If your company has been conducting research only as an on and off activity then its time you invested more into market research. Market research can be integral to the success of your business and if done on a regular basis can help you maintain a competitive edge and keep up with market trends. Regardless of whether you are looking at expanding your business or you are just starting your business, market research is vital to increasing your sales and understanding your target audience. Here are 7 reasons why your business must conduct market research.
1. Identify new customers
Market research can help your business identify potential customers. Who would use your product? What is their age group? Are they female or male? What is their level or education? With answers to such questions, you can customize your product/service to meet the needs of your customers.
2. Understand existing customers
Get to know why your customers choose your product over your competitors. Find out what they value (your quality, services or the product itself). Get details about who influences their buying, what they enjoy doing and what websites they visit.
3. Set up achievable targets
With the information you collect from market research, you will be able to realistically set up targets for business growth, sales and introduction of new services/products.
4. Make informed marketing decisions
With market research, you can develop effective business strategies and make informed marketing decisions. Now you will know how to price your product, how to distribute your services, which media channel to employ (radio, direct marketing or newspapers) or whether to create a new product. You can also make the right decisions about your other business activities.
5. Identify new business opportunities
With effective market research, you can easily find new business opportunities. You may be able to find an under-serviced or un-serviced market. You will also be able to identify trends like increasing levels of education or leisure time which can show you new business opportunities.
6. Expand your business
Market research can show you areas for expansion and help you test the market’s readiness for a new service/product. For example, you want to open a new store and have to find the right location or maybe you want to make changes to your current distribution channel and find out how it will affect your customers.
7. Identify and solve business problems
Market research can help you spot and solve business problems that are hindering your growth. For example, research can point out if your sales has fallen, it may be because of a lack of brand awareness, a new competitor or a substitute product available in the market.
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