When asked by marketers about what is the key to niche marketing success, most gurus will agree that market research is the key. The simple reason here is because if you are in the wrong market or if you are in a market that does not have the demand for your product, then your business is doomed. The basic to the success of your business is that you will at least need a target market that would actually buy your product. No matter how revolutionary your product is, if no one wants it, then you won’t be making any money. And the main reason to why most people start their own business is to earn money so one will have to be extra careful not to make the mistake of being in the wrong market.
What is a market research?
The first thing you should know about market research is what it really is. Well basically, proper market research involves you learning about the demand that is available within a niche. Once you know about the demand, you will want to look at the amount of competition that you will have to face if you were to start a business within the said niche.
Next you will want to find out about the people within the niche. Are the people in your niche ready for your product? Will they be able to accept your product? Question like how the market is responding to the existing products of your competition at the moment will be able to tell you a lot about your market.
A proper market research consists of getting as much knowledge on a certain niche to see if it will be profitable if you were to start a business in the niche. With proper research on the market you can avoid starting a business in the wrong place at the wrong time. As you can see, it is mighty important for any internet entrepreneur to do a market research because it can help them avoid failure and give them a better understanding of the terrain that they will be playing on. Knowledge is power and knowing your market like the back of your own hand will definitely help you run your business in a more secured manner and all the knowledge will also aid you in your decision making in the future.
Learn the economics of your market.
The economics of your market are very important and it will serve as a confirmation of all the data that you have gathered so far within your niche and market research. When we talk about the economics of your target niche, we are talking about the estimated amount of people in that industry, the amount of job opportunities or the employment statistics within your niche. Not only that, you will want to take a look at the profit and loss, income and earnings chart as well. All these global information can tell you just how strong the niche is at the moment. The increase of the numbers should indicate the demand of a niche and a decrease could mean that the trend is nearing its end.
Ideally, you will want to enter a niche that is new and booming and not when the trend is dying. For example, you will want to be in on the Apple trend now and you should know that the laptop trend is slowly dying due to the rise of tablet PCs. All of this economical information can help you understand and affirm your other findings during your market research.
Do ample research on your future competitors.
Another great way to do your market research is to actually look into your competitors and what are their future plans. Are your competitors still keen to take the lead in the industry or are they thinking of bailing out? Find out what they have in store for the future and this should prepare you for what is to come and this should also give you time and ideas when you are crafting your own products.
Remember, not only do you want to be in a winning niche; you will want to enter the niche with an absolute bang! This is why you will want to do your research on your competitors. The more you find out what they have in store for their customers in the future, the more time you will have to prepare and counter their moves. Like it or not, your competitors will be doing the same as well. This is why you have to be prepared for a war between you and your competitors especially if you are going to be going into a very ‘Hot’ niche.
Is your online business international or local?
You will have to be clear whether you are going to be selling online or offline. As an online business, essentially your product will be mostly digital products and if your product is an offline product but trying to seek more clients via the internet channel. The benefit of selling online is that you can potentially reach a wider amount of people and you can even attract business internationally. Make sure to be very clear on your business model and make sure that you have done your market research accordingly. If you are a fully online business, you will want to look at the demand from the entire online perspective.
Otherwise, if your business is based an offline product you might need to look at the countries and geographically because your product might not be suitable for everyone throughout the entire world. You can use a survey or a poll to help you understand your target market more. Visit forums within your niche to find out what people are talking about and learn what the hot trends are today. Cashing in on trends is a great way to get your business started but if you want in on the long term, then you need to find those undying and evergreen demands that are within your niche. Only then will you be able to create a product that people will love and want to buy for a long time.
Originally posted 2013-10-31 03:51:23.