Most businesses are successful long term because they have found a niche in the market, somewhere they have satisfy the market needs and demographics. Understanding your marketplace will help the company create a viable business strategy, that will hopefully give you an edge over competitors. One of the most important questions a new startup must ask themselves when releasing a new product is “where are we going to release the product, and to whom are we going to target.” There are two types of market research a company can use, Primary market research, which includes looking at competitors sales, channels they use to market, and looking at how the competition is exploiting the marketplace. And Secondary market research, which includes studying existing company and government data, studies carried out by existing competitors, and any other information online that may help. Having an understanding of our specific markets and geographic areas will help us organize our business plan. Knowing and understand our geographic area we are most compatible with will help us plan who we need to get our key resources from, other outside companies we may need to team up with and of course help us decide what our customer segmentation is.
Our target market will include the middle class ages 19 to 40. Specifically new families and multiple income households that don’t necessarily have a lot of time in their busy lives. Millennials growth has been booming recently and is responsible for most new houses rent and bought.
With this above information we have concluded that we should focus on Long Island as our starting geographic market. With Long Island as our starting market we have the advantage of already understand the demographics and people that live here. So we basically used our previous market intelligence to gather information about the people around us. Additional ways of acquiring market information includes data mining, questionnaires, and conducting focus groups.
We would use these techniques not only in the early stages of our company but throughout its lifetime. Gathering market information in our early stages will help us understand what the customer really wants. This will help us with designing and pricing our product, along with simply getting our name out.
Throughout our product lifetime its also important to conduct this research. This will give us a better idea with what the user likes and dislikes about our product, introduce new ideas and enhancements we may put in place, along with seeing what our potential competitors are doing that we are not. The ability to have good, reliable, market information requires us to hire an employee or outsource them who’s sole job is to gather, sort and analyze market information we have gathered from our primary and secondary sources. This includes analyzing our competitors, geographic location and target markets in order to solve any problems we may have to help the longevity of our company. We have created a new market solely on the fact that this technology currently does not exist. With no existing competition we will be the first of our kind.
Because we own this uncharted territory we must focus on constantly innovating and improving our product incase another company decides to use this technology.