Businesses, in the competitive environment need to be up to date in order to survive. Therefore, successful ones are periodically conducting market research in order to stay updated with the changing market trends and to hold on to their competitive edge. Whether the organization is in a startup phase for takeover expansion, an industry analysis is essential in understanding the vital characteristics of your targeted market, in order to increase the profit, Return on Investment [ROI], sales revenue and for overall business success.
The necessity of market research can be easily comprehended by understanding the diverse aspects that affect your business.
The market information gleaned from a market research report, includes various aspects such as sales revenue [ for current products], market size [in terms of no. of customers], the demand and supply circumstances, market segmentation, i.e. by geographical location, gender, age, behavior as well as other factors.
Intel on Existing customers
This requires comprehending critical customer decision making triggers for e.g. – Why customers purchase your product or why do they choose your competitors’? What is the key decision making factor- the prestige, service or the product? what is the value that they perceive in your product? What aspects prompt buying decision? Etc.
Ascertain potential customers
Market report surveys can be used to identify the potential customers; this can be done by understanding a few points. That is – Who is your targeted audience, what is their age group, gender, marital status, children [ if they have], their residence etc.
Customer needs and behavior
Assess and comprehend the exact needs of the targeted customers and develop our products/ services accordingly. Even the current products/ services can be adapted based on results of online market report.
Potential customers might exhibit a certain pattern in terms of their behavior and preferences for a particular brand of a product or change the brands frequently- trying out new products. A preference for particular type of color, size, price [ such parameters] for a product.
Competitive landscape and determining business opportunities
Market Research can provide you with valuable intel regarding the existing competitors and their strategies, plus their effect on targeted customers etc.
Meanwhile, insights into the existing gaps, new business opportunities, untapped markets, changing trends can also be gained by market research report.
Solutions to business problems and accelerate business decisions
Market researchers can identify your business problems and suggest various solutions. This will help the authorized personnel to make quick business decisions. Since these decisions will be based upon research results, the decision maker will be able to make appropriate estimations about sales predictions, growth rate, market share and other important factors.
Develop better business strategies
The intel gained from market research data can help company develop better strategies for service/ product pricing, logistics/ distribution, advertisement mode, making decisions for services/ product/ market timing etc.
The benefits business reap from market research can be seen in the following points-
- Enhanced communication between customer and company through understanding targeted customer’s needs, preferences and meeting them effectively
- Minimized risk through specific analysis of customer’s precise demands to develop products/ services accordingly, reducing failure/ error probability
- Measuring business success and progress, where possible faults and their solutions can be evaluated through market research data.