Why Market Research is so Important for a Start-up Business
It is extremely important for any startup to have a detailed understanding of their marketplace as it helps to create a roadmap to enable a sound business strategy. A well designed market research provides startups with the right blend of information to tackle stiff competitive from existing players.
Ideal Stage to Conduct Market Research
Because of the market volatility most of the startups have made it practice and an ongoing process to conduct market research at regular intervals. They start conducting research well before launching a new venture or product and based on the outcome decide whether to go ahead with the launch plan or not.
Market Research can act as a Differentiator
Most of the startups come across varied type of customers. Conducting market research at regular intervals provides them with latest information that helps them to understand their target customers. Further it provides startups with an opportunity to fine tune their products and services according to market requirement.
Different Types of Market Research
- Secondary market research: This market research type provides startups with a wholesome background about the market including previous success stories and purchasing habits of the target market. It highlights key areas where research can be conducted to cover the short comings in the current system.
- Primary market research: This type of research allows startups to gain present day information about the consumer’s wants and needs. Startups usually conduct primary research using panelists who provide unbiased views using reliable data and factual figures which help in building product and service that match with customer’s requirement.
Different Customer Behavior Patterns
- The price-oriented buyer: This type of customer is not much concerned about quality but intents to get best value on purchase. In this case startups have to carry secondary market research to understand if the products or services are priced competitively.
- The industry expert: This kind of customer has a great know how about the product and is concerned about value and quality both. They usually act as influencers to other customers through their advice. They are ideal for primary market research as it allows startups to showcase their products or services to them and in turn get their opinion on the market as a whole.
- The end consumer: This type of customer is the actual product users on a daily basis. They allow startups to understand the product limitations and frustrations and are ideal candidates for primary market research. Their inputs are valuable to make chances in the product specially while developing and designing new products.
By conducting market research at regular intervals, startups get a thorough understanding about the current market scenario. It helps in taking steps at the beginning itself to help improve their business. It also allows startups to show the stakeholders that the company is taking serious steps to innovate and re-invent their products and services on par with actual market needs.
- Pavan Mudholkar,