other organic scent free products like theirs on the market.
This research saved them time and money.
Another crucial point in market research is finding out…
What do people think about my brand?
First of all, what is a brand?
It’s what sets you and your business apart from other companies and competitors. It is the identity of your business.
Once you know:
- Who your ideal customer is and
- What they think about your product
Then you need to conduct brand research.
Think about Nike. You probably pictured the “swish” logo, right? That’s their brand. Other good examples are McDonald’s and Coca Cola.
Using the example above of Matthew and Jen, their brand would need to represent:
- Scent-free &
This research can be done both face-to-face and online. The simple steps would be:
- Create 4 to 5 mock-ups of brand logos and packaging ideas.
- Ask the target market which is the most appealing and memorable.
Now for the burning question, most entrepreneurs want to know…
How much are people willing to pay for my product?
Let’s use the example of Matthew and Jen again.
From careful research, they now know:
- Who their ideal customer is,
- The unscented moisturizer is the clear winner, and
- Which brand identity is most appealing.
They can now create packaged samples of their product and discover what would be the best price point to go with, at which channel. A face-to-face approach would probably work best, depending on what sort of specifics this next step of research would be.
Research is a Wise Investment
By now you may be realizing how important all this research is. Taking the time to have your market professionally studied will give you a better chance of success.
Market research increases certainty. Don’t follow the bad example of many entrepreneurs who skip this vital step. Cutting corners in this area is deadly.
If you like to be successful like Matthew and Jen, – contact us today for a free 30-minute consultation.