Nothing is worse than companies reaching their target market by depending more on chance than on facts. Due to this, all prosperous businesses invest a lot of money in various kinds of market research before releasing or improving any product.
You must learn your potential, determine the market prospects, and thoroughly analyze your target market if you want to join their ranks. Possess information, and you possess the world!
Businesses frequently utilize the SWOT Analysis to identify threats and opportunities to gain a more comprehensive understanding of their target market and the market as a whole. To obtain proper market research results, many businesses employ businesses that provide digital transformation solutions.
Steps to Identify Threats & Opportunities with Market Research1. Recognize your existing clientele
It makes no difference if the company idea is fresh or previously well-liked by customers. Finding market possibilities is a crucial component of growth and development in both situations.
The main difference is that because current consumers have firsthand knowledge of your company's activities, it is considerably simpler to gather insightful information about the target product from them. Using current internet tools and software, you may quickly extract the required data. Transformhub, offering the top digital transformation services in Singapore takes complete accountability to cater to your business requirements.2. Look through your statistics
You already have statistical data you can examine and evaluate if you employ even a basic set of promotional tools and maintain a database of existing consumers. You may find this type of information from:
- Google Analytics to see user demographics, user location, and other aspects of website traffic
- Social Network Analytics for Facebook Page Insights, Twitter Analytics, etc.
- Analyze client interests and preferences with YouTube Analytics
- Discover open/bounce rates, which texts and links get the most attention, and more with the help of MailChimp data.
Understanding your external clients begins with taking the first and simplest step, which is to do this. But it's not the only one, for sure.3. Perform A/B testing
Market research techniques enable us to understand the wider picture and pinpoint weak points after analyzing the information. A/B testing can help you figure out how to boost your company's marketing while removing these weak points.
It provides the chance to figure out whether your users will accept the changes before you implement them.4. Keep track of the opportunities and gaps
It is essential to keep track of all your findings, inspirations, and chances. You may brainstorm, mind map, and talk about potential answers and tactics with your team once you've written down every one of them.
Being able to carry out market research with current consumers has several benefits since you already have insightful knowledge that can be put to use. The procedure is a little tricky and takes longer when it comes to new products since you first need to gather the information necessary to have a clear grasp of your target consumer.5. Gathering market data
The two main types of research conducted today are online studies and fieldwork. Because online tools are resource- and cost-efficient while yet producing detailed results, most organizations offering digital transformation solutions choose to employ them.
But each step should be taken one at a time. Therefore, you need to first define your market before rushing to investigate the greatest research tools and waste marketing efforts.6. Recognize your competitors
Another "instrument" whose merits being distinct from all other options for market research is this one. If you don't have your customer base, you may research a competitor and get valuable information.
Additionally, the knowledge you gain will help you mold the identity of your product so that it stands out from competing offerings. It's crucial to note any market opportunities you come across or reach when gathering market data so that you don't lose the thread.7. Identify your target market
According to the 2017 High Growth Study, 34% of high-growth businesses analyze their target market at least quarterly. They have the chance to increase their revenue and widen their areas of influence as a result.
These statistics demonstrate that your customers are the most important aspect of your business and that the more you understand them, the better are your chances of succeeding.8. Perform SEO research and trend identification
Finding the most popular keywords and phrases that your prospective or target audience uses while searching for information is a prerequisite for conducting SEO research. In this approach, it is possible to identify the drawbacks or shortcomings of a certain product.
You'll probably be able to see the users' primary question formation and language use as well. By putting this knowledge into practice, you can communicate effectively with your clients.
What Is Market Potential?
The market potential is a forecast of the total demand for a certain good at a specific moment. It is always decided if it is worth putting time and money into the concept at all before the product launch.
For instance, a new laptop's market potential is $600 000 in annual profit (sales value), or 100,000 units sold per year (sales volume).
Market research and market potential are closely related.
The findings of this study—in particular, the information below—are used to determine the overall demand for a certain good.
- Market size: If your product is new, try to estimate the number of possible buyers by counting the sales of your rivals. The figures you receive will be a rough estimate of the market size. You will get your number if you are an established participant in the industry.
- Market expansion: Check the numbers and information from the last five to ten years in the chosen business to determine if the market is expanding or contracting.
