Market research is the foundation of any successful business, but it’s particularly important for startups and small businesses. By understanding their target market, competitors and industry trends, organizations can make informed decisions, reduce risks and increase their chances of success.
Students in an advanced business program gain necessary market research knowledge they can apply to small and new businesses. Youngstown State University (YSU) offers an online Master of Business Administration (MBA) – General program that provides courses on market research, like the Marketing Strategy course.
The Value of Market Research for Startups
Market research is a systematic process of gathering, recording and analyzing data about consumers, competitors and the market. It involves certain key components:
- Market segmentation: dividing the market into separate groups based on the same characteristics
- Customer analysis: understanding customer needs, preferences and behaviors
- Competitor analysis: evaluating the strengths and weaknesses of competitors
- Industry analysis: evaluating the overall market, potential for growth and current developments
- Data collection: gathering both primary and secondary data through surveys, interviews, focus groups and other methods
- Data analysis: interpreting collected data to identify patterns
Startups receive numerous benefits from market research. The following are just some examples of how startups use market research to gain perspective, refine ideas and inform behaviors and decision-making:
- Identifying a market gap: discovering unmet customer needs or underserved market segments
- Validating a business idea: confirming the viability of a product or service
- Understanding the target audience: gaining deep insights into customer demographics, psychographics and behaviors
- Developing a strong value proposition: crafting an interesting message that resonates with customers
- Making informed decisions: using data to guide product development, pricing, marketing and sales strategies
- Reducing risk: mitigating the changes of failure by identifying potential challenges early on
Steps to Conducting Market Research
Salesforce, a technology company that helps businesses manage customer relationships, outlines a practical approach to market research for startups and small businesses:
- Define research objectives: Clearly define what will be learned from the research.
- Identify target audience: Determine who you want to gather information about.
- Choose research methods: Select appropriate methods based on objectives and resources.
- Collect data: Gather information through surveys, interviews, focus groups or secondary research.
- Analyze data: Organize and interpret the collected data to identify trends and patterns.
- Draw conclusions: Summarize key findings and make recommendations based on the research.
- Take action: Implement changes to the business strategy based on the research information.
When to Use Market Research
Xero, a company that offers online accounting software designed specifically for small businesses, suggests that market research should be an ongoing process for startups and small businesses. Market research is particularly valuable at the following stages:
- Business planning: to develop a solid foundation for the business
- Product development: to ensure the product meets customer needs and preferences
- Marketing and sales: to refine the messaging and target the ideal customers
- Customer satisfaction: to measure customer satisfaction and identify areas for improvement
- Competitive analysis: to stay ahead of competitors and identify opportunities
By investing time and resources in market research, startups and small businesses can significantly improve their chances of success and financial profit. The information gained from this process can help them make important decisions, allocate resources effectively and build strong relationships with their customers.
Learn Market Research Fundamentals in YSU’s General MBA Online Program
YSU’s online MBA – General program provides students with the skills to conduct market research and develop effective marketing strategies as business leaders. Courses emphasize how to create marketing plans by identifying specific customer groups, choosing the best ones to target and defining the brand’s image. These plans are then supported by carefully coordinating product features, pricing, distribution and promotional efforts. By incorporating market research into their business operations, startups and small businesses can gain a competitive edge and position themselves for success.
Learn more about YSU’s online Master of Business Administration – General program.
