Understanding whether the product or service you intend to launch, has a need in the market you’re about to enter or not, is clarified through market research. Every business and idea must be validated using some form of market research to ensure that you don’t end up wasting both time and money on a product or service that your potential customers don’t want.

In order to do this, you need to break down your target market into smaller parts to help you understand your customers, their needs, and wants. An analysis will help you understand roughly what is your market size, the behaviour of your customers in that market (how they spend, how often they spend, and how much they spend etc.)

This can further be categorised into groups based on age, gender, and any other factors relevant to your product or service. For example, if you’re selling cosmetics, it is absolutely crucial that you understand the age, define the gender, and spending capacity of your target consumer among other things, to identify whom to market to and how to lay out your marketing strategy.