Marketing research is systematic gathering to record and analyse the qualitative and quantitative data about an issue relating to marketing your products and services. The goal of marketing research is to identify and assess how changing elements of the niche business marketing mix impacts customer behaviour.
Most aspiring business owners are often misled or misguided on the topic of how to do market research for a startup business. The path most unsuspecting business owners take is by ending up at a keyword tool or database to begin their market search.
According to a keyword research expert and founder of one of the leading keyword research services on the internet, he said that with firsthand experience that keyword database are not the first place to look nor should be even considered.
Here is why
The primary keyword databases that are currently available to the general public only give search results counts on a limited amount of data that accounts for 1 percent to 2 percent of the actual market researches people do globally on the Internet.
Most people can only predict (emphasis added) the real majority of searches that are being done on the big 5 search engines such as
- Ask.com which hold 97%-98% of the keyword data.
Most importantly, keyword research for market research purposes only shows what keyword phrases people are using in the search engines to search for answers, not what people actually buy on the internet. Just because a group of people search for specific terms or brand names does not mean that’s what they purchase.
That’s a key distinction many business owners tend to gloss over. When looking for a profitable niche business, your primary focus should be looking for proof of a group of hungry and rabid buyers that want to exchange their money for a service or product (information, physical or digital). Without this crucial qualifier, you may have the greatest product in the world, but you may be lacking a market to sell it to.
This article will present a number of great sources to look at which will give you a running start to uncover a truly, profitable marketplace existing before you go for the gold and put all your resources into a website, product creation or expenditures toward some sort of online property.
Once you establish that you have located a niche market that contains signs of adequate commerce moving through it, you then have a worthy reason to look further into a keyword research service to find out what keyword phrases people use to find the market you have chosen.
How to do Market Research for a Profitable Niche Market
Market research allows you to meet your potential customers where they are. As the world is becoming louder and demands more and more of people’s attention, this proves invaluable. By understanding your customer’s problems, pain points, and desired solutions, you can aptly craft your product or service to naturally appeal to them.
One of the best ways to find signs of a truly profitable marketplace is by looking for a magazine in that industry. If a publisher has enough money to print and circulate a full-colour magazine, there are most likely advertisers that support the funding of the magazine’s ability to circulate all the copies which most likely means there are sales being made by those advertisers.
Now, this may bring you to question whether there is too much competition in a marketplace with so many advertisers selling in a magazine. In fact, it’s a great sign to have competition which means there is an adequate amount of customers to sell to and a portion of a sizable pie to be had in that marketplace. If there is very little competition, you may
- Not have adequate product being sold in that space; or
- Not have a marketplace, to begin with
The larger the competition is, the larger the piece of revenues you will be able to grab. Without having to leave your seat, you can hop on over to Magazines.com and look through the number of different categories to find a profitable topic or industry in which to start an online concern.
One of the things you’ll want to focus on is the number of subscribers each magazine has and how long the magazine has been in print for stability purposes. Make a list of magazines you want to look into and then go hunting for them at one of those large dedicated newsstands that covers just about every magazine on every topic.
To get a better look at what people are buying in the online world, you will need to ultimately decide whether you wish to represent physical or digital products.
Through Physical Products
There are 2 incredibly huge marketplaces that are massively trafficked, move a lot of products and are great places to find what people are really buying. Let’s start with the first huge marketplace,
At eBay, you can look through a list of the most popular products people are buying through auctions or from eBay stores that vendors have set up. To see a visual path on how to locate the most popular products, please use the reference below to view the extended version of this article.
Another really big marketplace is Amazon.com and it’s not just for ebooks. You can find just about any product and any brand product that is a mover and shaker in the world. Again, look at the most popular products in those categories that catch your attention.
If you wish to sell products of a digital nature that does not require inventory and which usually carries high-profit margins for affiliates, you’ll want to check out the Clickbank digital marketplace that ranks product sales from highest to lowest sellers in each category.
Just browse through categories at Clickbank.com and you’ll instantly find the top sellers of digital info products, software and subscription services which are located right at the top listings. See also the reference section below for a link to the extended version of this article for visual aids and more detailed guidance.
Once you gather adequate market research, you can do one of the following:
- Create an online store that ships out physical products and merchandise
- Sell merchandise through eBay auctions or their online stores (requires inventory)
- Create a site that represents vendors as an affiliate
- Create your own product, service or software for a digital product
Having used at least two of the 4 market research ideas above, you can be assured that you have conducted proper market research to uncover “proof positive” what people are buying and, thus, a profitable niche market.
You can then quickly build out a non-complex website with an easy digital product offering, find some low-cost keywords to use during your Google Ads Pay-Per-Click campaign with a minimum spend of $50 to check the market and see if you’ve got a winner.
I believe this market research information could arm you with enough information to urge you to move toward finding a niche market with bottomless profits. You can also download and read these free-market research eBook to start generating over 6 figures of income annually.
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