When researching market trends there are three major things to consider; identifying the right sources for research; discovering existing successful strategies and finally; getting some excellent data and analytics. We’re going to lay these out for you in clear points to help understand how to research market trends in the most effective and efficient way.
Put very simply, the success of any entrepreneur in the United Kingdom relies primarily on his or her ability to understand and react to the market and its trends. The most successful business people have a distinct ability to understand the trajectories of the market and then devise constructive and practical strategies that utilize the trends in the market to their benefit. As long as individuals can actively understand how the market operates and possess the business acumen to ensure that they can maneuver their business in a way that benefits from the market, it is very likely that they will continue to thrive.
Having said that, it is also important to understand how one must go about understanding the market. This means developing a marked ability to effectively research market trends and actively understand how the market is evolving. Individuals must be equipped with the right tools and the right sources of information to objectively research market trends; and furthermore, they must fully understand how to do so.
This blog post works to help you understand how to research market trends. It also provides various tips and tricks that will help you understand how markets evolve.
1. Identify the right sources for research
There is no handbook for identifying the right sources for research on the trajectories of the market, but we can help in providing you with specific tips, tricks, as well as warning signals regarding the authenticity and reliability of sources for research.
The market is essentially a combination of all customers within the market, and perhaps the most foolproof way of ensuring that you receive objective information regarding anything in the market is through using customers as a source. This means that you must actively engage in understanding the customer’s perception regarding the market, and subsequently also understand what needs and requirements the customer has. You can do this through various polls and research projects, such as interviews and questionnaires, and these could be a very useful source in your efforts to understand the market.
Another valuable source of information could be the players within the market. Though you must be weary of deliberate attempts by players to mislead and misinform you, it is still important to attempt to objectively understand their perceptions of the market since they have been doing market research through a variety of means that are most likely different from yours. Thus, it may be pertinent to understand how competitors and other stakeholders in the market view its trends and trajectories. A genuine and experienced player in the market is, essentially, your jackpot.
2. Research on the marketing strategies of big players
This means that you must actively work to understand how big players market their products and services in the current industry. This will give you a broad idea regarding how competitors perceive the needs of the market and how they are going about reacting to those needs. For example, if a significant player in the market for sandals is using comfort as the primary benefit of its product, you will use that to infer that comfort plays a significant role in determining choices in the market.
More than understanding the needs and wants of the market, you will also, to a great extent, understand how competitors in the market are conducting themselves. You can then use that information to establish your strategy. This does not mean that you must conform to the strategies of competitors, but you can use strategies to determine how you are to go about marketing your products.
3. Market Trend Analytics: Big Data!
As most people who are experienced in effectively analysing markets will tell you, it isn’t enough to know the size of the market and the number of people that may be interested in your product. What is perhaps essential to correctly understanding the market regarding how it operates and where it is going, is the analysis of growth trajectories. That is, you must know whether the market is growing in size, whether it is shrinking, whether or not the market is expanding onto other spheres and the like.
This will not only allow you to effectively understand the needs and wants of the market, but will also provide you with an edge when you work to use this analysis to determine your strategy. If, for example, the market is expanding onto other spheres and integrating with different products and services, it is essential that your business creates products and services that incorporate a variety of facets into the projection of your product in order to remain relevant and successful.
In a nutshell, it is very important for any budding entrepreneur to realise that an understanding of the trends of the market is not a static process where you just sit down and research for a couple of days. As markets are embedded within society, they react to changes. In a society that is as cosmopolitan and transient as that of the UK, and in a world that is continuously adapting to rapid changes, markets change overnight. This means that the trends never remain the same. For an entrepreneur to effectively adapt and react to the market, he or she must always actively work to learn more about it and implement their learnings onto their businesses and business strategies.
At Boost Capital, we work to provide entrepreneurs with a variety of different opportunities to find loans for their businesses and realise the dreams and ambitions that they feel their company can fulfill. In a world of increasing competition and decreasing opportunity, Boost Capital champions itself to helping businesses grow. If this blog helped you, and if you would like to learn more and achieve success, contact us!