Are you planning to start a business, launch a new product or service, understand your customer’s needs and preferences or increase your business visibility? If yes, then you first need to conduct market research. Market research is defined as the action of gathering, interpreting, and analyzing data to help solve unique marketing challenges.
Conducting marketing research will help you make informed decisions before starting a business or launching a new product or service. Therefore, it is crucial to incorporate market research into your business plan, especially when developing a marketing strategy.
In addition, when utilized correctly, market research can help you make intelligent decisions, such as knowing the needs and expectations of your target audience.
Market research should not be a one-time thing; it should be an ongoing process because the business environment keeps on changing. Conducting marketing research will help you understand the factors that are changing and the impact they have on your business.
In this article, we give you reasons why market research is crucial to your brand’s success.
1. It will help you identify untapped opportunities
One of the most significant benefits of conducting marketing research is that it helps you identify untapped opportunities within your niche. An untapped business opportunity is where customers are ready to spend money but cannot find anyone to take it.
If you want your business to stand out and thrive in this competitive business environment, you must strive to identify untapped opportunities and maximize them before your competitors catch up. This can only happen if you conduct market research.
Customers like associating themselves with businesses that are creative and offer products or services that meet their needs. Market research will help you discover products or services that your target customers are actively looking for but are not yet available on the market.
2. It helps to minimize business risk
Data released by the Bureau of Labour Statistics revealed that more than half of businesses in the US don’t survive past the fifth year. According to experts, the main reason why a vast majority of startups collapse is because of not conducting thorough market research.
Taking risks is inevitable when running a business. However, not all risks are worth taking. Some risks can propel your business to success, while others can make it sink. The only sure way of minimizing business risks is through market research.
Good market research will help you minimize wastage by channeling energy and resources in the right place. You will understand your customers better and use the available resources more effectively to boost revenue.
3. It helps you understand your competitors’ strengths and weaknesses
Knowing who your competitors are and what they are offering can help you develop marketing strategies to outshine them. Market research will help you understand the strength and weaknesses of your competitors. You can then use that knowledge to create marketing strategies that will help your business stand out.
If used well, market research will help you know the weaknesses of your competitors and use them to your advantage. You will know the moves that your competitors are making and what to do to counter them accordingly.
4. It helps you identify problems
Conducting market research will help you identify potential problems that your business is likely to face. Every business has its own set of challenges, and how you identify and fix them will determine whether your business will succeed or not.
One of the traits of a successful business is the ability to identify and fix potential problems early. The best and the most recommended ways of identifying potential problems that your business is likely to face is through market research.
Besides identifying potential problems on time, market research will also help you come up with concrete solutions to deal with the issues before they get out of hand.
5. It helps you use relevant promotional materials
The promotional materials you use on your business are crucial and will determine whether they will have a positive impact on your target customers or not. If you use promotional materials that are not relevant to your target audience, they will not have a positive effect.
The surest way to know which promotional materials to use for your business is by conducting market research. This way, you will know what your target customers want or expect from your business. You will know the types of promotional materials that will bring the best results.
6. It helps you know where to advertise your business
Where you market your business matters a lot, a 2016 survey revealed that marketing consumes up to 40% of a company’s budget. This is a lot of money that can go to waste if you don’t advertise on the right platform. Marketing your business on the wrong platforms is a waste of money and resources.
For instance, if most of your customers use online platforms, advertising your brand in magazines or local dailies will be a waste of money.
The best way to know where to advertise your business is by conducting market research. This way, you will know the demographics of your potential customers and the best channel to use to reach them.
For instance, if your market research shows that your target audience spends most of their time on social media platforms such as Facebook, Instagram, and Twitter, then advertising on these platforms will give you the best outcome.
Market research will help you know where your customers are and the best advertising platform to use to reach them.
7. It helps you make an informed decision
There comes a time when you will have to make critical decisions that will have a huge impact on your business. While not all decisions will require you to conduct market research, some, especially those that touch on critical aspects of your business, will require you to do so.
For instance, if you are thinking of opening another shop in a new location or how to price your products or services, you need to conduct market research to get solid facts. Resting the fate of your business on opinions and guesswork is a recipe for failure.
8. It helps you set realistic goals
If your business has failed to achieve the set goal multiple times, then it is because they are not based on proper research. Market research can help you set almost accurate goals. In fact, the best way to make precise projections is by conducting market research.
For instance, if you want to double your manufacturing capacity in six months, market research will help you know if your target customers will be doubled by then or not. Market research will help set goals that are realistic and achievable.
Market research is one of the most important elements of running a business. If you want your business to thrive in the ever-competitive business world, you need to conduct market research regularly. This way, you will understand your customers better, identify the strengths and weaknesses of your competitors, set realistic goals, make informed decisions and also know where to market your business.