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Michelle Nonkazimulo Ndiweni
AS earlier discussed, sustaining a sound business momentum requires earnest determination and strategy. Among these is the need for managers and entrepreneurs to carry out market research in order to ascertain critical market characteristics.
Previously we discussed the importance of having knowledge of the market potential, and the structural changes in the market. In this article, we consider other important aspects.
Essentially, it is very important for managers and entrepreneurs to have full knowledge of their competitors and the industry.
Frequent studies on competitors’ objectives, their past and present strategies along with competitors’ capabilities are paramount.
This enables managers or entrepreneurs to make sound decisions that benefit their companies more and give them better competitive edge.
For instance, it would help a great deal for managers to know when their competitors are planning a sales promotion, for example, as they would act accordingly, instead of knowing about the sales promotion when it has affected their sales negatively.
Another important factor that managers and entrepreneurs need to keep an eye on, is the general pricing in the market. A deep appreciation of the current prices along with future pricing will enable the business to operate more profitably as a result of optimal revenues.
Imagine a scenario where all other companies reduce their price and one maintains its price, without knowing of the price reduction.
That would probably be a disaster as customers would likely flock to the rest of the players since their price is lower. Alternatively, your business could also miss out on revenue due to grossly under-pricing your product – it’s not always the case that a low price attracts more customers.
Pricing right is key, and that requires having perfect information of the price trends in the market.
Furthermore, anticipating demand for your product, brought about by changes in the market is also important as this would allow the entrepreneur to act fast. Remember the early bird catches the fattest worm.
Imagine a scenario where a major event is about to be held in your city. You immediately grab the opportunity to offer your product to the event hosts before your competitor does. You seal the deal and there you have it, a sale!
Wouldn’t that be exceptional? – most certainly, it would. It is important to keep your ear on the ground and your eyes peeled for potential sales that could boost your revenue.
Finally, a deep and thorough knowledge of your customers can not be overstressed. After all, your customers are the reason for your business’ existence. All business decisions should be informed by customer needs, that way, the business would be in a better position to operate efficiently.
Do research to ascertain the current and potential customers. Who they are, what they need, in what form, how much they are willing to pay for it, and in what settings they prefer to buy it. Having perfect knowledge of these questions would place your business at a significant advantage as you are more likely to make profitable decisions.
Also, researching on the current problems in the market could provide you with extra relevance as you attempt to profitably solve the problems.
In a nutshell, it is paramount that, regardless of the position you are in, in the market, you consistently and constantly carry out research to know the state of affairs at any given time, this will empower you to make the most of your business.
Michelle N. Ndiweni holds a Master of Science Degree in Marketing and is a lecturer at a local university. She is a marketing consultant, researcher and trainer and may be contacted on the following profile on LinkedIn, https://www.linkedin.com/in/michelle-ndiweni-29015176/
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