Analyzing the market potential is crucial before investing in a venture. This will assist you in figuring out whether there is a market for your good or service, how fierce the rivalry is, and how many potential customers could be willing to spend.
When examining a growing industry, Zorayr Manukyan urges you to bear a few points in mind.
Establish A Customer Profile As Per Zorayr Manukyan
The very first stage, in Zorayr Manukyan’s opinion, is to develop a customer profile. Using actual facts and market analysis, this is a moderate depiction of a target customer. These things should be included in the customer base:
- Data on demographics like gender, age, location, etc.
- Behavioral segmentation details like values, lifestyle, interests, culture, tradition, etc.
- Firmographic details like industry, jobs, etc.
One may better grasp what their ideal customers require and desire from either a service or product by knowing who they are. Additionally, one may focus their sales and marketing efforts on speaking to individuals specifically.
Study the Industry before Investing As Per Zorayr Manukyan
It’s crucial to do market surveys in addition to comprehending your clients and rivals. As a result, one will gain a better understanding of the industry’s size and possibilities for expansion. There are several methods for conducting market research, including:
- Primary data occurs when one conducts questionnaires, polls, and focus group discussions to gather data.
- Secondary data collection is the process of gathering information that has previously been published in publications like official reports or trade journals.
One can begin to determine if there is a need for any product or service after gaining a solid knowledge of the industry. Market sizing entails calculating the industry’s overall size in terms of turnover or the potential number of consumers.
According to Zorayr Manukyan, performing consumer surveys is a crucial phase in the market study process. This will enable you to comprehend the requirements and desires of prospective consumers for a good or service. It can also assist you in figuring out how much they are willing to spend on it.
Make sure the following research questions are included in the survey while designing it:
- The issue your service or product addresses;
- The existing solutions your target consumers are utilizing;
- The features they would desire in a new solution;
- The price they would be prepared to pay for that solution.
As per Zorayr Manukyan, you may better position your company to suit the demands of your target market by being aware of their needs and desires.
Look Into The Competition
As soon as you have a solid grasp of the prospective clients, it’s important to investigate the competitors. Find out who else is offering services or goods that are similar to yours. What do they excel at? What could they do better? How are their products or services priced?
Understanding the type of competitive market you are joining is also crucial. Is the marketplace a reigning champion situation? Or is there space for more than one player? One may need to distinguish their product if there are additional competitors in the market currently to stand out.