Why is Market Research Important?

If your business wants to offers services and products that are well targeted and focused, then what you need is Market Research. By basing your business decisions on thorough market research, you can successfully reduce risk and pay dividends.

Market research is the process of collecting, evaluating and interpreting information about a new product/service to be offered, the current market scenario and the potential consumers for the product/service. Market research can highlight the requirements, characteristics, spending habits and location of your target audience. Market research can also keep you aware of the leading competitors that you would have to face.

Effective market research is important, as it can help your business understand what type of service/product to introduce into the market. It can also help your organization measure if you have been able to satisfy customer requirements and if the delivery, packaging or product itself needs to be altered. Armed with such information, your company can come up with a practical marketing plan or evaluate the success of your existing plans.

Top 4 benefits of conducting market research

By making market research an integral part of your business process and by regularly conducting market research throughout the life cycle of your product/service, you can leverage the following four benefits:

1. Communicate better with market research: By conducting market research on the experiences of your current customers, you can determine how well you are meeting their expectations. Such valuable information can also pinpoint where you are going right and more importantly, where your business is going wrong. Market research can help you stop making guesses about your customer relationships. Moreover, by taking an interest in your customers, you can show them that your business cares about them.

2. Identify business opportunities with market research: Are you on the verge of releasing a new product or service? Do you want to know the preconceived attitude that consumers will have towards your product/services? Market research can help by assessing the market potential for a new product/service idea. In-depth market research can also successfully identify the areas where you need to hone your marketing message.

3. Minimize risk with market research: By performing market research, you can successfully shape a new service/product, identify what is required and make sure that the development of your product/service is focused towards the consumer demand.

4. Create benchmarks and measure progress with market research:  If you do not frequently measure your business, you may not be able to estimate how well your business is doing. Early market research can throw light on the drawbacks or pitfalls of your service/product.  With regular market research, you can make positive improvements and motivate your resources.

Don’t make the mistake of thinking that you know what your customers want, without ever asking them.  Your company can avoid some expensive mistakes in the future, by investing in market research today.

Is there any other benefit of market research that can be added to the list? Would you prefer to outsource market research or perform it in-house? Let us know your thoughts and views by leaving a comment in the box below. We, at Outsource2india love hearing you!

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