Marketing is about responding to consumers' needs. It is important to find out what these needs are before launching a new product.
A business conducts market research to help identify gaps in the market and business opportunities.
What is a market?
Businesses sell to customers in markets. A market is any place where buyers and sellers meet to trade products - it could be a high street shop or a web site. Any business in a marketplace is likely to be in competition with other firms offering similar products. Successful products are the ones which meet customer needs better than rival offerings.
Markets are dynamic. This means that they are always changing. A business must be aware of market trends and evolving customer requirements caused by new fashions or changing economic conditions.
There is far more to marketing than selling or advertising. Put simply, marketing is about identifying and satisfying customer needs.
The first step is to gather information about customers needs, competitors and market trends. An entrepreneur can use the results of market research to produce competitive products.
The first step for a new business or product is to attract trial purchases.
A new magazine may run special offers to get customers to try the first issue, hoping that repeat sales are generated. The magazine will soon close if customers fail to buy future issues. The aim of a special offer scheme is to convert trial purchases into repeat sales.
Market research involves gathering data about customers, competitors and market trends.…