September 1, 2021
Why Every Business Needs to Conduct Market Research
Before we dive into why market research is important, let’s start by clarifying what market research is. To put it simply, it’s the process of collecting, studying, and applying relevant data/information to overcome, resolve, and avoid any marketing obstacles that may arise. The research itself could be based around a product, a consumer base, a competitor, or a particular field, and it is a vital step that every new business must undertake to understand their audiences and cater to their needs.
But, is ongoing market research really important?
The short answer is, yes. To maintain a successful business and remain afloat, regular research and insights into the wider marketplace is a must. As time change and trends come and go, so does the competitive landscape and customers’ preferences. Therefore, to keep hold of a customer base and remain relevant, a business must adapt to the changing external environment. The only way this can be achieved is through conducting ongoing market research.
A testimonial of the importance of regular research, will be the example of the “once-upon-a-time” successful companies that took market trends and consumer preferences for granted and faced bankrupt e.g. Blockbuster and Nokia.
These two companies were extremely successful at one point, but what they both had in common was their lack of market research which led them to their current state – forgotten by consumers.
How can market research help a business?
Now that we’ve covered the ‘why’, one question that raise itself is how can market research help a business?
To achieve business commercial objectives, there needs to be marketing and promotional activities at some point right? In order to effectively target the right audience and successfully deliver positive outcomes, managers must have a clear understanding of the consumers needs as well as purchasing behaviour. This will also ensure that the correct form of marketing is used, because a well-prepared marketing campaign can benefit a business in multiple ways:
- Brings clear insights into consumers needs and expectations.
- 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 to Do Market Research for A New Business or New Product?
Now that we’ve gone over the importance of market research for a successful business, another question that new business owners might raise is, how to go about doing market research for a new business or new product/service. One way to get started is to answer the following:
- Who are our customers?
- What do our customers need?
- Why do my customers need it?
- Why will customers buy from us and not our competitors?
- Where are my customers from?
- What factors influence customers buying decisions?
Answers to the aforementioned research questions could be acquired from two sources: 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.
The choices of research techniques are entirely up to the type of your business, the available time, cost and resources. However, using a combination of both is more recommended to allow an adequate amount of information to make informed decisions. When starting up a new business in particular, special emphasis should be paid to the competitive landscape. You must have a clear idea of what is already in the market so that you’re aware of any direct and indirect competitors. By simply knowing what is out there, you can figure out what niche you’d like your business to be focus on and which approaches, strategies and tactics to employ in order to win your customer base and build proper positioning.
How much does market research cost UK?
So, how much does market research cost? Depending on whether you are based, the cost of market research can also 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 the following:
- What industry your business operate in, and what outcome and goals are you hoping to achieve from the market research being collected?
- What method of research does your business require? (This can be demonstrated through primary and secondary research as mentioned above).
- How many participants and sample size you require?
Many successful businesses outsource their market research activities as they’re more comfortable with leaving that side of the business in the hands of trained market researchers and analysts. However, there are also exist affordable alternatives to conduct your own primary research through online survey tools. As for secondary research, various free-market research reports can also be found online that provide free insights and summaries.
How to Download Market Research Reports for Free?
Websites such as Marketresearch provide market research reports for free on public domains. Some companies also provide free reviewed information that the public can browse through e.g. Deloitte Industry Outlooks, Bloomberg Intelligence and EY reporting and Megatrends. Other free market research reports can also be accessed through governmental agencies portals such The Office of The National Statistics and National Archives etc.
There are also search engines such as Google, that have provided their users with report analysis programs such as Google Trends, where you can export reports for free in excel format.
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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