Blog

Why Market Research is a Smart Business Tool? Identifying top ten factors for it

Market Research brings about new opportunities and challenges. It is important every organization conducts market research in their own way to customize their business accordingly . Huge demands bring forth wider adaptions of new technology and extensive research. So to keep up with the present scenario these factors have been discussed in greater detail.

1631001564_Blog_Post_Dec-18_v1.jpg
Awareness

Market research is a focussed approach to gather large-scale information about markets and customers, 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, focussed groups, etc.


Identify potential new customers: Product testing for a newly released product that has been launched recently. Different products are launched in the market and to understand their acceptance thorough 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.


Understand your existing customers by market research:  Brand Switching is the most common thing that has been around as customers tend to float away to different brands. So market research helps us to understand brand switch and which customer is sticking to or retaining the same brand. Customer loyalty can be analyzed with a feedback survey. With such analysis, it will be easier to analyze Brand acceptance.


Set realistic targets for your business: To have a clear-cut methodology for research design. Creation of sample designing and identifying the 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 downtim of the service offered.


Solve your biggest business challenges: Undertake important decisions by thorough market analysis. A definite need to unlock new boundaries and potentials. Implementing the tasks and solving issues ensuring last-mile delivery.


Prepare for possible business expansion by getting the right data: Data-driven approach allowing the business to reduce complications and going for further extensions of their services and business verticals. Understanding the baseline for facilitating the needs for expansion.


Identify new business opportunities by identifying gaps in the offer: Deeper penetration into various segments and creating an individual market space. Delivering the result in the best possible way to avoid business-related delays. Analyzing the Key Performance Indicators for understanding the gaps created by business entities and penetrating them


Understand the market before a new product launch: To verify the target audience, an outreach of the program, and its endline beneficiary, understanding the market is a must. Segmenting the market regions following the standard SegmentTargetPosition (STP) requirement is the foremost option in order to get a broad outcome of the market scenario. Conducting SWOT (Strength, Weakness, Opportunity, and Threat) analysis of the product is a necessity as such an approach creates a holistic view of the present condition.


Conducting pricing benchmarking to better place your product: Nowadays cost reduction is an important task coupled with generating operating profit. This is why it is required to understand the key price differentiation for positioning the product for benchmarking. This is to establish a standard pricing strategy for different variants of the product categorization. With this understanding, the market demand and adapting to pricing variance is important aspect in getting the correct viewpoint


Conducting mystery audits: Deduction of the pricing scenario of a similar product by different brands. The core analysis of the various SKU’s 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.