Market research is a very significant tool for a person who wants to launch a business .Market research also plays a vital role for small firms looking to grow their business by launching new products or services. Market research involves scientifically-led studies to collect necessary market information, empowering entrepreneurs to take appropriate commercial decisions.
Unfortunately, the study shows market research is a subject which is least taken seriously by startup entrepreneurs. It is in fact, a must stage in the business start-up process but many entrepreneurs don’t do it – not least because of the supposed cost. Market research determines the feasibility of a project and it’s a way to adapt a business’ strategy (communication, pricing policy, products range…)
What Market Research, Why it is important,:
It’s important to carry out market research in order to:
- Finalize an idea
- Make the project credible(communication, pricing policy, products range…)
- Organize properly the setting-up approach
- Present more credible facts before financial partners and others
Online research has revolutionized market research, providing both opportunities and challenges to researchers and research users. Online market research has grown rapidly in recent years as a key form of data collection for primary research activities.
Benefits Of Market Research:
Online market research offers both large and small research focussed organizations the chance to eliminate the costs involved with face-to-face, postal, online and telephone data collection.
Why A Business Owner Should Opt For Market Research:
- Identify The Prospects: The most important factor of business is to find your customer niche. If you are launching your product, you need to identify to whom you are targeting.Who is going to use your product/service? For an existing owner who has already a customer base needs to know who are buying your product? How old are they? Are they male or female? Are they married, single or divorced? Do they have children? Where do they live? What is their level of education? and so on.
- Develop Your Strategy: From your research, you’ll be able to make informed marketing decisions about how to price your product/service, how to distribute your product/service, which media channels to use (eg: newspaper, radio or direct marketing) or whether to develop a new product/service. It will also help you make an informed decision about starting, building, consolidating, diversifying or reducing business activity.
- Solve Business Problems: If you’ve identified a business problem, research will help you work out what is happening. For example, if your sales have fallen you might discover that your competitor is eating your market share, may be your sales force is lacking motivation or your product brand is not appealing anymore….
- Prepare You For Business Expansion: As a business owner your should always be looking for newer business avenues to explore. Expansion is not an option, it is a necessity for a business owner. Research will help you identify areas for expansion and test the market’s readiness for a new product/service. For example, you could be looking to open a new retail store to expand and you need to find the right location or expanding your distribution infrastructure which will benefit your customers.
- Identify New Business: Your research could identify new business opportunities. You may find an un-serviced or under-serviced market. You could identify changing market trends such as population shifts, increasing levels of education or leisure time which bring new opportunities.