Business market research is the process of collecting data to determine whether a particular product/service will satisfy the needs of your customers.
With effective market research, your company can gain invaluable information about your competitors, economic shifts, demographics, the current market trends and the spending traits of your customers.
Market research while daunting and can be a lot of work it also provides many benefits.
It takes the guesswork out of marketing and gives you data that you can use to drive your marketing strategy and accomplish your objectives and goals.
It’s a systematic approach that with an investment can make your marketing not only easier but more effective.
What exactly can market research do for your business?
Identify Customer Needs
Evaluate and understand the precise needs of potential customers and develop your products and services accordingly.
Even existing products and services can be suitably modified based on the results of such market research.
Identify Customer Behavior Patterns
Potential customers may exhibit behavior patterns and preferences, such as a preference for only one brand or switching brands frequently; trying out new products; a preference for products of a particular type, size, color, price range, or other such parameters.
Identify Competitor Analysis
Research can provide you with valuable information about existing competitors, their adopted strategies, impact on target consumers (and their reactions), and other such details.
Identify Business Opportunities
Market research helps identify existing gaps and new business opportunities such as untapped or underserviced markets, as well as changing market trends such as population shifts, higher education levels, increased leisure spends and more.
Resolving Business Problems
A market research company can identify the cause of your business problems, if any, and suggest possible remedies.
For example, decreased sales could result from the entry of a new competitor, a substitute product, reduced brand awareness or negative brand image.
Accurate Business Decisions
The information collected through research can enable you to set realistic expectations and make appropriate estimations about sales forecasting, market share, growth rate and other such critical factors.
Develop Business Strategies
Research data can help you in developing strategies for product or service pricing, distribution and logistics, advertising media usage (radio, TV, newspapers etc.), making decisions for new products and services, and timing the market.
It can guide you towards better decisions on starting, consolidating, diversifying or reducing business activity.