Whether it is a startup or a seasoned business, market research remains a smart business tool.
Market research is a focused approach to gather extensive information about markets and customers, and to identify the need of the market, the market size, and competition. It is a unique tool for developing business strategies. The wide variety of techniques used are both qualitative & quantitative, with depth interviews, focused groups, etc.
Here are top 10 reasons why market research is a smart business tool:
Helps in Identifying potential new customers: A wide range of products are launched in the market every now and then, and to gauge if they will be accepted by the consumers, market research is required. Positioning the product is also important as there are thousands of products in the market with exactly similar features and different customer orientation.
To recognize the needs of existing customers: Brands witching is a norm that has been around for a while as customers tend to hop from one brand to another quickly. In such scenarios, market research helps a business understand brand switch in detail and recognize customers that are sticking to a particular brand and those who aren’t. Customer loyalty can be analyzed with a feedback survey. With such analysis, it will be easier to analyze brand acceptance.
To set realistic targets: Market research helps to determine a clear methodology for research design, creation of sample designing and identifying potential targets. Effectively cutting down on channels for reaching out to the last mile Develop new, effective strategies by understanding your market: Identifying new areas of business verticals and engaging the same. Reducing downtime of the service offered.
Solve business challenges: Taking important business decisions easily is possible with market analysis. From unlocking new boundaries and potentials to implementing strategies and solving issues, everything is easier with market research or analysis.
Prepares one for possible business expansion: Data-driven approach allows a business to reduce complications and go ahead with business expansion.
Seek new business opportunities by identifying existing gaps: Research helps with deeper penetration into the various segments of a market and then eventually finding a space for yourself. It is also a great method of analyzing the Key Performance Indicators (KPIs) and pinpointing gaps between the various entities of a business.
Understand the market before a new product launch: To set a target audience, the outreach of a program and its beneficiary, understanding the market is a must. Segmenting the market regions following the standard Segment Target Position (STP) is a good way of studying the market scenario. Conducting SWOT (Strength, Weakness, Opportunity, and Threat) analysis of the product is a necessity as it presents a holistic view of the ongoing market condition.
To determine pricing benchmark: For a business to flourish, it is important to fairly price a product or service, while generating an operating profit. This is the reason why it is of the essence to learn about key price differentiation for positioning the product for benchmarking. Additionally, it is to establish a standard pricing strategy for different variants of the product categorization. To conduct mystery audits: Deduction of the pricing scenario of a similar product by different brands. The core analysis of the various SKUs of the different products of a single brand. Reducing the channel conflict in the future and understanding the effect of discounting. The organization or the company is aware of the pricing strategy set up by the channel partners.