Whether you are presently running your own business or just planning to start a new one, market research will show exactly what you need to know to make your business a success. It is not that market research is meant only for big businesses, even small businesses can benefit from it too.
What? & Why?
Market research is an activity to find information and guidance that helps to manage and grow your business effectively and successfully. Thorough research, analysis and clear report about a market, present and past potential customers need, products/services offered, and competitors in the market gives transparent understanding and better idea of the market trends and happenings in the industry environment.
The need for conducting market research is to find out the effective market strategy, product development, identifying potential customers and understanding existing customers. This helps reducing the risk of making wrong decision and take possible action to find the feasibility of the project as well as key target market information.
It helps to understand whether the service/product which you offer is likely to create a demand in the market and reduces the risks associated with a new business.
Market research estimates a clear insight about the following
Who are your target customers?
Where they are located?
What was their exact requirement from your service/product?
What was customers’ opinion on your business?
How can you reach them?
What type of marketing strategies is effective?
Identify fruitful opportunities and difficulties.
Checking out for your competitors, their prices and offerings they provide.
Determining Market Research Insights and Methods
Start-up ventures before sowing their invaluable money and time into unknown; they should develop a sense of their market area which includes market size, competitors, potential barriers and risk factors. In this fast moving market, you should be keeping informed about latest trends and to get grips with the emerging market options, where every entrepreneur better their chances of getting the clicks. To take a new business in the right direction and on the right track is being objective of your business plan.
However, in order to strengthen a business plan and reliable information on target market it is vital to prefer primary and secondary market research. Conducting such research reveals where to land in the market.
Primary market research involves preparing questionnaires, surveys or interviews with individuals or small groups. The methods of gathering information are through emails, personal interview and telemarketing.
Secondary market research has been researched and compiled earlier for other purpose and available publically. The sources of information include universities or government reports, trade association records, on-line/internet surveys, published research reports in a library, and newspaper and magazine surveys, etc.,.
Overall market research helps in locating the market marketing problem; analyze/investigate the problem; planning to solve the problem; techniques used to overcome the problem; finally market research helps to reach the target market. All these help small businesses and industrialist to fuel their growth and redefine their strategic path towards its success.