Every successful product or service that we use today started with extensive research about customers and competitors. Accurate and specific information about customers and competitors is the critical first step in the development of a marketing plan.

Brands and small businesses finally realized that they need to know a lot more about their potential clients. They also need to know more about their market and their main rivals.

When you’re launching a product or you try to improve your existing service, or when you’re just looking to be a step ahead of your competitors, Market Research is the critical component that’ll provide you with all the information that you need to make a better business decision.

In spite of the fact that brands become more aware of its importance, the process of market research can appear extensive. This creates an overwhelming perception in the eyes of small business owners and entrepreneurs.

To clarify, we outlined the 5 things that market research can do for you in the process of product development & business growth:

 

1. Market Research is crucial for better understanding of your customers

Who will buy your product? Who are your ideal customer personas? How often will they buy? What do they need? What do they want, expect?

The more answers you have the more understanding you’ll get. This will result directly in meeting the customer’s needs better than your competitors.

Market research will help you map out the full profile of your ideal customer. Knowledge of your customers will help you determine the market size and what triggers them to buy. You’ll gain valuable insights like their age, location, gender & income, which will help you in creating effectively tailored marketing and pricing campaigns.

 

2. Knowledge of your competitors, and how they approach the market

Who is your competition? Companies that you’re aware of, or not, are taking away your customers and win in the marketplace. That’s because they’ve done their research ahead of you. And now, you need to do the same if you want to stay in the game.

Market research will help you find out who provides the service that you offer or you plan to offer. It will also help you learn if any new competitors want to enter the marketplace.

With an effective market research process, you can predict the competitors’ reactions when you enter the market, and how your customers will perceive your product compared to the competitors.

Market research will find the weaknesses in your competitor’s approach. These are gaps that you can utilize to gain more customers. You can also learn what performed the best for the competition. In turn, that will make you think more creatively while modeling your new strategy.

Knowing as much as you can for your competition will be pivotal to the success of your business.

 

3. Testing your product before launch

 

So your minimum viable product (MVP) is at its final stage, and all you have to do is start marketing and sales right?

Wrong! You can still improve your product/service function and appearance based on customers user experience and testing. Testing is a very important part of learning what works before jumping into the business world. Every business decision should be tested before fully exposing to your target audience. By market testing your idea or product, you will save yourself from additional expenses and most importantly, from delivering a bad product to the marketplace.

You can never be 100% sure that your product will instantly connect with your potential customer. With market research, you’ll find out what approach you should take when marketing the product. You’ll also find the key message that resonates with clients.

 

4. You won’t go out of business

“It is not the strongest or the most intelligent who will survive but those who can best manage change.” – Charles Darwin

We’re not exactly sure if Darwin did some market research in his free time. But, his words are so important and still echoing today in possibly the most innovative era in the history of mankind.

We all saw how giant brands like now-bankrupt Blockbuster, and Nokia that still struggles to get back in the mobile game failed in their market predictions and are nearly forgotten by consumers today.

Netflix and Apple did their market research right prior of any other competitors and utilized every open gap in the movie shows and mobile phone segments.

So, in order to remain in business and stay relevant, you should not only anticipate change, but you need to be able to predict change too. That’s how good your market research needs to be!

 

 

5. Business growth

It takes time to build steady revenue but, as an entrepreneur, at some point, you’ll need to take your business to the next level. You’ll definitely face more competition and drawbacks, just like the competition does.

Market research is a basis that has to be included in your growth strategy, so you can capitalize on the market opportunities that you’ll discover. It will help you develop a new product, a better pricing plan. You’ll discover new market segments and new distribution channels.

Market research helps you comprehend the demands of your customers, detect more business opportunities, plan the perfect marketing campaign, minimize losses, and keep track of the competition. It allows organizations to classify their objectives while following the current trends and take advantage by reaching out to their target audience.

Identifying problems before they happen is crucial if you want to grow. The effective market research will help you predict some of the pitfalls that can occur during the growth process. Will save you a lot of money in the process too. Your solution may look like a proper market fit, but if it’s not the case, you’re in big trouble.

The process of market research itself is designed to reduce the risk and to make the marketing strategy cost-effective for your business.

 

Conclusion

 

In conclusion, Market Research provides us with important information to help us identify and analyze the market needs, our customers, and our competitors.

We hope that this information helped you understand better why Market Research helps companies in making better decisions when they develop and market their products, as well as achieving business growth.

You want your competitors to “eat dust”, so it’s very important to have the insights, to know how to strategically position your business in the marketplace.

 

If you are an Entrepreneur that wants to start a business or own a company that wants to expand, wants to successfully identify trends and competitors and better understand his clients but still not sure where to begin, BizzBee is here to guide you through the steps that will help you differentiate from your competition. Our expertise is in working with Entrepreneurs and Start-ups and we can guide you throughout the entire process.