A critical component of marketing is market research. Market research will give you all the information you need to make an informed plan, which in turn will increase the all-around efficiency of your marketing efforts. Research is key if you’re launching a new product, trying to improve on your existing services or perhaps you’re just trying to be a step ahead of your competitors.
Here’s a list of five things that market research offers in your process of business growth:
1. Get a better understanding of your potential and existing customers.
What do people need? What do they want? What are they expecting? How often are they going to buy your product or service? Who is your ideal customer and why are they going to choose you? Market research will give you the answers you need to meet your customers needs better than your competitors.
Knowledge of your customers will help you work out the full profile of your ideal customer. This will also help you determine the market size and what triggers people to buy. You’ll gain valuable insights like their age, location, gender, income, whether they like cats or not and more. Having all of this information to hand will allow you to tailor a marketing campaign specifically for your target market.
2. Knowledge of your competitors and how they approach your market.
The competition take away your potential and existing customers and win in the marketplace. That’s because they’ve done their research ahead of you. Now, you need to do better if you want to stay in the game.
Research helps assess and identify key players and those who are emerging from darkness. If you complete your research well, you’ll be able to identify weaknesses in your competitor’s approach. These are gaps that you can fill to get more custom. You can also learn about competition performance, which will lead you to think creatively while modelling your new strategy.
It’s obvious, knowing as much as your competition and how they operate is a pivotal key to success.
3. Test your product or service!
You can never be sure that your product or service will instantly connect with your potential customer base. Performing market research will find out what approach you should take when marketing your products or services. You’ll also find the key message that resonates with prospects.
4. You won’t go broke!
“It is not the strongest or the most intelligent who will survive but those who can best manage change.” — Charles Darwin
I’m not exactly sure if Darwin was a market researcher in his spare time but, his words are important and still very much alive today in one of the move innovative era’s in history.
Companies like Blockbuster and Nokia were, at their peak, market leaders however, because they failed to adapt to change they are nearly forgotten by the consumers of today. On the other end of the spectrum, Netflix and Apple did their market research right and used every open gap in their segments to surge ahead and leave everybody else behind.
So, in order to remain in business, stay relevant. You should anticipate change, but you’ll need to be able to predict those changes too. That’s how good you need to be when it comes to market research.
5. Growing your business.
Marketing and market research helps you understand the needs of your customers, find new business opportunities, plan that winning campaign, minimise your loss and keep an eye on your competitors. It allows organisations to identify their objectives while keeping up-to-date with the current trends.
Spotting problems before they arise is another critical element if you want to grow. Good research should predict the pitfalls that can occur and as a result, save you money. Your solution may look like a winner but without market research, you could be heading for trouble.
The process of research is designed to reduce the risk to you and your business while making your strategy cost-effective.
The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business.
As we’ve seen, market research when done properly provides you with all the important information needed to identify and analyse the market, your customers and the competition.
I hope you now have a better understanding as to why market research helps with effective marketing decisions as well as achieving business growth.