Market research involves methodical, objective and orderly collection of information about a particular target market, competition and the market environment, with the objective of analyzing the niche in order to substantiate optimal product positioning. The process operates through data collection that is gathered through either primary or secondary research.
Companies that provide market research services often also use scientifically led case studies to assemble the appropriate market material, thereby assisting top-level management of companies in the process of correct decision-making. The aim of any market research project is to duly understand the happenings and dynamics of the market space in order to help businesses survive in the long run. With industries throughout the world turning competitive, market research has never before been as imperative for an organization – small or big. Let’s take a closer look at the reasons organizations today look to carry out such research and therein try to understand why business research services are sought after by corporations across the world today.
What are the reasons to carry out a market survey?
Identifying the potential targets
Ascertaining the probable consumers is a crucial step for businesses. Market research will help the business target the correct people which will in turn help them in tailoring their product to offer satisfactory services to their customers. This can also include identifying individual buyers or middlemen who will re-sell the firm’s product.
Paying attention to existing customers
Retaining customers is a crucial aspect for all organizations. It is important to carry out appropriate research to understand whether old customers remain loyal to the company or the brand. Studies carried across a number of industries have shown that the cost of keeping an existing customer is around 10% of the cost of acquiring a new one, thus giving us a clear picture why a company would like to understand what helps them retain an existing customer base.
Identifying business opportunities
A market survey can help firms identify the business opportunities that prevail in those industries as well as in the specific markets in question. Companies that provide market research services help the management identify changing consumer trends like current likes or dislikes in the market, population shifts, changes in consumption patterns etc. Since these markets are dynamic, any little change can open up a drastic opportunity whichcompanies can take advantage of.
Business expansion prospects
Carrying out a research investigation into the industry will duly provide expansion areas for firms and businesses alike. For example if one wants to open a new retail store, several factors like a right location, proper distribution channels (for e.g. Home parties to retail), market readiness, customer base analysis, etc. need to be carefully investigated and researched upon to come up with sale-friendly strategies.
Ascertaining realistic targets
The information collected through the research helps companies set realistic targets related to growth, expansion, sales or introduction of any new products or services.
Developing and executing effective strategies
An important aspect which can be achieved through the process of gathering market intelligence is the formulation of sound strategies and policies that will help businesses thrive in the market. Firms that deliver business research services provide useful insights that help companies take informed decisions with regards to the challenges in the market, as well as other business aspects like diversifying or concentrating a certain business activity or eliminating a certain procedure completely.
Solving business problems
Once a problem has been identified, research can help companies figure out solutions or provide useful insights with regards to the happenings in that particular market, which can then be interpreted by the respective companies to formulate effective strategies. For example if the sales have fallen for a particular product, research could help in the identification of reasons like brand awareness having decreased simultaneously or that a new product has entered the market.
These reasons more than justify as to why businesses should carry out proper research in face of such changing market dynamics and consumer behavior. Companies all over have now realized that in order to roll out effective strategies to capture a significant market share among specific target groups, market research and relevant business intelligence becomes indispensable.