What is Market Opportunity Research?
A market opportunity (MO) is a potential product or service that consumers may want. In fact, if other companies don’t supply it, therein lies the opportunity. Thus, it’s essential to gain as many details as you can about it so you can benefit from a new market. That’s where market research comes in. Market research allows a business to gain further info about the demand in new markets. When carrying out your MO research, there are some key areas of note:
1. Research your customers and competition.
Use Market Research to understand your customer and rivals in-depth. It will help you to see whether the demand for the product/service is genuine and if it’s even worth the risk for your company to expand into a new market.
2. Get a high-level view of the market.
When doing research, it’s essential to get an insightful view of the market. For example, you need to ask:
- What’s the size of the market?
- How fast is it expanding or contracting?
- How many buyers are there?
- How intense is the competition?
3. Explore other opportunities.
It also makes sense to look at other options. Many businesses with a proven track record of success keep this in mind. Another key point is that with a finger on the pulse of the market, it will allow you to find new ways to expand your brand. It will also enable you to outdo your rivals.
4. Understand the business environment.
Many things can affect how businesses operate. Examples are tech development, economic indicators, as well as geopolitical shifts. For example, Brexit in the UK, where the nation left the EU, caused many issues. The UK’s exit from the EU increased stress on supply chains going out of the country. By the same token, getting goods out to the rest of Europe became a challenge.
Why is Market Opportunity Research Important?
A market opportunity is a chance for any growing business to set itself up in a new market, for example, with many different types of smartphones. In the early days of the phone industry, smartphones existed. But, none of them had an intuitive touch screen display. That was until Apple realized there was demand. So, they made an intuitive handheld phone with many features. And in response, they released the iPhone in June 2007. The opportunity, coupled with Apple’s reaction to it, changed the landscape of the market forever after.
Key Job Titles
There are notable jobs in Market Opportunity Market Research.
- Market Research Analyst
- Data Research Analyst
- Marketing Manager
Why Businesses Need Market Opportunity Research
For a firm to survive and thrive, it needs to take advantage of market opportunities. And to do so, it needs relevant info on the market, which it can only gain from good market research. In cases like these, it’s good to remember the phrase “If you don’t, somebody will.” It’s better that you set up yourself in a new market first. Better that than have somebody else move in before you and raise the barriers to entry.
Key Success Factors
For a business is to be successful, it needs to be timely. It needs to be able to work with the most current info. It must also be able to find out the best opportunities in the market. Also, it needs to be thorough. A business that wants to move into a new market or expand must inform itself well. If not, that mistake can allow the competition to take hold of that new market for themselves.
About Market Opportunity Research
When doing your market research, use all the tools at your disposal. Many online databases already exist to provide a broad look at the state of the market. These will have a good layout report of the Quantitative and Qualitative findings. Keep in mind that niche markets will need specific data. In addition, it’s easy to get the information if you commission a custom market research project. These may use many techniques, including Surveys, interviews, and Focus Groups. These are excellent primary sources that you can use to increase the collection of valuable data.