Why Every Business Needs to Conduct Market Research

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Before we dive into why market research is important, let’s start by clarifying what market research is. Research in itself is a vital step that every successful business is required to undertake to understand their audience as well as cater to their requirements. So, what is market research? To put it simply, it’s the process of collecting, studying, and translating relevant information to overcome, resolve, and avoid any marketing obstacles that may arise. The research itself could be based around a product, a consumer or competitor, or a particular field. However, regardless of what it may be, for any company to succeed, there needs to be an undoubtful amount of marketing research. 

So, is market research important?

The obvious answer is, yes. Market research is vital. To maintain a successful business or company and remain afloat, regular market research needs to be done. To excel the business’s best potential, there needs to be a clear understanding of the targeted markets as well as their competitors. 

Remaining relevant is one of the most important factors for a successful business. As the times change and trends come and go, the targeted markets change. So, to maintain those markets, a business must adapt and alter to fit the current trends that will allow their business to further succeed. The only way that can be achieved is through forever developing market research. To put it simply, the reason why market research is important in business is that, without the research, the business cannot develop nor excel. In other words, the market research a business carries out can be considered the legs of the business, and without those legs, the business will not be able to go anywhere.  

Some may assume that market research is the least of their issues when starting a business, however, there have been multiple once-upon-a-time successful companies that anticipated the same attitude, and are now considered bankrupt. One thing we’ve all learned is that a business is never too popular or too successful to fail, a clear example could be Blockbuster or even the mobile brand of Nokia.

Although those companies were extremely successful at one point, what they both had in common was their lack of market research which led them to their current state – forgotten by consumers. So, if you’re still wondering why you should do market research before starting a business, the straight answer is so you can avoid watching your business plummet like the aforementioned ones.  

How can market research help a business?

Now that we’ve covered the ‘why’, let’s dive into the ‘how’. How can market research help a business? For a business to progress within its field, there needs to be an understanding of what the consumers of that business want. The consumers’ needs must remain a priority, but for a business to understand what their consumers’ needs and demands are, the correct form of marketing must be used. For example, a well-prepared marketing campaign can benefit a business in multiple ways: 

  • Brings clarity in regards to what the consumers want 
  • Recognises any competitors 
  • Identifies any possible business opportunities which weren’t previously recognised  
  • Minimises the chances of any marketing obstacles  

By undertaking the correct marketing research, the business is more likely able to have a clear view of their objectives as well as a better grasp on current trends that will benefit the business’s capability of satisfying their consumers and targeted markets.  

How can market research help a business?

Now that we’ve covered the ‘why’, let’s dive into the ‘how’. How can market research help a business? For a business to progress within its field, there needs to be an understanding of what the consumers of that business want. The consumers’ needs must remain a priority, but for a business to understand what their consumers’ needs and demands are, the correct form of marketing must be used. For example, a well-prepared marketing campaign can benefit a business in multiple ways: 

  • Brings clarity in regards to what the consumers want 
  • Recognises any competitors 
  • Identifies any possible business opportunities which weren’t previously recognised  
  • Minimises the chances of any marketing obstacles  

By undertaking the correct marketing research, the business is more likely able to have a clear view of their objectives as well as a better grasp on current trends that will benefit the business’s capability of satisfying their consumers and targeted markets.  

why market research is important - Rawlift Digital
Source: Undraw.co

To understand what your consumers require from your business, two main forms of research can be carried out; primary and secondary research. 

What is primary research? It’s the direct approach businesses take to know more about their consumers, for example, through polls presented to the public, direct contact with consumers via phone calls or surveys.  

What is secondary research? This kind of research can be found through website reports and other legitimate written reviews from within the industry.  

Although there are two main forms of research and the choice is entirely up to you as for which one you choose to use for your business, we advise the use of both to tackle all and any marketing difficulties your business may face due to the lack of it. 

When you’re starting up a new business, you must have a clear idea of what is already out there so that you’re aware of what your competitors are offering the current market. By simply knowing what is out there, you can figure out what niche you’d like your business to be involved with as well as create your unique approach.  

Market research for a new business will usually consist of five main steps: 

  • Understanding and categorising your consumers 
  • Identifying consumer categories and engaging in market research 
  • Present the consumers with market research-based questions 
  • Distinguish who your relevant competitors are 
  • Recap, summarise and apply your research 
why market research is important - Rawlift Digital
Source: Undraw.co

1- Understanding and categorising your consumers 

Optimise your marketing skills to reach the targeted consumers effectively. To identify which category each consumer falls into during the grouping process of participants, research about the consumers’ age, gender, geography, and occupation should be identified. Although these categories are useful, you are not limited to them, so feel free to group your consumers as specifically as you see fit for your market research. 

