Data Required for a Comprehensive Market Study

A successful market study relies on the collection of a comprehensive set of qualitative and quantitative data. The information below should be gathered to cover the main analytical aspects applicable to any type of business.

1. Identification of Competition (Direct and Indirect)

It is essential to identify direct competitors (offering similar products/services) and indirect competitors (offering substitute solutions that meet the same need) in the target market. For each of these competitors, detailed data should be gathered:

• List of Direct Competitors: Companies offering an offer similar to yours (same primary product or service). Identify their name, size, establishment date, and primary location.
• List of Indirect Competitors: Players offering alternative products or services that may meet the same need as your offering. For example, a pizzeria will have other types of fast-food restaurants also offering pizzas as indirect competitors.
• Key Information on Each Competitor: For each competing organization (direct or indirect), gather information such as:
  • Products and Services Offered – Range of products/services, features, and perceived quality of their offering.
  • Pricing and Price Positioning – Price level, discount policies, positioning (entry-level, mid-range, premium).
  • Estimated Market Share – Relative weight of the competitor in the market (market shares, sales volume, or number of customers).
  • Distribution Channels – Sales methods used: physical stores, online commerce, distribution via partners, etc.
  • Communication Strategies – Media and digital presence (social networks, advertisements), brand image, competitive advantages highlighted, potential promotions.
  • Location and Coverage – Geographical areas served, reach (local, regional, national, or international) of their activities.
  • Customer Satisfaction and Reputation – Online reviews, customer testimonials, level of customer loyalty, and quality of customer service.
• Competitive Data Sources: Information on competitors can be gathered from various sources. Gather information via their official websites, social networks, online review sites, physical visits to their points of sale, or by consulting existing market studies. You can also utilize:
  • Business directories and official registers (e.g., the Sirene database from Insee, which lists over 10 million companies and is useful for obtaining information on competitors, or the Infogreffe register).
  • Annual reports and press releases published by competitors, to obtain financial and strategic data.
  • Sector-specific studies conducted by specialized firms (e.g., Les Échos Études, Xerfi for the French market) or by professional organizations in the sector.
  • Competitive intelligence tools (Google Alerts, specialized newsletters, web tools like SimilarWeb, Semrush, etc.) to monitor competitor news (product launches, marketing campaigns, website developments).
  • Field surveys (mystery shopping, in-store observation, participation in trade shows) allowing for direct collection of information on competitors’ offerings and behavior.

2. Estimating Demand in the Target Market

This part of the study aims to quantify and qualify the demand from potential customers for your product or service. The data to be collected include:

• Market Size: Estimation of the overall market volume in value (total sector revenue) and/or in volume (quantities of products or services sold annually). For example, identify the total number of units consumed or the number of users in the target market.
• Number of Potential Customers: Evaluate the number of potential buyers or client entities in the defined market area, as well as the evolution of this customer base over time (growth or decline).
• Growth Rate and Demand Trends: Analyze the recent market history (average annual growth) and projected developments. Is there sustained demand growth, stagnation, or decline? Identify the current trends influencing consumption in this market (e.g., growing enthusiasm for eco-friendly products, transition from physical to digital, etc.).
• Market Segmentation by Customer Base: Break down demand according to relevant segments. For a B2C target, segment by demographic criteria (age, gender, income), geographic (region, urban/rural density), or behavioral (purchase frequency, loyalty). For a B2B target, segment by industry sector, company size, etc. The objective is to identify the most promising customer segments and estimate the share each represents in total demand.
• Demand Seasonality: Determine if sales show significant seasonal fluctuations. For example, are there seasonal peaks (periods of high demand like holidays, vacations) or recurring troughs throughout the year? This information helps to forecast activity and adapt the offering accordingly.
• Purchasing Behaviors: Understand how customers purchase in this market. This includes average purchase frequency, the buying journey (online, in-store, via influencers), decision criteria (price, quality, brand, availability…), and the overall satisfaction level of consumers with current offerings. Also identify the main purchase motivations as well as the barriers (hesitations, perceived obstacles) that may limit demand.
• Unmet Demand (Opportunities): Identify potential unmet needs in the market. For example, customer segments whose expectations are not fully met by existing offerings, or emerging consumption trends for which the supply is still insufficient. These market gaps represent opportunities to be exploited.
• Data Sources for Demand:
  • Public Statistics: Macroeconomic and sectoral data provided by public bodies (e.g., Insee in France, Eurostat at the European level, OECD for international comparisons). These sources offer figures on consumption, demographics, income, etc., useful for estimating market size and its evolution.
  • Databases and Market Studies: Study reports available via firms (e.g., Euromonitor, Statista, Nielsen) or sectoral observatories. They often provide statistics on market size, market shares, consumption trends by segment, etc.
  • Field Surveys: Conduct surveys or questionnaires with a sample of the target population to directly assess interest in your offering, estimate purchase intent, anticipated purchase frequency, average allocated budget, etc. Survey methods may include individual interviews, online surveys, focus groups, or panel studies.
  • Internal Data: If the company already exists or if you have a website or a pre-launch page, analyze internal data (sales history, web traffic via Google Analytics, conversion rates, customer feedback) to detect indications of current and potential demand.
  • Online Tools: Use tools like Google Trends to measure user interest in keywords related to your market (evolution of search volumes, seasonal peaks), or Google Keyword Planner to estimate the monthly search volume for terms related to your product/service.

