Research the market before making the decision.
Define the opportunity, customer and location as specifically as possible. The prompt is designed to separate real evidence from assumptions and identify what still needs to be validated.
Act as an experienced market research analyst and business strategist. TASK: Conduct a structured market research analysis for the business, product, service or opportunity described below. BUSINESS / IDEA: [Describe the business, product or service.] TARGET MARKET: [Country, city, region or online market.] TARGET CUSTOMER: [Describe the expected customer.] PROBLEM / NEED: [What customer problem or need does this address?] BUSINESS MODEL: [Example: service business, e-commerce, subscription, marketplace, physical retail, digital product.] EXPECTED PRICE RANGE: [Add expected pricing if known.] AVAILABLE BUDGET: [Optional.] KNOWN COMPETITORS: [List competitors if known.] RESEARCH GOAL: [Example: validate demand, understand customers, analyze competition, explore pricing, identify opportunities.] AVAILABLE INFORMATION: [Paste any existing research, survey results, market data, competitor information or observations.] CONSTRAINTS: [List important limitations such as budget, location, regulations, resources or time.] RESEARCH REQUIREMENTS: 1. MARKET DEFINITION - Clearly define the relevant market. - Separate the broad market from the specific addressable segment. - Explain which customer group should be researched first. 2. CUSTOMER PROBLEM Analyze: - What problem or need exists? - How important is it? - How frequently might customers experience it? - What alternatives are they currently using? - What could motivate them to switch? 3. TARGET CUSTOMER Build practical customer segments based on relevant factors such as: - Customer type - Needs - Buying behavior - Budget sensitivity - Location - Usage situation - Decision criteria Avoid creating fictional demographic details without evidence. 4. DEMAND SIGNALS Identify evidence that could indicate real demand, including: - Search behavior - Existing competitors - Customer discussions - Reviews - Marketplace activity - Industry reports - Social media discussions - Requests for solutions - Existing spending behavior Clearly separate verified demand evidence from assumptions. 5. COMPETITIVE LANDSCAPE Analyze: - Direct competitors - Indirect competitors - Alternative solutions - Typical positioning - Customer strengths and complaints - Possible gaps in the market Do not invent competitor details. 6. CUSTOMER PAIN POINTS Identify likely pain points and classify them as: - Functional - Financial - Time-related - Convenience - Trust - Quality - Service - Knowledge / skill Label assumptions clearly when customer evidence is unavailable. 7. PRICING RESEARCH Evaluate: - Competitor pricing where reliable information is available - Customer price sensitivity - Possible pricing models - Entry-level versus premium positioning - Factors that could justify a higher price Do not invent current market prices. 8. MARKET TRENDS Identify relevant: - Customer behavior changes - Technology changes - Industry developments - Regulatory changes - Distribution changes - Emerging opportunities Separate established trends from speculation. 9. MARKET GAPS Look for gaps such as: - Underserved customer groups - Poor customer experience - Complicated existing solutions - High prices - Limited availability - Missing features - Slow service - Lack of specialization - Weak local solutions Explain what evidence would be needed to confirm each gap. 10. BARRIERS TO ENTRY Consider: - Startup cost - Skills - Technology - Supplier access - Customer acquisition - Regulations - Trust - Existing competition - Operational complexity 11. RISKS Identify major risks and classify them as: - High - Medium - Low Explain why each risk matters. 12. OPPORTUNITY ASSESSMENT Evaluate: - Strength of customer problem - Evidence of demand - Competitive pressure - Differentiation potential - Pricing potential - Ease of reaching customers - Startup difficulty - Scalability 13. VALIDATION PLAN Recommend low-cost ways to test the opportunity before making a major investment. Include possible methods such as: - Customer interviews - Surveys - Landing page tests - Small pilot service - Marketplace listing - Pre-orders - Social media tests - Competitor review analysis - Search-demand research 14. RESEARCH GAPS List important information that still needs to be verified. 15. FINAL ASSESSMENT Give a balanced conclusion based on the available evidence. Use one of these ratings: - STRONG MARKET SIGNAL - PROMISING — NEEDS VALIDATION - UNCERTAIN — MORE RESEARCH NEEDED - DIFFICULT MARKET - WEAK MARKET SIGNAL Explain the reasoning behind the rating. OUTPUT FORMAT: 1. Executive Summary 2. Market Definition 3. Target Customer 4. Customer Problem 5. Demand Signals 6. Competitive Landscape 7. Customer Pain Points 8. Pricing Considerations 9. Market Trends 10. Market Gaps 11. Barriers to Entry 12. Key Risks 13. Opportunity Assessment 14. Low-Cost Validation Plan 15. Research Gaps 16. Final Market Assessment IMPORTANT: - Do not invent statistics, market size, prices, competitors, customer behavior or trends. - Clearly distinguish verified facts from assumptions. - If current market information is required but unavailable, identify exactly what should be researched. - When web research is available, prioritize recent and credible sources. - State when information may be outdated. - Avoid presenting estimates as confirmed facts. - Focus on evidence that can help make an actual business decision.
Use the prompt effectively.
Define the market narrowly
A specific customer, location and problem usually produces more useful research than asking about a very broad industry.
Add what you already know
Include competitors, customer comments, prices, observations or previous research so the analysis can build from real evidence.
Separate evidence from assumptions
Market research becomes more useful when confirmed demand signals are clearly distinguished from ideas that still need validation.
Validate before investing
Use the research to design small, inexpensive tests before committing significant money, inventory or development time.
From business idea to research plan.
Idea: Inventory management setup service for small businesses.
Market: Colombo, Sri Lanka.
Customers: Small retailers, distributors and e-commerce sellers.
Problem: Businesses using spreadsheets or manual records struggle with stock accuracy and reorder planning.
Business model: One-time setup fee plus optional monthly support.
Budget: Low startup budget.
Goal: Determine whether the service is worth testing.
Market focus: Start with small businesses that already hold meaningful inventory but are not ready for a large ERP implementation.
Core hypothesis: Some businesses may need better stock control but lack the budget, knowledge or complexity required for enterprise software.
Demand validation: Interview business owners and review local discussions before assuming the problem is widespread enough to support a paid service.
Competitive research: Compare accounting software providers, inventory apps, ERP implementers, freelance Excel services and manual alternatives.
Low-cost test: Offer a clearly defined inventory audit and tracker setup package to a small number of businesses before developing a larger service.
Get stronger market evidence.
Research a decision
Instead of asking for everything about a market, explain what decision the research needs to help you make.
Current data matters
Competitors, prices, regulations and customer behavior can change. Verify time-sensitive findings using recent reliable sources.
Look for behavior, not enthusiasm
Customers saying an idea sounds useful is weaker evidence than customers already searching, paying or actively trying to solve the problem.