Effective market research should answer several key questions:
1. Who is the Target Audience? Understanding the demographics, preferences, and purchasing behavior of the target audience is crucial for developing a product or service that appeals to them.
2. What is the Market Size? Determining the potential size of the market helps in assessing the feasibility and scalability of the business idea.
3. Who are the Competitors? Identifying direct and indirect competitors and understanding their strengths and weaknesses allows entrepreneurs to differentiate their offerings.
4. What are the Market Trends? Analyzing current and future trends helps in making strategic decisions that align with market movements.
5. What are the Customer Pain Points? Identifying the problems and challenges that potential customers face can provide insights into how to create a product or service that addresses these issues effectively.