- Competition: To determine the sort of launch you should use, the price you should set for the product, and how much money will be needed for advertising, you must determine if the level of competition is low or high.
- Target audience: One of the most crucial factors in all product development phases, especially when you need to pinpoint market potential, is the target audience. You may obtain a general notion of how frequently your goods will be purchased or how much they are prepared to pay for your services by researching your target clients.
Remember that it is unstable since several factors, such as economic developments, can affect consumer purchasing patterns or entirely alter market trends. Be choosy and only use information that is pertinent to your main purpose, which you will have already decided upon.
To get the most out of market research, it's important to draw attention to all of the market opportunities that emerge throughout the process.
How Are Company’s Threats & Opportunities Defined
An external issue that you have no control over and that can harm your business is a danger to your organization. A danger is distinct from a vulnerability, which is an aspect of your business.
A crucial first step in lowering the danger of risks to your company is identifying them, or at the very least, managing them so that they won't destroy them. It all comes down to being organized and taking preventative measures to lessen the harm.
It might be challenging to come up with a list of risks since you just don't know what you don't know. Although they might not come to mind as quickly as your advantages, most external dangers fall into a few distinct groups.
To come up with potential dangers and possibilities for your company, use the following categories:
- Trends in the economy: Consider how the economy affects your company
- Market trends: Take into consideration expanding or contracting market trends
- Sources of income: Gifts, grants, or other varying sources that are beyond your control when thinking about funding adjustments
- Political support: Assess the impact of political support changing
- Government restrictions: Consider any new rules that might harm your company
- The shift in target audience: Your target market may be aging, contracting, or moving
What to Ask to Identify Threats & Opportunities
These categories ought to get your creative juices flowing. Threats from outside should be considered by thinking through each area. Simply add any vulnerabilities or internal difficulties you find to your SWOT matrix as you go.
To encourage you to consider potential dangers seriously, we've developed a series of questions that correspond with the categories above.
- Is there a recession in your region's economy?
- Will the state of the economy affect your consumers' capacity to buy?
- What economic changes are taking place that might affect your target audience?
- How is the market evolving?
- What fresh developments could harm your business?
- Are you being forced out of your market by increased competition?
Changes in funding or cash flow
- Do you anticipate any adjustments to your financial flow that may be detrimental? Payment delays, seasonal problems, etc.
- Will your company suffer from changes in funding? How, if so?
- Do you anticipate fewer grants or donations this year?
- Will there be a change in political support this year, in your opinion?
- Is there a need to worry about political changes?
- What potential losses may political changes entail for your business?
- Are there any restrictions that might increase costs or harm production that are changing?
- What harm may new restrictions cause?
Adapting to new connections
- Changes in any external business relationships?
- Are there any issues with vendors or partners?
Changing target audience
- What is the change in your demographic?
- What dangers stem from these shifting demographics?
- Is your audience evolving in a way you're unable to adapt to?
Tips to Find Threats & Opportunities
- Research the market: To find out how your target audience is changing; you must undertake market research while you consider potential risks and possibilities.
- List any danger you can imagine: Make a note of any threats that come to mind. It's still important to be aware of that risk even if its effects won't be noticed right away.
- Be innovative: Find an opportunity where your rivals don't need talent and imagination. When you are generating a list of potential prospects, don't be scared to go outside the box.
- Maintain a handy list of opportunities: We'll go through every component of your SWOT matrix again so you can create future practical tactics.
- There are threats, but don't become alarmed: Although listing risks could make you feel anxious, keep in mind that all firms face risks. Knowing about risks is preferable to turning a blind eye.
TransformHub for Market Research Services
Businesses that collaborate with TransformHub benefit from our global research services, which deliver practical research solutions across various sectors. We provide organizations with the information they require the most through thorough data gathering, analysis, and the extraction of account-based marketing intelligence from non-public sources.
To assess how your brand compares to that of your company's international competitors, our research team compiles a list of their goods, services, brands, and consumer bases.
We have the capabilities to gather information from many sources and analyze problems impacting your company's important international marketplaces so you may cut expenses and build brand recognition in the right industries.
In addition to providing tailored suggestions and reports based on the acquired data, our skilled researchers may investigate the most important market issues for your company.
Get in touch with us right now, to start your market research for improved sales and brand reputation.
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