5 Reasons Why Market Research Is Crucial For Your Business
Every successful product or service that we use today started with extensive research about customers and competitors. Accurate and specific information about customers and competitors is the critical first step in the development of a marketing plan.
Brands and small businesses finally realized that they need to know a lot more about their potential clients, their market and their main rivals.
That’s why when you’re launching a product or you try to improve your existing service, or if you’re just looking to be a step ahead of your competitors, Market Research is the critical component that’ll provide you with all the information that you need to make a better business decision.
In spite of the fact that brands become more aware of its importance, the process of market research can appear too long and too overwhelming in the eyes of small business owners and entrepreneurs.
That’s why to clarify, even more, we outlined for you 5 things that market research can do for you in the process of product development & business growth:
1. Better understanding of your customers
Who will buy your product? Who are your ideal customer personas? How often will they buy? What do they need? What do they want, expect?
The more answers you have the more understanding you’ll get, which will result in meeting the customer’s needs better than your competitors.
Market research will help you map out the full profile of your ideal customer. Knowledge of your customers will help you determine the market size and what triggers them to buy. You’ll gain valuable insights like their age, location, gender & income, which will help you in creating effectively tailored marketing and pricing campaigns.
2. Knowledge about your competitors, and how they approach the market
Who is your competition? Someone that you know of or you don’t, is taking away your customers and wins the market. That’s because they’ve done their research ahead of you, and now you need to do the same if you want to stay in the game.
Market research will help you find out who is providing the service that you plan to offer. It will help you find out if any new competitors want to enter the market.
Also, with effective market research, you can predict what will be your competitor’s reaction when you decide to enter the market, and how your customers will perceive your product compared to the competitors.
Market research will do the job of finding weaknesses in your competitor’s approach that you can utilize to gain more customers, as well as find out what worked for them to help you think more innovatively while modeling your new strategy.
Knowing as much as you can for your competition will be crucial to the success of your business.
3. Testing your product before launch
So your product is at its final stage, and all you have to do is start marketing and sales right?
Wrong! You can still improve your product/service function and appearance based on customers user experience and testing.
You can never be 100% sure that your product will instantly connect with your potential customer. With market research, you’ll find out what approach you should take when marketing the product and find the key message that resonates with clients.
4. You won’t go out of business
“It is not the strongest or the most intelligent who will survive but those who can best manage change.” — Charles Darwin
We’re not exactly sure if Darwin did some market research in his free time, but his words are so important and still echoing today in possibly the most innovative era in the history of mankind.
We all saw how giant brands like now-bankrupt Blockbuster, and Nokia that still struggles to get back in the mobile game failed in their market predictions and are nearly forgotten by consumers today.
Netflix and Apple did their market research right prior of any other competitor and utilized every open gap out there.
So in order to remain in business and stay relevant, you should not only anticipate change, but you need to be able to predict change too. That’s how good your market research needs to be!
5. Business growth
It takes time to build stable revenue, but as entrepreneurs at some point, you’ll need to take your business to the next level. Suddenly, you’ll face more competition and lower sales, while on the other hand some of your competitors will have fewer problems.
Market research is the basis that has to be included in your growth strategy, so you can capitalize on the market opportunities that you’ll discover. It will help you develop a new product, better pricing plan. You’ll discover new market segments and new distribution channels.
Identifying problems before they happen is crucial if you want to grow. The effective market research will help you predict some of the pitfalls that can occur during the growth process and save you a lot of money in the process. Your solution may look like a proper market fit, but if it’s not the case, you’re in big trouble. The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business.
In conclusion, Market Research provides us with important information to help us identify and analyze the market needs, our customers, and our competitors.
We hope that this information helped you understand better why Market Research helps companies in making better decisions when they develop and market their products, as also achieving business growth.
You want your competitors to “eat dust”, so it’s very important to have the insights, to know how to strategically position your business in the marketplace.
This post was previously published on our blog, where you can read lot more about Startups tips and Entrepreneurship advice.
If you are an Entrepreneur that wants to start a business or own a company that wants to expand, wants to successfully identify trends and competitors and better understand his clients but still not sure where to begin, BizzBee is here to guide you through the steps that will help you differentiate from your competition. Our expertise is in working with Entrepreneurs and Start-ups and we can guide you throughout the entire process.