Market research is a critical component when you?re launching a product, try to improve your existing service, or when you?re just looking to be a step ahead of your competitors. It will provide you with all the information you need to make a better business decision.
We outlined the 5 things that market research can do for you in the process of product development & business growth:
1. It is crucial for a better understanding of your customers
Who will buy your product? Who are your ideal customer personas? How often will they buy? What do they need? What do they want, expect?
The more answers you have the more understanding you?ll get. This will result directly in meeting the customer?s needs better than your competitors.
Market research will help you map out the full profile of your ideal customer. Knowledge of your customers will help you determine the market size and what triggers them to buy. You?ll gain valuable insights like their age, location, gender & income, which will help you in creating effectively tailored marketing and pricing campaigns.
2. Knowledge about your competitors, and how they approach the market
The competitors are taking away your customers and win in the marketplace. That?s because they?ve done their research ahead of you. And now, you need to do the same if you want to stay in the game.
Market research will help assess the market to identify both key players and those on the rise. Furthermore, it will help you find the weaknesses in your competitor?s approach. These are gaps that you can utilize to gain more customers. You can also learn what performed the best for the competition. In turn, you will be able to think more creatively while modeling your new strategy.
Knowing as much as you can for your competition will be pivotal to the success of your business.
3. Testing your product before launch
Testing is a very important part of learning what works before jumping into the business world. Every business decision should be tested before fully exposing to your target audience. By market testing your idea or product, you will save yourself from additional expenses and most importantly, from delivering a bad product to the marketplace.
You can never be 100% sure that your product will instantly connect with your potential customer. With market research, you?ll find out what approach you should take when marketing the product. You?ll also find the key message that resonates with clients.
4. You won?t go out of business
?It is not the strongest or the most intelligent who will survive but those who can best manage change.? ? Charles Darwin
We?re not exactly sure if Darwin did some market research in his free time. But, his words are so important and still echoing today in possibly the most innovative era in the history of mankind.
We all saw how giant brands like now-bankrupt Blockbuster and Nokia that still struggles to get back in the mobile game failed in their market predictions and are nearly forgotten by consumers today.
Netflix and Apple did their market research right prior to any other competitors and utilized every open gap in the movie shows and mobile phone segments.
So, in order to remain in business and stay relevant, you should not only anticipate change, but you need to be able to predict change too. That?s how good your market research needs to be!
5. Business growth
Market research helps you comprehend the demands of your customers, detect more business opportunities, plan the perfect marketing campaign, minimize losses, and keep track of the competition. It allows organizations to classify their objectives while following the current trends and take advantage by reaching out to their target audience.
Identifying problems before they happen is crucial if you want to grow. Effective market research will not only help you predict some of the pitfalls that can occur but also it will save you a lot of money too. Your solution may look like a proper market fit, but if it?s not the case, you?re in big trouble.
The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business.
To conclude, market research provides you with important information that will help you identify and analyze the market needs, your customers, and your competitors.
We hope that this information helped you understand better why Market Research helps companies in making better decisions when they develop and market their products, as well as achieving business growth.
This article was originally published on BizzBee Blog.