 

2- Identifying consumer categories and engaging in market research 

You should aim for a minimum of 10 active consumers per category. These active consumers should be a mix of people who have made purchases from your own business or a similar purchase from a competitor, and people who have placed your product in their basket, however, have decided not to go through with their purchase. 

The idea of pestering people for feedback may seem irritable, however, there are many ways to gather consumer feedback through multiple platforms, such as using social media for a call-out post to gather participants. The use of incentives is proven to be successful for many businesses, as people’s time is precious, therefore, you must think outside the box of what you can offer these participants in return for their time. Your incentive can be anything depending on what your business industry is and what you’re willing to offer, for example, a business that specifies with perfume may offer their participants a free sample for completing their feedback. 

 

3- Present the consumers with market research-based questions 

Once you’ve gathered these participants, you should have a prepared set of market research-based questions. These questions should be open-ended, avoid using any ‘yes’ and ‘no’ questions as you’ll be limiting your research based on your assumptions rather than allowing your participants to express their feedback freely without any limitations.  

 

4- Know who your relevant competitors are 

A common mistake many new businesses make is assuming that an entire company is their competitor, rather than identifying the division within the company that could be considered as a competitor. So, avoid generalising multiple divisions of a company and try to focus on a division that is considered as a primary competitor. When you find those competitors, you should identify the differences between your business and theirs, and understand why their content is considered more trustworthy or highly respected by search engines such as Google. Once you’ve gathered your examination of those competitors you should aim to integrate those common successful factors which they share, into your business. 

 

5- Recap, summarise and apply your research 

When you’ve completed the first four steps, the fifth step is to make sure your research doesn’t go to waste. Recap everything you’ve explored and searched and created a clear summary of your findings.  

Think about sorting your research out into categories as it brings clarity when trying to identify and view what has been gathered. When you feel that you’ve summarised and understood the market research you’ve undertaken that is when you should apply that newly uncovered knowledge of the current targeted market into your business.  

Market research for a new product can determine whether your product will succeed on the market. Your research should be able to identify whether any competitors have the same product on the market, and if so, what are their tactics and approaches when it comes to selling?  

Questions you should think about before your business releases a new product on the market are: 

  • What are your competitors doing that is attracting consumers? 
  • How can your product be just as successful if not more successful than what’s already out there? 
  • What will take your product to the top of the market? 
  • How can you use the marketing techniques and tactics to successfully launch your product? 

 

By answering these questions you’ll be minimising the risk of a failed marketing strategy. The purpose of market research is to be able to conduct a cost-effective scheme for your business. Therefore, by planning ahead of time and conducting the correct research you’ll be able to avoid the risk of a failed launch for your product.  

How much does market research cost UK 

So, how much does market research cost? Depending on whether you’re in the UK or abroad, the cost of market research can vary for multiple different factors. When reaching out to a marketing agency many aspects must be taken into consideration. To avoid complications, you should be prepared to answer questions like: 

  • What industry does your business fall into, and what outcome and goals are you hoping to achieve from the market research being collected? 
  • How many participants does your business require? (This is usually based on the size of the business as well as your preference for how vast or specific you’d prefer the market research to be.) 
  • What method of research does your business require? (This can be demonstrated through primary and secondary research as mentioned above.) 

Many successful businesses reach out for market research as they’re more comfortable with leaving that side of the business in the hands of CMO’s who are trained within that profession. However, there are always alternatives when looking for an affordable option. Depending on what industry and field of market research you’re looking for, many free-market research reports can be found online that provide free insights. 

Websites such as Marketresearch provide market research reports for free on public domains, as well as this, some companies also provide free reviewed information that the public can browse through. Another way to access market research reports can be done through the use of government data, as that information is open for public access. 

There are also search engines such as Google, that have provided their users with report analysis programs such as Google Trends, where it is applicable to download market research reports for free. 

Conclusion 

It’s very clear that market research is an important factor within every industry, especially when businesses are aiming to further develop their brands. The power behind market research is key when planning a strategy to push any business forward. It is too important and too beneficial to be an ignored or underrated aspect for any business.  

Until next time.

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