1000 Business Lessons Every Businessman Must Know

Chapter 17 Market Research: Guarantee of Product Vitality (2)
123. How operators grasp the market

Sichuan "Hope Group", which is known as the "Chinese feed king" in China, its founder Liu's four brothers abandoned the "iron rice bowl" and became a seller. After several setbacks, they started from a small business and finally discovered a vast "feed market". , the difficulty of its situation can be imagined.

And just when they discovered that feed has broad market prospects, in fact, the Chinese countryside, which is the "world's first market" of the agricultural industry, has long been dominated by "foreign feed".In order to squeeze into the market that should belong to the Chinese people, they started selling the "Hope Brand" No. 1 full-price pellet feed for suckling pigs. At the beginning, they insisted on adopting the strategy of "buy one get one free". Self-developed concentrated "Hope Essence" with very high technological content and of course high cost.Due to the fair price, unprofitable, and even loss-making marketing, the market was finally opened up in the cracks, and losses were turned into profits.After ten years of hard work, the Liu brothers started from the remote southwest inland, and then entered the whole country. They developed from a rural poultry feed farm into a modern group company with assets of more than 3 million. Their success lies in their accurate company market positioning .

From the above, we can see that, in fact, any company already has the right to occupy market share from the day its products are put on the market. The key issue is the level of market share.So from this point of view, it is undoubtedly the first principle of company positioning for operators to learn to grasp the market, take a series of measures to firmly occupy the market, and then start to gradually expand the market.Therefore, the company should be cautious about this principle when carrying out market positioning strategy, and at the same time dare to think and act.When it is time to make a bold attack, there are often surprises to win.

124. How operators discover the market

The so-called discovery of the market means that the company accurately analyzes the future consumer groups in the market through its own exploration and careful research, and then boldly develops new products suitable for this group and boldly adopts various marketing methods to push them to the market.By discovering the market, the company opens up a new path for its own survival and development, and sometimes even enables the company to launch a brand with strong competitiveness in a short period of time through this behavior, and embark on the road of famous brand in one fell swoop.

If operators want to succeed, they need to start from their own advantages in capital, technology, talents, etc., and strive to discover the market.Of course, there will definitely be many twists and turns and even setbacks in the process of discovering the market.

As long as the decision-makers of the company as the main body of the company have accurate self-knowledge and self-discovery of their own potential, it is not difficult to discover the market.

The so-called self-discovery means that the company has a very objective evaluation of itself, and everything starts from the company's actual ability to have a very accurate evaluation and positioning of the company's current position in the market competition.Of course, just as there is no absolute in anything, not every company that discovers the market will be successful. Therefore, while discovering the market, operators must also use it correctly and prudently. This is the principle of discovering the market.

125. How operators create markets

At present, with the development of information technology, if a company wants to have an advantage in survival and development, it must face the future.Turn this demand into reality through their own efforts, or simply operators have a kind of advanced imagination and forecasting ability, and can use their existing technology or capital to artificially create a certain demand that people do not understand at present.

In fact, once an unknown demand is created, an invisible market is formed.Therefore, the sustainable development of the company will also be solved with the formation and expansion of this market, which is the so-called manufacturing market.

Of course, to create a market, operators first need to strengthen the construction and reform of the company itself in all aspects.On the one hand, the progress of science and technology is undoubtedly a very important aspect, and a kind of dynamic and imaginative human environment within the company and the support from all aspects of the company are also very important.On the other hand, the conditional constraints from the objective economic environment are also an aspect that cannot be ignored, especially the impact of changes in some industrial structures and technological cycles.

Of course, from the perspective of operators’ subjective factors, the principle of innovation to the manufacturing market is a very important topic, because the manufacturing market develops to a higher stage after grasping the market and discovering the market, which is different from the company’s initial stage. Instead of occupying the market in stages, the company must use its own imagination to expand a brand new market and guide consumer demand at the same time.It can be said that the manufacturing market is a kind of denial of the company's past market, not following the old ways, and bravely pushing it to consumers, and using all means to induce consumers to consume in good faith.

