Market research, while often sophisticated in its design, is actually quite simple in its objective: to foster insight into market conditions so that companies can hopefully make better business decisions. Fundamentally, all companies want to reduce their risks and maximize their opportunities, either turning a profit or improving lives, depending on their overall business goal. Market research helps them hedge their bets as they work towards this goal. Here’s a quick overview detailing why market research exists:
The Purpose of Market Research is to Verify Market Need
Markets come in all shapes and sizes. To correctly position itself in any one industry, a company must understand who needs a product and why they need it. It must understand when and where people buy certain things and how they use them. The size and diversity of a consumer base will necessarily dictate the ways in which a company attempts to meet its demand. Thus, companies must conduct market research, asking questions so that the answers can shed light on the direction they need to go.
The Purpose of Market Research is to Identify Competitors
Of course, competition is always a concern in any market. Market research helps businesses identify other players in the game (as well as those who might be waiting on the sidelines). Knowing who you’re playing against is vital to planning a strategy for defeat in any situation. In a business one, it helps companies position themselves; they can copy the practices that work for others and disregard the ones that don’t.
The Purpose of Market Research is to Improve Company Offerings
Market research also helps businesses create offerings that either fill a void or provide better value than those already available. Potential products and services can be evaluated against current market offerings, as well as tested before a full-scale market launch. This helps companies manage their valuable resources, saving their time and money for only those offerings best suited to favorable outcomes.
The Purpose of Market Research is to Satisfy Customers
In essence, it could be argued that customer satisfaction is the ultimate goal of market research. Satisfied customers are happy ones because their needs have been met. If a business’s number one goal is to maintain a profit and/or improve lives, then a happy customer is a good indication that it’s doing that job well. Surveying customers provides the feedback companies need to maintain or adjust their practices in ways that satisfy the people they serve and build brand loyalty.
Want to Learn More?
While the purpose of market research might be relatively simple, designing an actual market research plan requires a specific set of skills. If you need assistance choosing the right research methodology, contact our team at Communications for Research (CFR). We have over two decades of experience crafting projects that garner meaningful and actionable results for our clients. We can help you properly assess the conditions within your industry, along with your competitors and customers, by offering you the right data collection services and the right analysis techniques.
Feel free to also download our free eBook, “6 Keys to Accelerate Growth with the Right Data Collection Partner,” for additional market research tips.