One big reason why many businesses fail is because of the lack of market research. Many companies believe that you only need to locate a hot product and promote it on the internet. A business can not succeed far if this methodology is implemented, instead companies should find out the needs of the market before entering to ensure that it is the right product for the market.
Since we started this week with a couple of lists, I’d figured I would keep the trend going. Shawn Lim has listed the top 3 questions a business must ask in doing market research in this post. Enjoy!
1. Is your market profitable? You have to locate a profitable market, if your market is not profitable; people in your market are not willing to spend. And if your market is not willing to spend, you will be having hard times making sales. Therefore, make sure that your market is a profitable market where the people in your market are ready to buy from you. You can find out your market’s profitability by looking at the numbers of advertisers in your market. The more advertisers there are, the more profitable your market will be. .
2. Is your market highly competitive? If you are a beginner in internet marketing, I suggest that you start from a less competitive market. This is because it is always easier to dominate a less competitive market than a highly competitive one. Think about it, if you are still new and you have to compete with the big boys in the market, do you think you will have advantage over them? That is why it is always a wise choice to go for a less competitive market. Of course there are some exceptions for this, but do you think you are capable of doing this?
3. Is your market niche enough? In fact, niche marketing is the only marketing that works wonder in internet marketing. You have to focus your market very specifically in order to build much targeted prospects. Just like if you are targeting sport market, which sport are you targeting? Is it tennis? And even if it is tennis, you should still further focus your market, like woman’s tennis and so on.
What are some questions your company asks before entering a new market?