3. Identification and Analysis of New Market Trends

A good market diagnosis must integrate emerging trends that could influence supply and demand in the short or medium term. This involves examining the market environment and its evolution to detect significant change factors:

• Technological Trends: Technological innovations likely to transform the sector or products (e.g., increased digitalization, automation, artificial intelligence, new materials). What are the upcoming technological developments and their frequency? What aspects of the business could they disrupt? For example, the rise of a new technology could create new uses or render certain existing offerings obsolete.
• Societal and Demographic Trends: Evolutions in consumer behavior and society. Identify changes in customer lifestyles, values, and preferences. For example: a growing appeal for eco-friendly products, population aging, urbanization, or new consumption habits (sharing, renting rather than buying, etc.). These underlying trends can open new markets or transform how consumption occurs in the existing market.
• Regulatory and Legal Developments: Legislative or normative changes likely to affect the market. For example, the adoption of new environmental regulations, stricter safety standards, laws specifically governing the sector of activity. Similarly, monitor public policies (subsidies, entry barriers, taxation) that could foster or hinder market development.
• New Economic Models: Appearance of innovative commercialization methods or business models in the sector. For example, transition from a classic sales model to a subscription or rental model, collaborative economy (resource sharing among users), freemium, etc. Analyze whether these emerging models are gaining traction and how they meet customer needs differently.
• Consumption and Market Trends: Study market signals indicating new consumption habits. For example, a rapidly growing distribution channel (mobile online sales), new service expectations (personalization, ultra-fast delivery), or changes in the purchasing journey (increased influence of social networks or influencers in the purchasing decision). Also identify weak signals (first manifestations of emerging behaviors in a user niche) that could foreshadow more general trends.
• PESTEL Analysis: A useful framework for not forgetting any factor is the PESTEL analysis (Political, Economic, Sociocultural, Technological, Ecological, Legal). By reviewing these 6 dimensions, one can draw a panorama of macro trends that can influence the market. For example, the Political dimension examines governmental stability and economic policies, the Economic dimension considers the economic situation (growth, unemployment, purchasing power), etc.
• Data Sources for Trends:
  • Media and Sectoral Monitoring: Regularly consult specialized press, expert blogs in the field, publications from research institutes or consulting firms (e.g., annual reports from McKinsey, Gartner, Forrester on sectoral trends). These sources offer analyses of recent innovations and future prospects.
  • Online Monitoring Tools: Set up alerts (e.g., Google Alerts) for keywords related to your market to be notified of new developments. Use content curation platforms (such as Feedly, Scoop.it) to follow sectoral news feeds. Specialized social listening or strategic monitoring tools (Brandwatch, Meltwater, Sindup, etc.) also allow for detecting emerging trends by monitoring discussions on social networks and the web.
  • Participation in trade shows, conferences, and webinars in the sector allows for direct observation of innovations presented by market players, listening to current concerns and interests of the profession, and networking to gather informal insights.
  • Barometers and Observatories: Many sectors have regular barometers (e.g., consumption barometer, digital trends observatory, etc.) published by federations, institutes, or public bodies. These periodic studies provide quantified indicators on the evolution of consumer expectations and market practices.
  • Web Data Analysis Tools: Utilize Google Trends to identify the evolution of public interest in specific topics (rising keywords indicating an upward trend). Platforms like TrendWatcher, Mintel Trends, or TrendHunter also offer summaries of innovations and new consumption habits observed internationally.

