Market-Research-Competition2018-09-15T07:40:35+00:00

Market Research Guide
Investigating The Market
For A New Product


  1. Market Research
  2. The Target Market Segment
  3. The Competition & Market Trends
  4. Sales Channels & Required Margins
  5. Determining Product Price
  6. Sales Volume & Market Share
  7. Hurdles & Barriers To Market Entry
  8. Financial Planning & Analysis

3.  Competition:
What Are Customers Currently Buying,
For How Much, & What Will
They Be Buying Tomorrow?


After you identify your target market segment, you should identify what other businesses are targeting the same customers with products meant to address the same needs or wants. It would be highly unusual for there to be no competition. Just because your contemplated product would be different or better doesn’t mean that there is no competition. As long as there is some business out there trying to satisfy the same needs or wants of your potential customers that your product is, then there is competition.


Once you identify competitors you should evaluate what the strengths and/or weaknesses of their products are relative to your contemplated product.


When researching the competition you should definitely investigate the following:


1. The general health of the market (e.g. how much is being bought)

2. How the competition markets and sells to customers

3. Market share of the competitors

4. Any available financial information on the competition (e.g. their profit margins)

5. The form and content of their marketing materials (e.g. web sites)

6. What the prices are for the competing products

7. Where they get their products manufactured

It is also important to research and take into account trends in your industry and target market. A trend is a description of the general direction an industry or market is headed in.


For example, in the music business there has been a trend in recent years away from customers purchasing CD albums and towards customers downloading music over the internet instead. Such a trend has a had a very significant impact on the music industry.


For example, many retail record stores that used to sell CD albums ten years ago have gone out of business and shut down. Ten years ago if you had been contemplating investing in a product whose target market was retail record stores it would have been very important for you to know about this trend and avoid a potentially bad investment.


Learning about industry and market trends can be achieved through keeping up on current events in general, talking to people actively engaged in the industry or market, reading industry publications, and also online research.


Previous Guide Section
Next Guide Section


Market Research Guide
Investigating The Market
For A New Product


  1. Market Research
  2. The Target Market Segment
  3. The Competition & Market Trends
  4. Sales Channels & Required Margins
  5. Determining Product Price
  6. Sales Volume & Market Share
  7. Hurdles & Barriers To Market Entry
  8. Financial Planning & Analysis

3.  Competition:
What Are Customers
Currently Buying,
For How Much, & What Will
They Be Buying Tomorrow?


After you identify your target market segment, you should identify what other businesses are targeting the same customers with products meant to address the same needs or wants. It would be highly unusual for there to be no competition. Just because your contemplated product would be different or better doesn’t mean that there is no competition. As long as there is some business out there trying to satisfy the same needs or wants of your potential customers that your product is, then there is competition.


Once you identify competitors you should evaluate what the strengths and/or weaknesses of their products are relative to your contemplated product.


When researching the competition you should definitely investigate the following:


1. The general health of the market (e.g. how much is being bought)

2. How the competition markets and sells to customers

3. Market share of the competitors

4. Any available financial information on the competition (e.g. their profit margins)

5. The form and content of their marketing materials (e.g. web sites)

6. What the prices are for the competing products

7. Where they get their products manufactured

It is also important to research and take into account trends in your industry and target market. A trend is a description of the general direction an industry or market is headed in.


For example, in the music business there has been a trend in recent years away from customers purchasing CD albums and towards customers downloading music over the internet instead. Such a trend has a had a very significant impact on the music industry.


For example, many retail record stores that used to sell CD albums ten years ago have gone out of business and shut down. Ten years ago if you had been contemplating investing in a product whose target market was retail record stores it would have been very important for you to know about this trend and avoid a potentially bad investment.


Learning about industry and market trends can be achieved through keeping up on current events in general, talking to people actively engaged in the industry or market, reading industry publications, and also online research.


Previous Guide Section
Next Guide Section