Market Research is the backbone of any business. If you haven’t gone through it, you do not know the importance of market research. It is the process of collecting, interpreting, and evaluating data to come up with practical solutions to foreseen problems. It is a deep study of the products you will deal with. It is a scrutiny of the products and market you’re trying to tap. The factors covered in market research are deciding your target audience, coming up with peculiar characteristics about your product, and understanding the competitors’ mindset.
The importance of market research is huge in today’s digital age. Today we are facing a substantial amount of competition in the business environment. Especially with the digital promotion aspect, the importance of market research has reached as to how to promote the said product. So, the importance of market research not only helps in selecting products but also saves us from any potential threats. The importance of market research is such that it gives us answers to questions.
Market Research gives us answers to questions.
Here are some of those questions:
1. What problems can I solve?
Business means problem-solving, all of us are well aware of it. Solving a problem means you come up with a product or service. This is the ideation stage or the inception stage. More the lifestyle changes, more the problems or obstacles faced by the customers.
The importance of market research helps us understand purchasing power of people, buyer behavior patterns, and reasons for not purchasing the seen product or service. In daily living or when enjoying leisure time with family, how do people spend, why do they spend that way and why do they not opt for the other options available are some of the important questions that need answers.
2. How can I make it innovative?
Business is all about attracting people to your products or services. The importance of market research helps us to get a deep understanding of the market and the product/service. After selecting the product/service, if it is already a niche or very less competitive, then you’ve already there.
You can start the next step as you’ve found potential in your product/service. If you’re about to enter an existing business type, try to make it innovative by offering something extra. Try to make the product better in terms of functioning and make it a feel-good product.
3. What are my competitor’s doing?
The importance of market research makes it easy to get hold of our competitors. We can keep a close watch on their actions and promotion strategies. In today’s times, more the innovation the more chances of enjoying profits. Innovation in terms of product functioning and promotion.
Study the competitor closely, and make a list of them. Observe their actions. Observe if those actions are working for them. If yes, what was their point which helped them? If not, then what was the point where they went wrong? Close competitor analysis is important in order to survive and stay ahead of the competition.
4. How am I going to promote it?
This is the most important decision to make. What mediums of promotion to use, traditional or modern? What should the promotional budget be like? It actually depends on the nature of your product/service. What are the features that you’re going to offer via your product/service? If those are in a unique set, you have no need to spend much.
The creativity and the unique features it offers will attract people automatically after a bit of promotion is done. Promoting your product/service is the most important thing to happen. It increases awareness about your existence in the market and spreads the word at a rapid pace. If done on the internet, the reach is higher at all times.
5. Am I attracting new customers?
All of us want our brand to grow. We love our existing customers who are in the line of being potential ones too. Being a business person, we love solving people’s problems. There will exist a set of people who aren’t aware of your product’s presence. Try to tap into that market, and see whether your products/services are acceptable to the new set of customers. If need be, modify the product/service in a way that it will be accepted into that untapped market. It’ll attract new buyers for you. After all, who doesn’t love new customers, isn’t it?
6. Is it making sense?
This can be the most underrated fact to be considered. But, is of vital importance in fact. At the end of all of it, you will ask yourself, is all of it making sense? Is it really solving a problem? (As said in the first point). If yes, all your efforts towards market research are a hit. No two ways about that.
When the research is going on, try to discuss it with your peers or colleagues and understand their views. If you fail by chance, make changes according to your observations. See where you’re going wrong, and make the necessary changes. Make the necessary changes if you see a drop in the sales figures or the inflow of revenue.
As we conclude, you’ve got that market research is the basis of your business. It helps us to set achievable and realistic goals. We can take calculated risks. We predict the customer’s mindset, buying behavior, and purchasing power. We are able to identify new products/services if we wish to diversify or expand our business activities. Research helps to modify operations and increases sales figures and brings in more revenue flow.
We are well aware of the potential risks we are going to face and we will take the necessary steps in advance. The skill of being in the business or being able to sustain the business is an important factor to consider. Market research allows us to do that too. Continuity in research and keeping on innovating and experimenting is the skill of a true business person. Hope these points were of help. All the best for your business!