4. Definition and Understanding of Potential Customer Targets (B2b and B2c)

This involves precisely identifying who your target customers are, whether they are end consumers (B2C) or business clients (B2B), and understanding their characteristics, needs, and behaviors. A thorough understanding of your potential targets allows for optimal calibration of your offering and marketing strategy. The data to be gathered include:

• Target Demographic Profile (B2C): Determine the basic characteristics of your target individual customers. What is the typical sociodemographic profile? (Age range, gender, income level, occupation, education level). Where do they live (geographic area, urban/rural environment) and what is their lifestyle? For example, knowing whether your core target consists of women aged 25-34 in an urban environment or retirees in a rural area will lead to different choices.
• Target Firmographic Profile (B2B): If your clients are other businesses, identify the key characteristics of these target companies. Which sectors of activity are you targeting? Are they primarily SMEs or key accounts (size measured by headcount or annual revenue)? Does their geographic location matter (local vs. international market)? It is also necessary to identify who the decision-makers or influencers to address are within these organizations (e.g., purchasing director, marketing manager, CEO).
• Target Audience Needs and Motivations: Analyze the problems your target customers face that your offering could solve, as well as their underlying purchase motivations. What are their primary expectations for a product/service like yours (time savings, financial savings, social status, enjoyment, security, etc.)? Conversely, identify their potential barriers to purchase: lack of trust, perceived high price, established habits with a competing solution, etc. Understanding what drives your potential customers to buy (or what holds them back) is crucial for adapting your value proposition.
• Purchase Behaviors and Customer Journey: Study how your target audience buys or would buy a product like yours. Through which channels do they get information (online advertising, word-of-mouth, media, influencers) and where do they make the purchase (physical store, e-commerce site, via a salesperson)? Are there specific moments when the purchase is triggered (usage occasions, life events)? Also analyze their potential purchase frequency, the average budget they might allocate to it, and their habits of comparing different offers.
• Psychographic Segmentation: Beyond objective criteria, refine your understanding of your customers using psychographic criteria: lifestyle, values, interests, opinions. For example, targeting consumers sensitive to ecology and sustainable development, or buyers primarily attracted by technological innovation. For B2B clients, this can correspond to the corporate culture or the strategic priorities of the client company (innovation, cost reduction, brand image, etc.). These elements help adapt communication and marketing positioning.
• Feedback and Satisfaction: If you already have initial customers (or a test sample), collect their feedback. Their comments, satisfaction rate, and any criticisms or suggestions provide insights into adjustments to be made and arguments to highlight. Indicators such as the Net Promoter Score (NPS), post-purchase evaluations, or customer service feedback are valuable for understanding the target audience’s perception of your offering.
• Data Sources on the Target Customer:
  • Public Data: Utilize information from public sources on the population. In France, for example, INSEE provides census data and household studies (age distribution, income, family composition, etc.), as does Eurostat at the European level. Regional data (local observatories) can refine the understanding of a specific catchment area. For businesses (B2B), databases like Sirene or professional directories provide a list of companies by sector and size, which helps quantify a target.
  • Market Studies and Panels: Consult consumer studies already conducted by institutes (Kantar, Ipsos, Nielsen, etc.) covering habits and preferences in your sector. These studies can reveal customer typologies. Continuous panels (e.g., distributor panel, consumer panel) offer quantitative data on who buys what.
  • Customized Surveys and Polls: Conduct your own questionnaires with the target audience to validate their characteristics and expectations. For example, an online survey distributed via social media or email can shed light on the profile of individuals interested in your concept. In-depth interviews or focus groups with representatives of the target audience allow for deeper exploration of their motivations and direct feedback on a proposed offering.
  • Digital Data and CRM: If you have an online presence, use analytical tools (Google Analytics, Facebook Insights, LinkedIn Analytics) to obtain demographic and behavioral data on your audience. These tools indicate, for example, the dominant age group of your visitors, their interests, or how they found your site. Similarly, if you already have a CRM with leads/customers, analyze this data (industry sector of interested B2B clients, profile of initial B2C buyers, conversion rate per segment, etc.).
  • Social Networks and Forums: Monitor what your target audience says on social or community platforms. Discussions on forums, comments on competing products, and questions asked online are a goldmine for understanding the concerns and language of your potential customers. Targeted social listening on keywords related to your market or brand can reveal topics that engage your target audience and their perception of current offerings.

Conclusion

In summary, a comprehensive market study requires collecting a wide range of data covering competition, demand, the environment (trends), and the target customer base. This data represents the essential inputs for analyzing the market and guiding strategic decisions. It is important to cross-reference various sources and ensure the reliability of the information collected.

Finally, the market study must combine quantitative elements (figures, statistics) and qualitative elements (opinions, motivations) to provide a rich and nuanced view of the market. With these elements in hand, the company – whether nascent or established – will be able to validate the opportunity of its offering and best adapt its positioning to reach its target audience within a given competitive context.

InnovFast

See Full Bio