If a business has a life of its own, then the market of a business is an ever-increasingly complex ecosystem. As a business owner or CEO it is vital for you to have a deep understanding of the business you are running, as well as the market you are aiming your product or service at. When a business first starts, your focus will always be keeping the business afloat, rather than worrying about complex market research principles, but this could be a serious miscalculation. A new product or service will not survive any market if there is no demand for it.
Often, a business idea will often be a response to a gap in the market, and finding this gap in itself can sustain the knowledge of your market that is needed. Yet, as time moves on and your business expands, merely identifying a gap in the market is not enough to guarantee success. Your company itself will be changing, the product or service offered may change as well; therefore, the market you are aiming toward also changes. Even if the product or service is something that doesn’t really change, you cannot assume the same will be said for the market. External influences such as substitute goods, cost of living, fashion trends and others can all massively affect your target market, and if these changes remain unknown, your company cannot adapt and overcome them.
If you find yourself in a situation where you may be out of date with your target market, or simply wish to achieve a deeper understanding of your market, processes such as market segmentation may be beneficial to you. This process can help you see more nuanced gaps in the market that have emerged over the lifetime of your business and shows areas of expansion that you were not aware of before. As your market gets more complicated, understanding it will become more expensive, but these expenses are necessary if a business is going to thrive as it expands, rather than spend costs in the wrong area which can lead to the business suffering or even worse be fatal to it. As your business expands, more of your resources need to be put into market research, this will allow for sustainable growth, finding gaps in the market to fill, rather than wasting resources to force a gap in the market where there isn’t one.