When assessing any market, gathering data is challenging and often involves subjective answers. It’s essential to understand how your business will analyse the market and choose the proper objective assessment methods based on your company’s needs.
There are many ways to measure a market: primary research, secondary research and quantitative analysis methods. Each approach has its pros and cons. But generally speaking, you should use objective methods wherever possible – primarily if you work with limited resources or on a tight deadline.
Understanding which type of analysis is best for your business requires understanding your existing resources and what you have to achieve success. Let’s look at common ways companies assess markets and help you determine which method is best for your situation.
The classics: primary and secondary types of market research
Primary market research requests first-hand information, for which focus groups, surveys, and telephone interviews are used. After analysing the answers, you can specify the portrait of a potential customer, learn about their pains, and identify insights for further promotion in the market. Primary research is also helpful for market segmentation.
Secondary market research is indirect data on the state of a market. Reports on trends, statistics, industry content and competitors’ sales data. They can be obtained from open sources, which on the one hand, is excellent, but on the other hand, is associated with difficulties. For example, the information you found needs to be updated or completed; it is paid and expensive, or even imperfect and does not meet your needs. That’s the question.
Two main principles of market research
There are two principles of market research that complement each other. You can select either of them or apply both.
Research from top to bottom:
• Determining the size of a market for a product or service;
• Reducing the target segment;
• Calculating the number of customers in the segment.
Research from bottom to top:
• Determining the value of a product or service;
• Calculating the number of orders per year;
• Calculating the number of potential customers.
In the first case ↓, a company produces hammocks for pets and first finds out the number of owners; then how many of them want/are ready to buy their pets such accessories; after that, it calculates the available market volume based on competitors’ sales data.
In the second case ↑, first, the price of one product is calculated; then the number of potential buyers taking into account the average service life of one hammock; and from here, the volume of possible sales.
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Other methods of market research
Ready-made analysis. In any case, information about the economic activity of competitors and other metrics by indicators, region, and type of activity will be needed. It is difficult for a beginner to make sense of this data, so many people follow the most miniature resistance line: buy ready-made research. While ordering ready-made research, pay special attention to which data answers your questions.
The main task is to conduct a qualitative analysis and obtain correct data, considering your business goals, circumstances and plans.
You can hire specialists for such a task or do it yourself. Find information about:
• each potential competitor/partner/customer in search engines;
• find out indicators of economic activity;
• manually compile statistics and analyse them.
Need a ready-made decision?
YouControl.Market is the most complete source of open data on companies to make informed management decisions. It was created taking into account the requests and needs of business owners and based on real cases.
You can single out the TOP largest companies by revenue or other parameters without extra effort. For example, do you know how to find wholesale companies with income over 100 million with phone numbers and addresses? YC.Market will download these companies by lists, names, and contacts.
YC.Market will help get relevant data about businesses and companies based on analytical features, data from open sources and official registries.
- Get data and research the industry size and market share of companies.
- Track changes and trends in the market or a specific niche and predict business success.
- Segment and download data according to the required parameters.
- Expand your Purchase and sales department contact base.
- Find new customers, partners, suppliers and contractors.
- Due to the Monitoring function, be the first to know about establishing new companies and individual entrepreneurs.
