The significance of Market Research before Business Formation
Dubai offers myriad opportunities to business owners and entrepreneurs from all around the world. However, setting up a business from scratch or scaling up your existing business requires substantial insight regarding the industry, existing competitors, and target audience. Information gathered through the process of market research essentially allows entrepreneurs and business owners to understand the market and their audience in order to make a sound decision regarding their business.
What exactly is Market Research?
Market research refers to the process of systematically gathering information related to individuals, markets, industries, and organization with the help of analytical and statistical tools and techniques in order to garner insight to support decisions related to company incorporation.
Elements of Market Research
Market research entails myriad elements that collectively define your research objectives. Some of the most important elements of market research include:
- Size of the Market
- Geographic location of the target customers
- Demographic description of the target customers
- Market Segmentation of the target customers on the basis of education, age, sex and profession
- Market demand analysis
- Sales analysis
- Consumer analysis; their needs, wants, habits and buying behavior
- Current competitors in the market
- Product research
- Promotion and advertising research
- Distribution Research
Market research is approached in 3 different steps before
company formation in Dubai that include:
- Intensive Study of the market problem
- Scientific Approach to find the solution to the market problem
- Market research as a tool for decision making
Utilizing Market Research at an Early Stage
As mentioned-above, market research essentially helps business owners understand their market, their target customers, and their competitors before launching the business. Without proper market research, it is impossible to get your marketing strategies aligned with the industry and market trends. Many business consultancy and
audit firms in Dubai are geared towards helping business owners comprehend the market from a financial end in order to outline better policies that will lead to business longevity.
There are 2 primary things that make market research a crucial component of a startup, namely, competitor analysis and consumer behavior analysis. These two elements alone contribute heavily towards your overall success. Competitor analysis helps business measure their strengths and weaknesses with the current competitors, in the same industry or market, in order to outline what strategies would work to beat the competition.
Consumer behavior analysis allows you to measure the strength of your products by analyzing how they can fulfill the demands of the customers. If your consumer analysis aligns well with your product and services then the possibility of meeting consumer demand is high. Consumer analysis also educates you about your customers’ buying patterns; the timing of their purchase. Knowing your consumer’s buying behavior can help you understand how and when your customers make a purchase, and how you can use that information to make a successful sale.
Before you make any significant decision about your business, it is crucial that you have a thorough understanding of your competitors, target audience and its buying patterns and the industry. This information will allow you to make better decisions regarding your business.
