Market research is the process of gathering, recoding and analyzing information about problems of market, products or services and about behavior of past, present and potential customers. It is very essential for every firms to run their business more efficiently and exist in market more effectively.
When it comes to importance of marketing research and gathering information, marketing research is the very important process for every organization to reduce the risk of market and to make marketing strategies effectively. It is a critical component when a product is gonna be launched & improve the market position of your brand when you wanna be a step ahead of your competitors. And also, there are a lot ways to consider why the market research is important for an organization. Such as;
To test a new product before launching.
It is important to identify new opportunities in the market. Thereby, an organization can introduce innovative products & test the products before launching to identify maximum benefits from these opportunities in order to expand the business against competitors.
To make better understandings on customers
It is important to know about customer’s feedbacks of the relevant products to identify about changing values and behaviors of customers. Therefore, by collecting and analyzing customer’s feedbacks, as an organization you can identify about problems and customer’s ideas on your current products and your market. In here, mainly, you need to understand on more answers for particular questions; Who will buy your products? Who are your ideal customers? How often will they buy? What do they expect? Hence, base on your answers for these questions, you can improve good relations between you and your customers with their positive feedbacks by meeting their needs, solving previous problems of their products and market. And also, by analyzing and identifying about changing values and behaviors of customers, you are capable of understanding about new customer’s needs and wants, orientation, preferences and habits in order to produce innovative products and expand their market rather than competitors
To know about the competitors & their strategies to approach the market.
It important to identify the developments of competitor’s strategies. It means that the market research always helps for organizations to continue a good competition among competitors. Remember, if the competitors have done their market research ahead of you, they can take away your customers and win the marketplace more than you. In this case, you need to do the same to be survive in this contest. Hence, you can find weakness points of your competitor’s approach & you can learn what are the strategies to preform against competitors in order to keep steps ahead of your competitors with an eye to captain in the market. These things are needed to do based on your proper market research.
To set better goals.
If you are an owner of a business, you need to set goals which is typically related to growth in sales and customers for your business. Just assume, without any market research, can you set goals for business? can you identify whether the goals can be achieved or not & can you identify the way how to achieve the goals. That’s why, It is important to do market research before setting any goals mainly regarding sales & customers growth. As an example, just imagine that you need to double your sales by end of the quarter or year. With proper market research, it helps to identify sales performance and sales weakness of your organization. Market research will help you to find answers to overcome sales weakness, identifying better promotional methods, distribution methods and pricing methods. On the other hand, you need to identify your potential market size based on your market research. Then only, you will be able to determine the ways to improve the customers base with doubling your sales. If you have not a proper idea regarding your potential market. It means, you haven’t done a proper market research. Hence, you’ll just be setting arbitrary goals.
To improve the ability of decision making
And also, it is important for marketers to improve decision making ability. It means, marketers of an organization can measure the success of their decisions by doing market research. If the decisions have any doubts, the marketers can analyze their decisions by researching market to solve it and can make right decisions, improving their abilities of decision making.