Top 10 Reasons Why You Need Market Research in 2023
To market your products successfully, you need to understand your target market and what they want/need from your product. This is where market research comes in – it provides you with the information you need to make informed decisions about your marketing strategy.
Market research is vital for the success of any product or company. It helps to gather, record and analyze qualitative and quantitative data, which then provides valuable insights into a specific market’s characteristics. There are many different techniques that market researchers can use, such as feasibility studies, advertising evaluation, customer satisfaction surveys, mystery evaluations and tracking studies.
It has been established that the majority of product or company failures come from the fact that little to no market research was done beforehand. As the saying goes, failing to prepare is preparing to fail. Therefore, it’s clear that market research is an essential tool for any business looking to succeed in today’s competitive marketplace.
For a better understanding of customers, market research is important
There is a shift from product-based to customer-based campaigns because customer experience is the new brand. marketing research has become essential in understanding customers.
Some of the questions answered by market research about your customers include:
Who will buy your products?
What do they expect from your business?
How often will they buy your products?
What do they need?
Market research and marketing
There are two main types of market research: quantitative and qualitative research.
Quantitative research is all about generating numbers and data. For example, you might want to know what percentage of people would be interested in buying your new product. To get this information, you would conduct a survey or questionnaire. You can also do some simple quantitative research by talking to customers directly. If you want more detailed quantitative data, you can launch a new product and use it to identify markets and understand customer profiles.
Qualitative research is all about understanding people’s thoughts, feelings, and behaviors surrounding products, services, or even specific issues. To uncover this information, researchers rely on tools like surveys and focus groups. These data sets provide valuable insights that help researchers understand what’s driving people’s actions and decisions.
Here are 10 reasons why your global business should invest in market research in 2023:
1. Assesses the market for new products and services
Developing a new product or service can be tricky- but market research can help you avoid any costly mistakes. It allows you to identify any key issues with the product or service you want to develop, as well as what factors are most important to customers. This way, you can make sure that the product or service you bring to the market meets customer expectations and needs.
2. Identifies potential customers
Demographic data such as gender, age, income, occupation and lifestyle can help you to understand your customer base more in-depth. If you know what your current customers look like, you can now who to market your products or services to in the future. Marketing to the wrong type of customer can lead to the product performing poorly.
3. Establishes viability of a product or service
If your company is already planning on bringing a new product or service to the market, you need to first establish whether the market is open to it. Will the product be welcomed? Is the product needed by the customers you are targeting? Will it be viable and what is its potential to succeed?
4. Anticipates and discovers future market trends
By knowing your market and the trends that are arising in the future, you can develop strategies that will help you counteract any downward trends that may affect your business. Upward trends can, in turn, be utilized to progress your business.
5. Keeps your company ahead of competitors
Comparative studies are great for tracking the progress of your competitors in comparison with your company’s progress. If they are moving far ahead of you, it is a great opportunity for you to learn what they are doing differently to you. Business strategies can be developed to move ahead of your competitors.
6. Decides best marketing strategy
Research is great for establishing what medium or channel is the best way to reach those who are truly interested in what you have to offer. If you can discover that your customer base frequents a certain medium more than another, it stands to reason that your efforts should be focused there and not somewhere else. Resources are valuable so putting them where success is guaranteed is a no-brainer.
7. Reduces risk and increases profitability
Having the right knowledge can help you reduce the risks your company takes and if need be, help you understand what risks are worth taking based on past information and future predictions of market trends. Market research helps to establish market viability which reduces the risk of failure. Knowing your customer needs is also essential to reducing risk. Reducing risk also helps to increase profitability at the end of the day.
8. Identifies threats and opportunities
Many of you may have heard of the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. Market research can help to determine all four of these areas. Where do your company’s strengths and weaknesses lie? What opportunities are available for your business on your market? What threats/risks do you need to overcome or avoid in order to be successful?
9. Helps to understand existing customers
Market research can help you to understand existing customers on a deeper level. Your customers are complex and what they may have needed before may not be what they need now. To be successful you need to check the pulse of your customer base regularly. What are their immediate needs? Are there new needs that your company can fulfill? What are their thoughts on your company and products?
Market research also helps to establish customer satisfaction levels. If you discover their satisfaction levels to be low, you can find out why and fix it. If it is high, you can establish why they are high and learn how to maintain that level.
10. Assists in realistic goal setting
Real-time data about your market and your customer base can help you to set goals that are attainable. Establishing a growth pattern over time lets you know what you can expect in the future and what plan you can implement in order to gradually expand that growth in a realistic manner. If you set unattainable goals, you will overexert your resources, fail before you’ve even started and miss out on goals that are better for your company in the long run. If you have any query related to Market Research, visit us at www.philomathresearch.com