To achieve success in the business, it is imperative to have a clear understanding of the customer, ongoing market trends, competition, etc. and the best way to get all this information is through Market research. Many businesses either ignore or fail to understand the importance of market research. These businesses either end up losing their customers in the long run or in extreme cases a complete shutdown.
Today’s market is highly competitive. Survival has become very challenging. Companies who carry out a thorough and regular market research stay for longer duration.
Defining Market Research
Before understanding the importance of market research, it is very important to understand ‘What is Market Research?’
Use of any specific process or a set of processes to gather information regarding companies or people. This formation is then analyzed by businesses to understand their customers, markets, ongoing trends in the industry and competition. Companies can use market research at any stage of their business’s life cycle be it the stage of pre-launch, at the time of launching or at the time of updating the product or service. Market research helps the companies in understanding the type of customer they want to target.
Objectives of Your Market Research
Market Research is a broad term. Different companies conduct market research for diverse purposes. Hence, it is very important to lay down the objectives of your market research. These objectives will not only give you a clear understanding of your ultimate goal but will also help you in selecting the types of market research that you should use to achieve those goals. There are two major kinds of market research:
Primary Market Research
This kind of market research can be carried out by an individual or business to fulfill their own specific requirements. In this, the information is collected directly from the source. The data is collected via conducting postal and e-mail surveys, telephonic interviews, by observation, etc. These market research reports are used for purposes like monitoring sales, accessing competition in the market, understanding customers’ preferences, etc.
Secondary Market Research
In these kinds of market research, the companies collect information from secondary sources like government data, newspaper reports, reports of trade associations, reports of existing studies, etc.
Once you have selected the kind of market research, the next question that pops up in your mind is: How to get most out of your market research? In simple terms how to make your market research a success? Well, market research is considered as successful when it fulfills its objectives. Understanding the role and importance of market research is not sufficient. Conducting successful research is also important. Below are some tips which may result in successful market research.
Key Steps of Successful Market Research
Check the previous existence of the market research you are planning to conduct. There is no point in conducting market research, which has already done earlier. This will further save time, money and effort.
If you found the existing data, then analyze on the basis of your objectives and requirements.
Find out the methods through which you can use that data.
In case the research is not done earlier, you might need to conduct new market research. If you are planning to go for primary market research then, you need to check with whom you want to carry out this research.
In 2019, various companies including new and existing, big and small, have understood the importance of market research. Still, some businesses especially individual and small-scale businesses overlook market research as they find it a long and time taking process.
4 Important Things That Market Research Can Do for Your Business
Provides A Better Understanding of Your Target Customers
Buyers forms the priority for all kinds of businesses. The more you know about your customers, the better it will be for your business. Market research will not only help you in understanding your customer’s requirements but will give you a full insight about your customer’s preferences and buying behaviour which will help you to manage your projects and products efficiently. You can use all this information in planning your sales as well as marketing strategies.
Helps in Understanding the Approach and Strategies Used by Your Competitor
Every individual or company is your competitor who tries to win your existing or potential customers. Successful businesses never take their competitors lightly. If you want to be ahead of your competitors, it is important to find out their strengths, weaknesses, marketing strategies used by them, etc. Regular market research will also keep you updated if any new player is planning to enter the market or if your existing customer plans to launch a new product or is planning to update the existing one. You can use this information for planning new strategies to fight your competitors.
Reduces the Risk of Failure
use of market research at various levels of business turns out to be very beneficial for the business. For example: If you are at a phase of launching a new product you can use market research to find out customer’s reaction at the pre-launch level. On the basis of the response you get for your new product, you can make improvements (if needed) and can plan your sales and marketing strategies accordingly. Similarly, if there is a continuous drop in your product’s demand than you can use market research to pinpoint the exact area of concern. Once the problem is found, you can work on it and save yourself from going out of business.
Helps in Planning Promotion Strategies
Market research has become a crucial part of every business. Your business might be based on an excellent idea, but to sustain, you need to have a continuous supply of the information related to your market, customer, and competition.