People have good ideas at all times, and some of them have already put theirs in practice. But, even if we have a big differentiation from other products of the same line, we must scale out the market we are in, in order to make a more effective strategy. Also, it might bring interesting insights on your product’s demand.
Here in Wizzora, we make similar researches, to better know how many people we are planning to reach and what are the most effective ways to reach them.
There are many big companies specialized in searching and analysing this kind of data, but you can guess the price is not affordable for people with small business or that only have one unstarted idea. Fortunately, there are some methods that require a little (or none) money to do this job - of course, it doesn’t have the same precision and quality, but already is enough to help you avoid a lot of mistakes and improve on points you didn’t know were basic for your business.
Before you continue reading this post, we recommend you read a previous post about segmentation here, which can be a good first step before beginning your market assessment.
Now that you have a good notion about what is the public you are aiming at, we show you a few steps you can follow to better dimension your target market.
1. Search the web
The internet has uncountable information about everything. Of course, you might not find precise numbers about specific subjects you might be interested in, but you can surely have a much better vision of what you’re aiming at.
Some good sources are government researches (they usually have interesting statistics), commerce chambers and associations and university studies. Remember these are just some of the most usually trustable sources, you still might find other ones that are compatible with the reality.
2.Try to answer basic questions
You have to give your research a north. If you are able to answer some trivial questions about your target market, then you are way more prepared to join it successfully.
This questions can be:
-How big is the overall market today?
-How rapidly is it growing?
-What are the most interesting segments?
If you are, for example, thinking about selling a new brand of beer, you could ask yourself:
-How big is the drinking market today?
-How rapidly is it growing?
-Are the homemade beers more desirable than the industrial ones?
3. Be critical
Quite often you will find divergent information, but it’s up to you to think a little about it and see what makes more sense.
Also, you need to make links. For example, if you are trying to put your notebook business out, don’t just look for data about notebook selling. Look also for increases in schooling, and other things that can be influential in your business.
4. Look from both sides
You wish to be a supplier, but both sides matter. You have to know what is the situation of supply for your product and its demand.
If you just look for the demand, you might find that it is huge and that it is increasing fastly, but maybe the supply for it is growing two times faster and that is not a good moment to join that specific market.
5. Hear what people have to say
Your research is important to show you the overall situation through statistics and studies. However, you need living people to buy your product, not statistics.
You have many personal contacts that are potential consumers of your future product. Their opinion can be of great value for you. When showing it to 10 people, you can find out that it was actually only interesting for you, or that it is even more revolutionary than you had imagined.
One tip here is not to tell that the idea is yours. People who are close to you tend to not want to make you feel bad, and might be too partial when giving their opinion, distorting the reality.
Now you have some tools to make a better first research, so don’t waste any more time and give it a try!
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