How Market Research can Improve Your Profits & Reduce Costs

Written by Marie-Claire Ross


In today's highly competitive world, business success depends onrepparttar ability to make well-informed, knowledgeable and strategic decisions. Entrepreneurs and business managers need reliable information to develop strategies to market new and existing products and services that will be valued by customers.

Market research is essential to fully understanding your consumers and competitors. To perform successfully, business owners and managers must know their markets, customer attitudes and needs, competitors and their competitive position. Inadequate knowledge about consumers puts a company at a distinct competitive disadvantage.

One ofrepparttar 121625 harsh truths in business is that few people have unfailing intuition or reliable ‘gut feelings’. Subjective thinking can berepparttar 121626 downfall of many entrepreneurs. Fortunately, you can use market research to verify your ‘gut feelings’ which leads to more accurate decision-making.

Spending money or time on professional market research is rarely wasted because it can meanrepparttar 121627 difference between a successful venture or avoidable failure.

In fact, market research can actually save you money and identify opportunities to improve profits.

Listed below are four ways market research can be used to improve your bottom line and eliminate costly mistakes.

1. Determine your Target Market

Did you know that last year, 7115 patents were granted by Intellectual Property (IP) Australia? It is estimated that less than 50 of those patents will be successful. Whyrepparttar 121628 poor success rate? Sadly, whilerepparttar 121629 creators hadrepparttar 121630 talent to inventrepparttar 121631 items, they lackedrepparttar 121632 ability to research whether there was a market for their ‘baby’.

One ofrepparttar 121633 most prevalent traps in developing a new product or service is assuming it will fill a market need. Strangely enough, customers are finicky creatures and want products that suit them perfectly. Creating a product or service that you think people will want can spell disaster.

Before launching a new product or service, it is essential to know:

1. Who has a real need forrepparttar 121634 product or service I intend to sell? 2. How many potential consumers are out there? 3. Where are my potential customers? 4. How much are my customers willing to spend on my product or service? 5. Does my product or service save my customer money or make them substantial amounts of money? 6. Why will they buy my product or service?

By identifying your target market, you will be able to evaluaterepparttar 121635 viability of your new product and service and understandrepparttar 121636 enhancements needed in order to increase sales.

Target market definitions also feed intorepparttar 121637 development of your promotional and sales strategy. By understanding your market, you are less likely to waste your advertising dollars on promoting torepparttar 121638 wrong demographic. Further, by understanding your market you will know which benefits are conducive to sales, which will facilitate more effective selling strategies.

Once your target market is defined, further market segmentation can be undertaken which isrepparttar 121639 foundation for marketing and advertising strategies.

Another common business trap is to have previously identified your market and assumed it was set in stone. The chances are your market will keep changing due to emerging industries, new technology or even changes in company decision-makers. Redefining and reviewing your market should be undertaken regularly.

By fully understanding your target audience you will haverepparttar 121640 ability to develop a relationship with it. This relationship can bring mutual and substantial benefits to both parties. From your knowledge, you will be more capable of foreseeing market trends and identifying market opportunities. This will enable you to provide further products and services to fill market gaps.

Defining your target market can be achieved by undertaking either primary or secondary research (or both).

Primary research (or original sources) involves gathering actual data among those using or likely to use your product or service. Questionnaires, in-depth interviews, focus groups and observation are all used to uncover information. It usually involves commissioning a market research company or consultant to conduct research. Secondary research (or printed sources) involves data collected and produced by others such as trade associations, publications orrepparttar 121641 Government (eg: census data). This method is less time consuming and more cost effective. However,repparttar 121642 data may not fit your product or service accurately enough, resulting in misleading analysis and bias. In untapped or niche markets, all ofrepparttar 121643 secondary data inrepparttar 121644 world will be of no benefit to you.

Know your Customer Inside-Out

Research has found that it is five times more expensive to win a new customer, than keep an old customer. Typically, repeat and referral business accounts for 60-90% of revenues.

"How to Market Your Free Articles with No Money"

Written by David McKenzie


Feel free to use this article in your ezine and for posting at your website. Please includerepparttar resource box atrepparttar 121624 end ofrepparttar 121625 article. Thankyou David McKenzie "How to Market Your Free Articles with No Money"

by David McKenzie

What? You mean I have written these great, informative, valuable articles and now I have to market them! Surely if they are free, people will just come and read them.

Ah,repparttar 121626 internet.

Thou shalt market, market and market some more onrepparttar 121627 internet.

It does not matter if you are selling a product or service or giving your information away for free. You still have to market your stuff.

Otherwise no one will find you to read your excellent content.

The following 2 free marketing techniques will help increase repparttar 121628 readership of your articles.

1. Newsgroups.

With google groups, newsgroups are suddenly easier to use and easier to post to. Google groups are basically newsgroups in html form.

OK. Here is a quick action plan for getting your article read by people on newsgroups.

Go to http://groups.google.com and search for groups related to your topic. Either search usingrepparttar 121629 search box or manually scrolling through newsgroups. If you are familiar with newsgroups there may already be some groups you know you can post to.

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