Market Research

What is market research? 

Market research is made up of marketing analysis and market monitoring. It results in a market forecast that estimates future market development. The difference between the two components is as follows: 

• Market analysis assesses the current market situation with the aim of identifying the structure of the market share and the market potential.
• Market monitoring is an ongoing process that goes into more detail. Market changes and fluctuations are noted, as are new trends.  

To minimize corporate risk, market research should be as comprehensive as possible. An inaccurate market assessment for big or small business can result in a major investment and, consequently, major losses if the actual sales potential is too low. 

Therefore, it is crucial to identify the market potential statistics as accurately as possible throughout your analysis. 

Market potential 

The market potential of a product or service is the quantity that can be purchased by a particular target group in a particular period. Determining market potential should involve three steps. 

Identify trends  

Engage in robust research processes to determine trends that have a great impact on the market potential. Product reviews, for example, can provide new ideas, while changes in the market share can bring market opportunities and risks.  

You also should include Internet search volume in your research. The more popular a product is on the Internet, the higher you can set the planned sales volume. A high search volume on the internet thus gives you hints on current trends.  

For example, if the search volume for underwater cameras increases, a mobile phone or a watch with underwater photo function could be a promising new trend. In addition, it is not only crucial to know which trends move your target group, but also at what time these movements take place. Seasonal fluctuations should be included in your market analysis section.  

Determine the phase in the product life cycle 

The market potential for your product or service increases or decreases depending on where it is in the product life cycle. The closer you get to the degeneration phase, the more important it will be to spot new trends, so your competitors do not overtake you.  

Calculate the market potential 

Many industries are subject to specific regulations and standards. Engaging vendors who fail to comply with these requirements can expose organizations to legal and compliance risks. Vendor risk management helps verify vendor compliance and ensure adherence to regulatory guidelines.  

This is particularly crucial as environmental, social, and governance (ESG) regulations are becoming standard across the globe and more stakeholders are demanding corporate transparency regarding these actions.  

Market intelligence  

The insights gained from your market and competition analysis are part of your market intelligence. 

Comprehensive market intelligence requires you to have all the relevant information about the market to ensure sound decision-making. When you have this, you can better understand your market, the competition, and your customers, which allows you to better forecast future needs and developments. 

Market intelligence is part of business intelligence, and it forms the basis for a successful marketing and corporate strategy. 

How LexisNexis supports market research 

LexisNexis offers solutions to streamline your market research processes. With Nexis^® Research Solutions, you can explore relevant data in easy-to-filter formats, so you have a more direct path to profound insights and informed conclusions. Access over 36,000 licensed sources and 45,000 total resources in over 37 different languages for complete, accurate, and verifiable data.  

All data is classified by topic, industry, location, people, company, and other tags with our proprietary LexisNexis^® SmartIndexing Technology™, making it easy to search, sort, and use. So you have all the information you need to make sound investment and business decisions to grow your organization.

 

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