Clear understanding of basic marketing concepts is critical to small business success
We will start from the assumption that we have defined our market and that it is already divided into consumer groups.
In this article we will advance what corresponds to Knowing the Market. The objective is that through these concepts you can describe what a market study is, what it is for, when and how it is done.
Let's start by pointing out that knowledge of the market must be a permanent task of the entrepreneur, it is not a question of an exercise and vast. That is why the Market Research has been created, which will provide us with information to better understand our market. Entrepreneurs who carry out their actions based on the information they obtain through this continuous practice are more competitive, since they are satisfied with their clients and, in fact, make more consumers interested in their product. This way they keep their marketing problems to a minimum.
In the field of management, market research is the basis for planning and making decisions regarding market strategies.
On some occasions we are unable to explain the reactions of our market (variable prices of raw materials, fashion trends, low demand, etc.), this is due to lack of information. This affects us directly, since we will not know how to solve our marketing problems to make (sell) our products.
In short, the set of activities that are carried out to obtain and analyze the information related to satisfying the needs of consumers is called Market Research. Investigating a market is discovering the best way to satisfy the needs of consumers.
If our object of work is ultimately people, then they will give us the information we want. This information is enclosed in: who, what, how, how, where and why do customers buy ?
With the information obtained, the entrepreneur will be able to decide on the characteristics of the products, quantity, quality, prices, where to locate them, how to market them, the monetary resources that they need to invest in the market, etc.
Beware: dismiss the idea that market research is complicated. You do not need to be a specialist, however you do need to know some things and be very applied in practice.
Now is the time to Plan. To prepare a research plan follow these steps:
1. First Define the Reason. Take a notepad and ask yourself. To make what strategic marketing decision do you need to do the research? Be specific and precise in your response. Remember the previous paragraphs.
2. Determine the Data you need to obtain with reference to the reason.
3. Define the Sites Where You Will Collect Information. Competition, neighborhoods, individuals, etc.
4. Decide the Time and Resources You Have. To carry out the investigation.
Now it is time to Collect the Information. For this there are numerous channels, you decide which is the most suitable for you. Some examples are the following:
Via telephone: start by making quotes at competing factories, ask about prices, qualities, payment methods, product characteristics, etc. Most importantly, do not forget to write down all the data they provide you.
Visit the trade (chain stores, fairs, showcases, etc.) there you will find the products exhibited and you will be able to appreciate their qualities up close. Be thorough and write everything down.
Other entrepreneurs (union meetings, associations and sector entities, etc.): they will be able to help you solve many doubts.
Final consumer. It is the most important, they are your customers and you must satisfy them. Watch them very carefully.
Industry publications (commercial directories, specialized bulletins, etc.). Read about your business in magazines that are in your industry. Find out what happens inside it.
Government and private entities (economic, sector studies, undergraduate theses on diagnoses, etc.). Here you can find more general information. Extract what is useful to you, it is not difficult to access them.
As well as the previous ones, there may be others that fit your needs.
Good quality in obtaining information is a guarantee in the development of any successful business.
If we have already obtained the necessary data, it is time to Organize the Information, this consists of classifying, selecting, grouping, consolidating and ordering the collected data.
For this, the tables where you can summarize and appreciate it as a whole are very useful. Consider the reason and design an appropriate painting.
Understand the Information available to you. If not, ask for help, investigate, compare it to previous records if you have them. This is essential to be able to draw good conclusions.
Finally, let's analyze the information in the tables. Go over them insistently, looking for explanations and cross the statistics with each other and confront them with your previous experience. You may find it very helpful to discuss the information with other people and companies to expand and deepen your analysis.
All of this work ends here, you are ready to Decide what to do about your initial concern. Write down the advantages and disadvantages of each possible strategy and its consequences.
For this moment you can already plan your production according to the months of greatest demand or select the quality that consumers demand. You may even conclude that it is better to leave the business or that it is the right time to expand your market.
As you can see, it is a simple methodology that a micro-company can assume without major difficulty. However, it is recommended that when you encounter something unexpected that you cannot address, ask for help because if it is not possible, you should take the wrong path and not only lose the information, but reach a harmful conclusion for your company. This help can be found at universities, with marketing or management students. They are very receptive to such proposals. It also has entities dedicated to supporting the microentrepreneur. Go to them. It will only bring you advantages over your competition and real benefits for you and your company.