126. Collecting intelligence is the basis of correct decision-making
Any marketing expert knows that accurate information is the precursor to success.The marketing manager is a master at collecting and analyzing intelligence.

In 1989, the managers of a certain beer company got the news that another company, its competitor, planned to put a large amount of beer produced by it into the local market.The local area has always been the company's stronghold, and losing market share in its stronghold is not only costly, but also very embarrassing.

The question was whether the company's local branch had enough capacity to meet the increased demand following its advertising breaks and promotions, a question answered by a competitive intelligence consulting firm using public data.The consulting firm consulted the Environmental Protection Agency's files on the company's wastewater discharge, and calculated its maximum production capacity based on the wastewater discharge of the rival company.Extrapolation revealed that the company did not have sufficient brewing capacity to successfully invade the local area.A company that had planned to spend millions of dollars to counter its promotional and advertising campaigns decided not to spend the money and put precious funds where they were more needed.

This story shows the three phases of competitive intelligence work:
Get the information - the amount of wastewater discharged.

Analyzing information - extrapolating competitors' production capacity based on emissions.

Exploitation of Information - The company has decided not to fight back for now.

It can be seen that the company's intelligence activities are very important, and it has become an essential part of the company's marketing activities.

[-]. Main content of market research

127. Conduct business environment surveys
The business environment survey includes the following three aspects:
1. Policy and legal environment survey

Investigate the policy and legal information related to your business and service projects, and find out whether the state encourages or restricts this business, and what management measures and means are in place.How the local government implements the relevant laws, regulations and policies of the country, and what are the favorable and unfavorable effects on your business.

2. Environmental investigation
Investigate the development status, development trend, industry rules and industry management measures of the industry you are operating and the service items you carry out.For example, if you are engaged in the beauty and hairdressing industry, you should understand the domestic and regional development of the industry, international and domestic fashion trends and advanced beauty technology, and what are the industry norms and management systems in this industry.Those who are engaged in the clothing industry should understand the development trend of the clothing industry, popular colors and styles, and the development trend of clothing technology. "Family has its own laws, and every business has its own rules." When you enter a new business, you should fully understand and master the information of the industry, so as to help you realize the transformation from "outsider" to expert as soon as possible.

3. Macroeconomic survey
Whether the macroeconomic situation is prosperous or not directly affects the purchasing power of ordinary people.If business performance is generally not good and the economy is in a downturn, your business will be difficult to do. On the contrary, business will be easy to do. This is called the big climate affecting the microclimate.Therefore, mastering the information of the general climate is an important parameter for doing a small business well.When the economy is booming, it is advisable to adopt a proactive management policy. When the economy is down, there are profitable industries and potential market opportunities. The key is how to grasp and judge.

128. Conduct market demand research

If a certain product or series of products are to be produced or distributed, the market demand for this product should be investigated.That is to say, through market research, the market positioning of the product is carried out.

For example, if you distribute a certain household appliance, you should investigate the market demand for this household appliance, whether there are identical or similar products, and what is the market share.If you want to provide a professional home service project, you should first investigate the residents' understanding and demand for this project, how big the demand is, whether other companies are also providing the same service project, and what is the market share.

Another important content of the market demand survey is the market demand trend survey.Understand the long-term market demand for a certain product or service item, and understand whether the product or service item is gradually recognized and accepted by people, and the demand prospect is broad, or it is gradually eliminated by people, and the demand is shrinking.Learn about the development trend of the product and service project in terms of technology and operation, etc.

129. Conduct customer surveys
The customer survey includes two aspects.

1. Customer demand survey

For example, who are the customers (or social groups, enterprises) who buy a certain product (or service item), and what kind of satisfaction and demand (such as utility, psychological satisfaction, technology, price, delivery date, etc.) they hope to get from it? sense of security, etc.), whether or how some current products (or service items) can meet the needs of customers, and so on.

