Market research is the process of gathering information that will allow you to make informed business decisions about start-up, innovation, growth and the 4 Ps of marketing.
Defining the market in the target sector
This is where you establish a picture of the market you are targeting. The market is defined as the place where supply (you) meets demand (your customers).
Demand refers to the amount of product your target market is willing to buy. Defining demand is a very important that warrants thorough analysis. What is key is that you make the right decision about proper customer segmentation so that you can correctly define who your customers are and offer them an adequate supply of product.
Supply looks at who else has a product like the one you are planning to sell to a targeted customer group. This step will help you determine if there is already an existing supply and if you can carve out a space for yourself among your competitors.
Defining the market environment
It is important to know the environment of your market because it will have an impact on your business. The market environment encompasses everything that might potentially affect your business.