The market is a world of humans (people) who are ready to build an arrangement of purchase and sale of various demanding commodities, that allows oneself to buy goods and services whereas another one is ready to sell it at a cost of retailer or wholesaler between a various form of parties.
The market structure for those people who start up their idea; it takes the keys to examine the various forms of a market system before entering the veritable industry. They must understand the system they want to choose, from where they will buy the products or to whom bought it will sell products at an accurate time; to enter or take a departure from that respective industry.
A most essential part is to question themselves that “How to do a market analysis for startup“. Here are some essential steps for you to follow.
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Conduct your Self-Research
The first and the most common topic is to discuss the raw ideas and thought comes in your mind. The area of the self-opinionated mind where one should collect all their thought and sit with an open-minded attitude to convey a plan. The Self-Research conduct is not only about hunting about innovative style but it also allows us to establish the ability to intake various sources in our idea.
Before starting market analysis for startup or business we must consider SWOT Analysis (Strength, Weakness, Opportunities, Threats) about our products or surrounding to build the business. If you think about the size of the market, the form of market, how product relies on the market; where multiple sellers exist altogether is a compulsory topic to analyze.
Market indulges with different forms such as -:
Perfect Competition
It acts as an illusion of that perfect market which has a large and multiple numbers of buyers and sellers with homogenous production of goods & services in zero advertising and low transportation. Customers allow themselves to hunt on a unique aspect of products as they have much knowledge of the market that yields a profit to firms.
Monopoly
It defines the market that originated from only a single producer of goods and services with different multiple set of buyers, who are ready to buy this unique product. It says “Single seller with multiple buyers“; as we associate the product only to one seller, there is no competition in the market and wholesale profit is gained by that monopoly seller.
Oligopoly
This act only defines an area of a small firm that includes a brief set of business inter-dependent of each other. The influence of the action taken by one firm can descriptively vary to various other firms. The race of one to establish top bars without taking care of others; defines the market of first come first to sell and collect profit criteria.
Monopolistic Competition
It describes the set of qualities of both monopoly and competitive market that describes the one product; but free to exit and enter the market as per their choice. It not only allows to show its existence of product but also commands to stay in that area; allowing us to gain profit for long terms, with no side effects.
Monopsony
Like a monopoly, it also has a unique set of rules to maintain in this competitive market. Here the fact exists of “One buyer and multiple sellers“; this means only one buyer allows to hunt for their product from different multiple sellers who is selling the same product like various other sellers. The buyer can set his/her price of the product and can manipulate the market as per their choices.
The analyzing of Self-Research will lead you to examine all these forms of market, to not only see where your product may go, but it also provides knowledge about the profit and loss in return.
Also read: 20+ profitable Business ideas with 0 investment in India for 2020 .
Quantitative or Qualitative Research
After self-centred discussion and research, one must consider business overview of the product that should enter the market with its upcoming future of existence. You should consider a different market for your product which will go through it like-:
Physical Market
It describes the real market where a buyer will shop from the physical shop; A place where seller physically sells their respective product to real-world buyers and in return they get money.
Non-Physical / Imaginary / Virtual Market
It describes the market of digitalization, where multiple buyers and sellers meet virtually on one or another platform to fetch individual products and buy those. We can attempt all transactions online or even cash on delivery.
Auction Market
It describes this market as an exhibition where multiple sellers portray themselves attractively; so that buyers are attracted and they sell their product to high bidders.
Intermediate Market
The market of raw data where buyer r buys the raw data from the manufacturer and distribute them in requirement of final touchups for production materials as distributors.
Knowledge Market
The market where you pay and bid to sellers, in return they provide you with information and knowledge that describes your required product.
Financial Market
This market act as the area of the market that conducts plenty of liquid assets like – bonds, stocks, foreign exchange and many more similar products. It allows the buyer and seller to exchange their goods on behalf of their assets as a return.
All these types of the market allow you to conduct your research if you are planning to convey qualitative research; where planner allows to gain knowledge review from customers in deep, that will lead to in-depth analysis of the product from consumers, who are using the product. The close observation of product success is obtained by the feedback we get by our consumers because they are the end-user who tests our goods.
Whereas, in qualitative research; planned overviews the description of the product by real-world feedback of products through surveys, polling method and questionnaires, i.e., this product or market-related to each other or not, how many consumers are targeted by this product.
This market research will help you establish your product in an efficient environment.
Questionnaires
We define it as documentation and collection of raw data that contains multiple series of questions which are thrown in the environment to get a descriptive and effective information response. A marketing attitude questionnaires demand to gather the data about the product ready to enter the competitive market.
- It is a crucial action to getting answers about your volumed questions about the product from the market area or consumers. This survey collects information from secondary sources like – internet, magazine, newspaper, blogs, content, feedbacks, etc. Some effective questions like – The capital amount suffices to convey products in the market or “what is a price of market?”
- “Environment in which we introduce the product?”; is the key to your product’s success.
- Altogether our capital amount, we invest is “capable to give our targeted customer a beneficial product or not?”
- Attempt survey to know, “Which type of customers are attracted by your product or material?”
- Does this product tolerate all the circumstances or competition of market area and convey the best profit?
- Whether the product is stable for a long time or a short time.
All these are the basic question in the disguise of various fancy questions that must be answered before entering real-world entity.
Gather Raw Ideas
From all the above three descriptions you have collected much effective & efficient raw data to conduct research on your production. The market research gathered, is now ready to help you in deciding the different profitable market side.
After self-analyzing, to fetch about various forms that relate your product which must enter multiple types of market; only show the collective knowledge to plan your raw idea into valuable thought. Now the product will launch in the market to gain profit or ready to get an effective price tag according to the market value of your product.
Use survey tools like Google forms and type forms. These are the best research tools.
As per the collection of raw information, you are now ready to get the actual limelight to your product or goods.
Make Informative Ideas
We now set all these data to collect, analyze and mix to produce effective information. It sets your product to enter the market with help of various market research. It is the time to set an example of your product in the specified area, that may attract consumers with their appearance, price, or effective values.
The size of the market that your product will conquer will help you define that all your research may lead you to success in various forms.
Summary
All these steps must include your attention to generating your idea. The basic aspect of knowledge about what one can think, these steps will help you convey the perfect path. These are the effective steps which may give you a friendly response to your question, “How to do market Research for Startup“.
One should always consider these basic and friendly ideas into their plans because it is a path designed to achieve the perfect establishment of a business, and this also helps to avoid or deal any kind of loss of business during the startup.