2. Customer classification survey
Focus on understanding the number, characteristics and distribution of customers, clarify target customers, and master their detailed information. If it is a certain type of enterprise and unit, you should understand the basic situation of these units, such as purchase channels, procurement management mode, telephone number, office Address, the specific situation and scope of authorization of the person in charge of a certain business, the degree of demand for certain products and service items, purchasing habits and characteristics.If the customer is an individual consumer, you should understand the type of consumer group, that is, the approximate age range, gender, consumption characteristics, money-spending standard of the target customer, the degree of demand for a certain product and service item, purchase motivation, purchase psychology, and usage habits.Mastering this information will prepare you for targeted business development.

130. Investigate competitors

Under the conditions of an open market economy, it is too difficult to do exclusive business. Before you open your business, there may be someone who has done the same or similar business. These are your realistic competitors.Maybe your business is brand new and unique. When you first started your business, you had no real competitors. Once your business flourishes, many people will learn your business and join your competitors Ranks, these are your potential opponents.

"Know yourself and the enemy, and you will be able to fight a hundred battles." Understand the situation of competitors, including the number and size of competitors, distribution and composition, advantages and disadvantages of competitors and marketing strategies, so that they can occupy a favorable position in the fierce market competition. , and adopt some competitive strategies in a targeted manner, so that I have what others don't have, I am superior to others, and I am superior to others.

131. Conduct marketing strategy research

Focus on the investigation to find out what are the main promotion methods, marketing strategies and sales methods for operating a certain product or launching a certain service project in the market.

Such as sales channels, sales links, the shortest purchase distance and the smallest wholesale link, advertising methods and key points, price strategies, what promotional methods are there, prize sales or discount sales, what are the sales methods, wholesale or retail, consignment or MLM, monopoly Or franchising, etc., investigate whether these business strategies are effective, what are their shortcomings and deficiencies, so as to provide a basis for you to decide which business strategy and business methods to adopt.

[-]. Scope and method of investigation
132. Scope of market research

According to different survey scopes, market surveys can be divided into three types: market surveys, sample surveys and typical surveys.

1. Market survey
That is to conduct a one-time comprehensive survey on the market. This kind of survey is large in volume, wide in scope, high in cost, long in cycle and difficult, but the survey results are comprehensive, informative and reliable.There is no need for such a large-scale market survey for some businesses that are generally laid-off workers.

2. Sample survey
Infer an overall situation from this.For example, when distributing a kind of food and supplies for primary school students, it is entirely possible to choose one or two classes of primary school students in one or two schools to conduct investigations, so as to infer the market demand of the primary school students for this product.

3. Typical Survey
That is to select some typical individuals from the population of survey objects for investigation and analysis, and infer the general situation of the population accordingly.Such as the investigation of competitors, that is, one or two typical representatives can be selected from many competitors, deeply studied and understood, and analyzed its internal operating mechanism, advantages and disadvantages of operation and management, price level and mode of operation, and it is not necessary to analyze all competitors. Competitors all conduct investigations, which is difficult and takes a long time.

133. Methods of market research

According to different survey methods, market research can be divided into: interview method, observation method and test marketing or trial operation method.

1. Access method

That is to formulate the survey items in advance, and ask the respondents through interviews, letters and visits, telephone calls, etc. to obtain the required survey materials.This kind of survey is simple and easy, and sometimes it is not very formal. When chatting with people, you can insert your survey content into it, and conduct market research unconsciously.

2. Observation method

That is, the investigators visit the shopping site of customers, such as stores and trading markets, and visit the site of service projects, such as in restaurants and on buses, to directly observe and record the categories of customers, purchasing motives and characteristics, consumption patterns and habits, prices and service levels of merchants , business strategies and methods, etc., the first-hand information obtained in this way is more authentic and reliable.It should be noted that your investigation behavior should not be discovered by the operator.

3. Test marketing or trial marketing
That is to say, for businesses that are uncertain, trial operation or product trial sales can be conducted to understand customer feedback and market demand.

(End of this chapter)