Market Research Essay
Before producing a product the producer will want to have an idea of what demand is likely to occur in response to advertising. Market research is used to find:
* What competition exists for the product
* What is the best way to reach potential customers and tell them about the product
* What will stimulate people into buying it?
Market research is used by businesses that are newly established, and businesses that have been established for a longer amount of time. E.g. Thornton's has been established for over one hundred years but they will still need to use a market research report before placing a new store in an area.
Market research will also show …show more content…
Competitor Scan ---------------
A competitor scan is very useful because after doing this research we will know how much competition there is in the area. It will also show how many of the customers go into each of your competitor's outlets.
This can be very useful because then we will know how much effort we are going to have to put in. For example if you locate next to a large scale record shop with top quality goods and a high level of service we will have to put in a lot of effort. But if we locate next to a small out let we can expect to have to put less effort in. This does not mean that it will by easy, it means that it will be easier. It would be in our best interests to do this and locate to an area with no or little competition.
A competitor scan will also show how long a potential threat has been trading. This is very useful because if a business that has been there for 20 years a business that has been there for 20 years it is obviously going to be better know than a store that has only been there for 1 year. There of course are some exceptions. For example some businesses may be leading competitors that have just located for example Nike.
A competitor scan will also tell you the address's of each of