Market research and its relevance when it comes to investment

Market-research-and-its-relevance-when-it-comes-to-investment

Investing in new markets requires extensive knowledge about the target public, the economy, the commercial activity and other factors that a market reserch can help to know exactly.

The market study is an analysis carried out by the marketing area, its main objective is to know or study the commercial and/or economic activity in a specific place that is of interest for the company’s activities related to its expansion. In addition, this will allow them to know an approximate percentage of potential customers in the region, their behavior, and even offer an adequate value for the product.

In terms of marketing strategies, this study will also help determine which are the most viable actions to be taken to achieve success in the new market to be entered and to know if the products or services are focused on the right consumers.

Types of market research

There are 4 main types of market research:

      1. Qualitative: It studies the market through variables that cannot be measured, taking into account aspects such as buyer sentiment.
      2. Quantitative: It is based on data drawn from a population sample, for example a total number of consumers of a certain product and the maximum value they would pay for it.
      3. Primary: This is done through methods such as surveys.
      4. Secondary: Information is obtained through reports, articles, books, etc.

Market research-and-its-relevance-when-it-comes-to-investment

How to conduct a market study?

In order to determine the characteristics of the target to be reached, it is necessary to ask questions such as:

      • Who makes up the market today?
      • Is the market growing or shrinking?
      • Who are the potential consumers?
      • What are their buying and consumption habits?
      • Who are the competitors?
      • What products do they offer and what is their price?

Despite the fact that only 20% of products that go to market are positioned according to the IEBS school, few companies give the importance they deserve to carry out this type of study.

It is important for any company that is expanding its investment territory to know the answers to these and other unknowns that can be solved by a market study.

Knowing your target audience will facilitate the fulfillment of your business goals, and will make your expansion process much more efficient and smooth.

If you are interested in expanding your services by investing in countries within Latam, do not hesitate to contact us, we will be happy to help you find solutions to your specific needs.



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