Like any type of research, the purpose of market research is to gather information, specifically information concerning the validity of a product or service within a particular market. This type of information makes it easier for companies to anticipate and meet consumer demand, thus allowing them to better satisfy their customers and stay ahead of the competition. It’s not a complicated concept: better data yields better results. Thus, in the business world, good information is the key to improving ROI and turning a profit. Here’s why:
Market Research Reduces Uncertainty
The purpose of market research is straightforward enough: to gather insight. However, “purpose” is an overarching term meant to define a comprehensive mission, a “reason for being," so to speak. In more specific terms, the goal of market research is threefold. First, market research reduces uncertainty. Directly asking consumers about their opinions, preferences and wishes allows a company to know — rather than guess — about how to provide the products and services most valued and needed.
Market Research Minimizes Risks
The purpose of market research also deals with using information to minimize risks. Indeed, information acts as insurance; by speaking directly with key players in a market, a company gains valuable and timely insight that can inform its decisions, thereby advancing the probability it will achieve success.
Market Research Informs Action
Finally, the purpose of market research is to gather information so that a company remains cognizant of past and current market trends so that it can act in ways that anticipate and meet future demand. Oftentimes, the key to business success is simply staying ahead of the competition. Market research can provide the facts needed to remain a step ahead of everyone else.
Want to Learn More?
The purpose of market research is to get the information a company needs to make better business decisions. It’s a simple concept, but the process can be difficult to manage, especially if your company doesn’t have the time, resources or experience to determine what you need to know or how to get the answers. A good market research project necessitates an understanding of the basic research process: identifying the problem and devising a plan for addressing it. In addition to choosing a methodology, a company must ensure that it asks the right people the right questions and collects answers in a way that allows for the future retrieval and analysis of them. Our team here at Communications for Research (CFR) has over 20 years of experience crafting studies that yield actionable insight, insight that improves our clients’ ROI and boosts their profits. Please contact us to learn how we can help you, too.
You might also wish to download our free video guide for avoiding five of the most common market research mistakes.