How can we perform an effective market research

 

When we decide to explore specific markets, first we need to ask the question of what we are looking for. So, this is an important assumption since we can look for many unnecessary variables and neglect the more important ones.

What kind of variables do we have? first we have current positioning in terms of competitors, extent of rivalry, products and/or availability of services, trends of supply and demand, expected earnings, Geo-political trends, environmental factors, trade trends, markets size, forecast of unexpected interferences, cross-sensitivity variables-dependency, academic researches, variables coefficients, trends of creativity and innovation, Market players and more.

Therefore, we have to ask if all of these variables are important and need to be explored. Well, it depends, since there are in depth market researches and less in-depth ones. It all depends on the final target. If we deal with a strategic plan, we need more in-depth market surveys and variables. If we just look for financial guidance, we will explore less market variables but more financial ones that are part of the business’s accounting and stock exchange reports. Therefore, the in-depth’s relevancy depends on our final need.

For example, let’s take a company that wishes to penetrate to the US market and another company that its owners want to raise funds.

In the first case, we will have to rigorously explore all markets variables and the last question is “do we have enough resources to implement what we wish for? By examining the company’s cash flows we can get the right answer.

In the second case, we will mainly analyse the company’s financial performance and execute an estimated worth valuation report that tells us what the share’s price is. We will generally depict the market and use a few market variables, in order to see if these results are durable. Anyhow, it will not be the most important chapter of the report.

In conclusion: Our resources and those of investors and directors have time limitation and we need to focus on the right variables in order to save time and to get the stakeholders intention.