If you are not familiar with the market research, here is a brief explanation: Market research is the process of pulling and analyzing information from customer/consumer groups, competitors, industry and the business environment in general. Therefore, it plays a huge role in any of the steps involved in the business process.
As a business owner, there are important questions that you will answer throughout the process of market research:
- Whether or not your product is good enough for the market
- To identify your customers’ sentiments and opinions about your marketing campaign
- Where and when your customers buy certain products or services
Market research is essential for companies of any size. As a business owner, it is crucial for you to gather market information continuously. Market research will provide you a better decision, better off, a data-driven decision. The following sections will explain how market research will help your business.
Feasibility Study for Your Company
Before you launch your new business, it is essential for you to identify the following:
Whether you offer the right product or service to the right market and if they really need your product or service
Whether there are enough customers to allow your business to scale up and be profitable
Gathering statistics such as demographic data and asking prospective customers will give you predictions about the market needs and the future growth of your business. This information is critical for you, the business owner, as you can predict the market before you even start. Allowing you to decide whether or not you want to take the risk to launch the company.
Assisting You in Setting Strategic Direction
Market research can be used to identify and validate your business ideas when you are about to offer new products or services. For example, you are selling organic toothpaste in Malaysia and you'd like to expand your business to Thailand. In order to do so, you have to first calculate the number of potential customers in Thailand, and whether or not the market is big enough. Also, as an organic toothpaste company, you have to assess to your competitors, whom you are competing against.
Identifying Your Customer’s Wants
Significant test marketing can be used when trying to sell the a new product or service. Significant test marketing is when you select potential consumers to try your product, whilst enlightening them on your product and explaining the benefits to them. This is useful as it can clarify whether your potential customers are aware and interested in your product and its benefits.
If you are not familiar with significant test marketing yet are thinking of trying it, you are able to do so in a less formal way by asking your potential customers directly through online surveys. On your survey, you can get insights on whether your product will satisfy your customer’s needs.
Monitoring Your Competitors
Another thing that you could do with market research is to monitor your competitors, which can be done through competitor analysis. With competitor analysis, you will be able to identify strategies used by your competitors to capture customers. As you are sharing the same cake with your competitors, your competitors' customers are your customers too. Among other things that you can capture through competitor’s analysis are: competitor’s activity, marketing strategies, marketing campaigns and business offerings. Through competitor analysis can it gain you a competitive edge.
Identify Available Opportunities
As a business owner, you are continuously seeking to grow your business and looking for opportunities that can elevate your growth. How market research plays into this role is that it makes you pay closer attention to the world around you, helping you structure pieces of information that will eventually lead to potential opportunities.
Spotting Potential & Trouble Ahead
Every business is affected by local and national economy performance and directions. Through market research can you monitor the business environment to identify signs of a potential economic slowdown or growth. Signs of an economic slowdown or growth could be identified through surveying those in the markets: customers, suppliers and business practitioners, whether they are satisfied with the economy directions and performance. Thus, allowing you to adjust your company strategies accordingly.