Market research is one of the key factors used in maintaining competitiveness over competitors and awareness of customer needs otherwise known as the changing basis of competition. Market research provides important information to identify and analyze the market need, market size and competition. Market-research techniques encompass both qualitative techniques such as focus groups, in-depth interviews, and ethnography, as well as quantitative techniques such as customer surveys, and analysis of secondary data.
Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making.
Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting on geographic differences, personality differences, demographic differences, technographic differences, use of product differences, psychographic differences and gender differences. For B2B segmentationfirmograhics is commonly used.
Market trends are the upward or downward movement of a market, during a period of time. Determining the market size may be more difficult if one is starting with a new innovation. In this case, you will have to derive the figures from the number of potential customers, or customer segments.
SWOT is a written analysis of the Strengths, Weaknesses, Opportunities and Threats to a business entity. Not only should a SWOT be used in the creation stage of the company but could also be used throughout the life of the company. A SWOT may also be written up for the competition to understand how to develop the marketing and product mixes. Another factor that can be measured is Marketing effectiveness.
So here are my top 10 benefits of market research:
- Market research guides your communication with current and potential customers.
Once you have your research results, you should have enough ammunition to formulate the most effective way to communicate to your customers. You should know what they like/don’t like to hear/see/do. Then you can tailor what you say to them to make them take action.
- Market research helps you identify opportunities in the marketplace.
Research might make it obvious that a new product you have planned may not be what your market wants or needs. You may then decide to make modifications on what you are going to offer to suit your audience.
- Market research helps you minimize risks.
Through market research, you may find all the information you need to decide whether to take action on a particular subject. For example, you may find that the particular location where you wanted to open a shop already has a saturated market in your line of business, which should make you refrain from making that decision and look for a more appropriate spot.
- Market research measures your reputation.
It’s always good to know how you measure against your competitors. Market research finds out just where you are and then, according to the results, you can take action to change perception.
- Market research uncovers and identifies potential problems.
You can get consumers’ reactions to a new product or service when it is still being developed. This should enlighten any further development so it suits its intended market.
- Market research helps you plan ahead.
Research can estimate the likely sales of a new product/service and also the advertising expenditure required to achieve maximum profits.
- Market research can help you establish trends.
If you treat your market research as an ongoing exercise that you do periodically, you’ll find that you’ll have a lot of data to be able to analyze your customers and establish any particular trends.
- Market research helps you establish your market positioning.
It’s important to know the position of your business at particular moments in time. Information from market research helps you benchmark and monitor your progress, which can be useful to make decisions and take action.
- Market research can determine the most persuasive ‘promise’.
Every brand needs to make a promise. If you think of the most known brands, they all make a promise to you and you usually know what is by just looking at their logo. It can be security, a fast and tasty meal or the assurance of top technology. It needs to be simple and market research can help you define what your brand’s promise is.
- Market research can find that compromise.
The team involved in the launch of a new product/service all have their individual perceptions and gut feelings. These certainly should not be ignored, but by going straight to the target audience, you will gain thoughts and opinions from people who may be less biased or less emotionally attached to a new development or service. It helps gain a new angle, hopefully a compromise in just how you are going to go about a new launch, a new brand or a brand repositioning.
About the Author:
Founded in the Ahmadabad- Gujarat, in 2012 by Krishnkant Panchal, Chief Mentor at Rushi market research services India, is a one of the first whole market research services in the region. In 2012, Krishnkant Panchal established the company and broadened its scope to serve even more clients.
He is an experienced Market Researcher with a demonstrated history of working in the market research industry. Krishnkant is proficient in Consumer Behavior, Customer Insight, Business Planning, Quantitative Research, and Business Development. He a strong marketing professional graduated from Gujarat collages, Ahmadabad.