In today’s rapidly changing environment, it is imperative for companies to have relevant data to take correct and strategic decisions. Market research can provide invaluable information to a company, giving deep insights on the industry and markets.
Market research encompasses primary and secondary research that help in understanding customer needs and market trends. It plays a key role in effective strategizing.
Primary research, considered more accurate, entails obtaining first-hand information from respondents. Secondary research refers to the collection of already published and available information.
Market research advisory helps in the following areas:
- Spotting business opportunity – You can identify your potential customers and locations. This information helps in taking crucial decisions regarding marketing strategy, distribution channels, and brand alliances.
- Understanding your customer – Detailed information on customer preferences, buying patterns, pain points, likes and dislikes helps you in designing apt products and services, or upgrading these as required. It also assists in devising the right marketing and advertising strategies.
- Identifying business risks – Being aware of customer preferences and problem areas helps businesses in identifying potential threats and issues. This information can be leveraged to hedge better against challenging situations.
- Setting goals – This requires an understanding of a market and industry trends. Market research covers expounding on factors contributing to dynamism in the environment. The valuable insights thus obtained are helpful in setting realistic goals.
- Analyzing competition – Knowledge of competitors’ marketing strategy and offerings helps in understanding target customers’ reaction to products and services, and thereby, gaining a perceptive on the target market.
While market research is usually done before taking decisions such as launching a product or entering new markets, it is not a one-off activity. As it provides a holistic picture of the business landscape, it must be done regularly. Many businesses see it as a key step in developing their business plans. There is no doubt that market research is important in taking prudent decisions that drive businesses forward and, therefore, must be made a key aspect of growth strategy.