What is E-Commerce Market Research?
For any business aiming to achieve success in e-commerce, it is crucial to conduct e-commerce market research using the right tools and statistics. E-commerce market research is a process that involves tracking potential customers based on their preferences, consumption habits, and pricing approaches, and then developing strategies based on the findings. To understand this process fully, it is essential to start with various definitions:
What is Target Market? What is the Definition of Target Market? If your e-commerce site does not have a wide range of products to cover every item, you need to focus on potential customers who are more likely to purchase your products. The Target Market is the entire group of customers who show more interest in the products and services offered on your e-commerce site and are predicted to be more willing to purchase, based on statistical data.
What is E-Commerce Target Market Selection? E-commerce target market selection is the process of identifying the target audience for selling your products and services. This step is so critical that, after selecting the target market, you can analyze your competitors operating in that market, assess the market size, and perform profitability analyses. Target market selection includes segmentation, targeting, and brand positioning, and allows you to develop marketing strategies tailored to the defined audience in the product, price, and promotion aspects of your marketing mix.
What are the Strategies for Target Market Selection in E-Commerce? There are generally four different strategies for target market selection in e-commerce:
-
Mass Market (Undifferentiated Marketing) Strategy This strategy focuses on the entire market rather than the differences within the audience. It is a strategy where the seller aims to attract customers who do not seek differentiation by offering products within certain lines.
-
Multiple Market (Differentiated Marketing) Strategy If you want to achieve a stronger position and larger sales volumes in the e-commerce field, this strategy is specifically developed for that purpose. Instead of targeting a single market, it is possible to develop different market goals and marketing strategies for various product groups.
-
Single Market (Concentrated Marketing) Strategy The single market strategy focuses on only one segment of a segmented market according to specific statistics, considering that segment as the target e-commerce market.
-
Niche Market (Micromarketing) Strategy This strategy involves breaking down the market into its smallest units to identify gaps and release products suited to those gaps. Although this area is often seen as low-volume by large e-commerce sites, risks can suddenly increase even when there seems to be no risk. Therefore, collecting and analyzing data to create the right product diversity is crucial for e-commerce companies using this strategy.
How to Conduct Target Market Research for E-Commerce Sites?
-
Primary Research This involves analyzing data obtained using tools that help generally recognize the target market audience. Tools such as surveys, target audience analysis, and social network analysis are used. Since customer focus is essential, past sales data is also included in the analysis.
-
Secondary Research This process heavily relies on external sources when researching the target e-commerce market. It involves examining data related to customers, competitors, prices, products, and sectors from other companies' research results and sometimes using reports published by public institutions.
Have you reviewed Comwize’s e-commerce ERP software? E-commerce companies using Comwize can easily access many statistics needed for defining target audiences and developing marketing strategies. With the historical data and current reports provided by Comwize, you are one step closer to success.
