Top 10 Reasons Why Market Research is a Must for all Business

why market research is essential for your business

It’s easy to ignore the importance of marketing research. After all, when you first think of a business concept, market research is the last thing that comes to your mind. Most businesses rather start making and selling products without giving a thought to the value of marketing research.

But for any type of business to grow and develop, there’s a real requirement for market research. This is especially the case for small businesses or start-ups, where the first few months can prove to be risky. New businesses need sales and customers ASAP, and market research can ensure a smooth flow of sales. Businesses should leverage Market research to creative effective strategies.

Benefits of Market Research

Market Research can effectively help your marketing strategy. The reason being, with market research, you get key insights and information to the business, you can understand your customer and competitors. Research will help you to know who is buying your product or service, who is not buying your product or service, what attracts them to your product or service, what does not attract them, whether they are loyal to your brand or not, etc. As the market changes, its important to continue to research and understand the market dynamics with the changing conditions.

Here are the top 10 reasons why market research is a must for all businesses

#1 Market Research Identifies new products or services

Market research can help you to find out what new products or services the market needs, the consumers need and how you can provide that. The basic logic is that if you have a business concept, you will know through Market Research whether that concept will work or not. If not, then you can pick another concept that will work for your end consumers. It also helps you establish the factors that are most important to customers and how you can incorporate those factors into your business.

#2 Market Research helps to identify potential customers

When a market research is done, demographic data in terms of gender, age, income, occupation and lifestyle is taken into consideration. This can help you to understand in-depth your customer base. Basically, market research helps to identify your customers and accordingly you can strategize your business. Marketing research provides valuable information about the potential of a particular market segment during a specific time, and within a particular age group.

#3 Market Research helps you to know whether your product or service is viable or not

If your business is already planning on introducing a new product or service to the market, you need to first find out whether the market is going to accept it or not. Will the product be liked? Is the product required by the customers you are targeting? Will it be viable or not?

# 4 With market research you will know your future market trends

By knowing your market and the trends, you can develop strategies that will help you curb any dipping trends that may affect your business. Upward trends can, in turn, be used to grow your business.

#5 Market research can help you keep a track on your competitors 

Marketing research is a good evaluation tool which can be used in comparative studies. You can track your business progress as well as the growth of your competitors. You can devise business strategies that would keep you ahead of your business competitors. Comparative studies are useful for keeping a track of the progress of your competitors vice versa your company’s progress. This can keep you ahead of your competitors

#6 You can strategize your business in the right direction

Market Research is needed for establishing what medium or channel is the perfect way to reach those who are actually interested in what you have to offer. If you can discover what your customer base requires, then  you can put in your efforts in the right direction and not somewhere else. 

#7 With market research, you can minimize loss in your business

With market research, you can reduce the chances of loss to a great extent. Before introducing a product, you can find out potential problems and even determine the solutions. The research carried out after the launch of a new product can help you find faults and devise plans to counter that loss and increase the profits. Market research helps to establish market viability which reduces the risk of failure. Knowing your customer needs is also essential to reducing risk. 

#8 Market research identifies threats and opportunities and helps in increasing sales

Market research can help to do a SWOT analysis ( strengths, weaknesses, opportunities and threats) for your business. What are your business’ strengths and weaknesses? What opportunities are available for your business in your end market? What threats/risks are there to overcome or avoid in order to grow your business? Market research not only helps in identifying new business opportunities, but also helps in designing marketing campaigns that will directly target the interest of your potential consumers and help in increasing sales. 

#9 Get to know your existing customers better

Market research can help you to understand existing customers better. Your customers’ preferences keep on changing. What they may have needed earlier may not be what they need now. To be successful you need to track your customers’ likings and dis-likings on a regular basis. In other words, you need to check the pulse of your customer base regularly. This will help to establish customer satisfaction levels. 

#10 Last but not the least, set realistic goals for your business with market research

Real-time data about your market and your customer base can help you to set goals that are realistic and achievable. Establishing a growth pattern over a period of time helps you know what you might require in the future and what ways you can implement in order to achieve that growth in a realistic manner. If you set unattainable goals, you will waste your resources, and miss out on goals that are effective for your company in the long run. With market research, you can set realistic goals. 

Conclusion:

It is clear that market research is important when developing your marketing strategy. It provides great insights to your business. Market research is needed on a continual basis, if you want to keep up with the latest market trends and gain a competitive edge in the market. Understanding market research and using it to your benefit is important in reaching out to your target audience and increasing your sales and profits.

Here is why your company should conduct business market research:

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