A 5-Step Guide for Conducting Market Research for Startups

We all used to do our homework before attending the next class during our school days. Doing homework was imperative then. Doing homework is imperative now as well. Replace homework with the market research for startups today. Observe the connection! Market Research = Homework A match made in heaven. Here is a simple warning. Without conducting a good market research for startup, it will fail. You surely don’t want your startup to meet the bad fate as Webvan. Do you? Without further ado, let’s begin.

Purpose of Market Research

What if I say that doing market research for startup or more precisely, market analysis is the backbone of any business? All startup owners must invest a good amount of time and effort in this sole activity. Being a startup owner, you must understand what actually market research for startups is all about. In simple terms, it is the process of gathering qualitative and quantitative data to assess the overall situation and structure of the market, which in turn helps you gauge the possibilities of ensuring long-term strategic gains for your startup. Once the data is with you, you can use mathematical and statistical tools to analyze and interpret it. The precise interpretation about the size of the market, the value of the market, possibilities of market expansion, number of sellable and buyable products, gives startup owners the ability to make informed decisions about launching their startups at the right time. Conducting thorough market research will also allow startup owners to opt for sustainable growth strategies that will help them in the long run. This whole process serves the purpose of market research fittingly well. If you own a fairly new startup, you must be well prepared to cover all the basics, including your content, marketing operations, distribution sales, service, and customer support teams must be on the same page before making any strategic decision about launching your startup. The best way to start your marketing research and analysis is to write it down. You can use the document to understand the key provisions that you need to ensure smooth flow of operations within your startup. And if there is some deviation, you can always check the document to set your path straight.

Industry Overview (industry trends and barriers)

To develop a successful startup research plan, understanding the existing industry dynamics of their niche is one of the most important pre-requisites for new startup owners. This is where trend jacking comes into play. As a startup owner, you must keep a bird’s eye view on the latest marketing trends within your niche industry. Simply put, all the relevant information about your industry and business needs must be on your fingertips. Reading startup research reports, conducting relevant market research surveys, participation in industry-specific seminars, webinars and conferences and workshops can go a long way in shaping your understanding about new and upcoming trends within your niche industry. You can also use online tools to your advantage and gather all important information about new business and marketing trends. Leveraging technological tools to conduct market analysis will bring startups a lot of insights and fortunes and help them make progress by leaps and bounds in this ever-changing and challenging landscape. There are many tools, applications, and plugins available. You can use them to your advantage.

Market Segmentation

As mentioned in the preceding paragraph, it is very important for startup owners to have knowledge about their buyer personas and potential customers. Do remember that not everyone will buy from you. This is why it is a prerequisite to work out market segmentation strategy. Before chalking out the segmentation plan, you being the startup owner must know about the target audience.

Developing buyer personas will help you carry out startup marketing analysis quite easily. For creating the buyer personas, you need to gather information about their demographics, habits, interests, locations, etc. This particular set of information will provide you with the rough idea about what your target market and target audience look like. Remember, a buyer persona is a semi-fictional representation of your potential customer. In order to develop a buyer persona, you can carry out interviews, phone calls, and use other online tools to gather the information required. Once you are done with developing buyer personas, it’s time to create a feasible market segmentation strategy to target them with email marketing, drip marketing, and social media marketing tools etc. Having a smooth and robust target marketing strategy will help you in fine-tuning your market analysis approach while making informed decisions about your startup’s operations and sustainable growth.