You know what people say about assumptions, right? In the business world, they can do a lot more than color you a fool, though; they can sabotage even the most brilliant business decisions, often leaving you and your company with more losses than gains. Of course, many companies take a leap of faith when they start out, presuming a consumer need that they believe themselves equipped to fulfill. But for long-term success, businesses need facts, not conjecture. That’s why good market research is critical; it can mitigate uncertainty, allowing you to venture into the unknown better prepared. Here are four reasons why market research is so important:
It Can Verify Market Need
First and foremost, businesses succeed when they can supply the right people with the right product or service. Market research, then, acts as a resource for companies, pinpointing consumer need and any existing gaps in market offerings. It can also help them determine the price point at which the majority of people might buy a product or service and the lengths to which those people might go to get it. Finally, market research can help businesses anticipate market trends, allowing them to prepare for changing market conditions rather than be blindsided by their effects.
It Can Help Define Ideal Customers
Of course, keeping customers is just as important — and oftentimes more — than getting new ones. Good market research is important because it serves as a way for companies to better define the people buying and using their products. Indeed, examination into how, when, where and why customers purchase a product or service and what they still want and/or need enables businesses to get a better grasp on their ideal buyer persona; even just collating basic demographic data on customers can help, permitting companies the insight they need, not only to create better marketing materials, but to design better products for them.
It Can Identify Competition
Market research can also uncover details about current and potential competitors within a market. With this knowledge, businesses can strategically position themselves, implementing the strategies that work for the competition and avoiding the ones that don’t. Having a firm understanding of all the probable and possible players in the game means companies can create a winning plan for their defeat.
It Can Strengthen Marketing Practices
Lastly, the reason why market research is important is because it helps strengthen brand recognition through the creation of better marketing practices. A good research project can inform the design of meaningful advertising materials and engagement strategies using data gleaned from research feedback. Knowing consumers’ specific interaction preferences — what works and what doesn’t — empowers businesses to meet market needs in ways that garner more attention and more response.
Want to Learn More?
The bottom line is this: market research is important because it helps companies plan for success. With actionable insights from well-devised and well-executed market research studies, businesses can create more meaningful opportunities for customer engagement, improve their products and services and, ultimately, magnify their sales. Our team here at Communications for Research (CFR) has over 20 years of experience designing, administering and analyzing market research projects; we can help your company gain actionable insights that lead to improved ROI. Please contact us to learn more.
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