Determine Market Opportunity for a Potential Business Growth
It is not always enough to settle for what you are already comfortable and going steady in your business. Being a businessman is a progressive career that will astonish you with so many factors and knowledge along the way. Seeing an opportunity within the market you are in or even going out of your comfort zone and expanding on a different level. Hence, being able to see ahead an opportunity is of great advantage for every business-minded individual.
Here is a list of ways of efficiently searching for a market opportunity:
Know-How On Market Segmentation
For one to fully understand and effectively identify the needs of its market, market segmentation is vital. Consumer segmentation is basically knowing the class, age, level of income, gender, lifestyle, and purchase motivation of the target market. It greatly helps estimate the range of potential market and knowing what they want to strategically plan the introduction of the product in the market and knowing how to effectively reach them. These are called “hard variable”. “Soft variable”, on the other hand, identifies the influence of their purchase decision and the range of how much they are willing to spend in relation to soft variables. Mark Wunderbaum from Core Security explains that it typically leads to pricing, prestige, convenience, credibility, brand image and testimonials from other purchasers.
Analysis of Purchasing Condition of the Market
The purchase situation of the potential market plays a role in knowing the growth opportunity of the business. It is important to know when they usually make a purchase and the reason behind that purchase. Is it whether because they urgently need it, or store it for future use. You will be able to know it the market is sustainable when you know why they purchase your product. Also, it is relevant to know where they typically purchase the product. Be it in a convenience store, grocery store, or an online store. Additionally, distinguish their payment approach. Do they use credit cards, online banking, and what-have-yous.
Furthermore, taking a closer look at the distribution channels and product payment system of the consumers will aid you in identifying your brand’s position in the market. This information can help in strategising the best market penetration strategy appropriately. Thus, introducing to this niche an even more convenient purchase alternative will entice them. Something that the market are engaging in but not in the current option.
Analysis of Your Potential Competitors
It is inevitable to have competitors in the world of business, confirms John Dehnanm from Visionsafe -Safety Equipment Suppliers from Perth, WA, Hence, t is very important to arm yourself with an ample amount of knowledge with regards to the supply chain. Know what the existing market is doing and offering and determine how to elevate such a system. Take time to research the brands and products already available and analyse why people purchase them. Then, know the value proposition of such a brand or product. Identify whether it is for the common crowd where the value is at mediocre or it is at range with high-quality value. If your product can position itself in between or on a different level but still credible, then take that advantage to enter the market.
Conduct an Indirect Competition Analysis
Direct competitors are the ones who are selling the same service or product to the same market. Indirect competitor, on the other hand, can be a potential market growth in your business. Knowing the alternative industries or market that is indirectly connected but has relation to your product can open a more diverse opportunity. For example, if you are selling an organic shampoo online and you already have loyal consumers that regularly purchase on your store. A wise thing to do is to look at the market of those who purchase regular shampoo online. See how much they spend and how often they purchase. Knowing your advantages against indirect competitors will help you create a strategy that will provide additional insight and opportunities for your business.
There are many other ways of knowing when an opportunity will come knocking at your door. These strategies will greatly help and influence your expansion approach and enhancement. Hence, it is not ideal to embrace stagnancy in the world of business, being dynamic is the key to long-term success.