Concept of market research
The market is becoming competitive every day, thus taking business decisions are getting complex too. This situation has opened a new horizon for market research industry since, big business houses now depend largely on market research to take a conclusive and strategic business decision. Currently companies are nurturing the potential of market research both, before devising strategies as well as post launching a product or service.
What is market research?
It is the process through which information is gathered to create an idea about the product market. It helps the firm generate a database on the competitive landscape while staying updated on the market dynamics to formulate appropriate strategies.
Advantages of market research
The following are the advantages due to which companies are adopting market research as a means to capture the target audience and enhance sales and revenue.
- It helps to identify issues within the business
- Study the varying needs of customers
- Keep track of the trends and adapt changes
- Identify new business opportunities
- Recognize potential customers
- Create strategies that are slow and sustainable
Why market research is required?
Market research is essential to understand the breadth of the existing as well as potential market for an organization to operate successfully. The following are the key reasons which makes market research a necessity:
- Businesses focusing on improvement and expansion depends on market research for a detailed insight. It helps entrepreneurs gain cost-effective knowledge on customers and competitors alike. Through market research, a business can compare and take decisions based on facts.
- In order to excel in business, entrepreneurs need to have a fair understanding of the issues that might turn into hindrance for future growth and development of the business. So, research plays a key role in identifying issues related to dissatisfied customer, competitors, market shares, sales and distribution.
- Research plays a significant part in determining new business opportunities while improving the market for existing product. An extensive market study helps in production planning, distribution and planning.
- The focus in today’s marketing strategy is customer-centric, so the research is centered around customer requirement. Organizations actively encourage customers to participate in surveys to understand their requirement better so that appropriate solutions can be shaped. This also enhances the customer satisfaction levels.
- In order to gauge profitability, companies try to analyze the potential market and customer expectation. Survey often detects the reason for dissatisfaction among customers which proves useful to alter business decisions based on customer anticipation on brand value.
- It is also important to understand why a customer left a particular brand and became loyal to another. This will help companies improve product and services based on customer satisfaction.
- Market research helps to determine the selling techniques and advertisements while creating price quotes that can improve overall sales of a product or service. A well-planned pricing and promotion will ensure business growth.
- Companies also depend upon market study in order to forecast sales and set achievable target.
An organization’s success broadly depends upon the information it gathers from the market through research. The data gathered through market research study are critical and fundamental and can act as a catalyst to attain the broad organizational objectives.
– Sunanda Ganguli
Manager – Content Marketing & Strategy