Market research is interpreted as a process of gathering and assembling data on goods and services. This data is collected to help you decide if your product or service is able to fulfill your target customers’ needs. Market research helps you recognize present and future market trends, demographics and potential shifts in the economy. It also helps you to keep track of the customer’s buying habits and vital information about your competitors. This information can be used to help you define your target market. It will be used to give you a competitive advantage in the market.
Successful startups should sell their products and services based on customers’ needs. And they should continue to do so in the future. Every startup on the market wants or has the ambition to be successful. The same questions come to mind of every entrepreneur:
- Will my product satisfy a need?
- Will someone use my services?
- Who will buy my product?
- What pricing packages should I offer for my product?
- How to notice trends in my industry?
- Who are my competitors and what do they do to succeed?
The data that is gathered through market research is not just something to have in order to be “up to date” with the industry. Yes, you need to be up to date, of course. But this valuable data is going to help you make the best calculated and tactical decisions for your business.
By researching the niche market of your business, your customers, and your competitors, you can discover every unmet customer need and consequently, you can discover new and more innovative ways on how to pitch your product and even how to improve it or create a new one.
Only by researching the market thoroughly, you can minimize business risks and you can save yourself and your new venture from making expensive mistakes.
Without further ado, here’s how market research really helps your business:
Market research helps you interact with your target market
How can you communicate effectively with your target customers? Through effective marketing campaigns, of course.
By investigating your customers, how they spend their money and what they want to buy, you’ll find it less difficult to create marketing campaigns that will align with their purchasing habits. You have to know what customers do.
People buy from people. You might as well find out that your target customers have the exact same interest that is aligned with your core business model. Having that information will only benefit to your communication with your target customers.
Market research helps you recognize and comprehend opportunities
Opportunities exist in the marketplace. They’re out there. You just have to discover them. For instance, with a market research, you can spot an opportunity to start a business or move your existing business to a location that you would’ve never thought of before, where the competition is small or there is no competition at all.
And more important than everything, market research will answer the question whether your business is ready or not for your target market and for a specific location.
Market research helps you identify potential obstacles or problems in your business model
By obstacles, we don’t mean only problems with the business concept itself. We also talk about competitors, hidden direct or indirect competitors that are not easy to spot at first glance. These guys can easily impede your capability to form a competitive advantage in the marketplace.
You can also discover what the big-time competitors are doing, and what they plan to do in your target market location. This information is essential to discover it because it will help you reduce every short-term and long-term financial risk within your venture.
Market research helps you standardize and assess your success in the market
By finding out the size of your target market, who are your customers and what your competitors are doing, you’ll find it easier to set your reach goals, you’ll cultivate and grow your customer’s base and you’ll find out what is your market position in comparison with your competitors.
Whether you’re starting a new venture or you want to expand your existing venture in new markets, market research can give you precious information to help you create a powerful business plan.
You have to be aware of the size of your industry, whether it has any growth potential and how your business can operate in it. Customers and their characteristics are an important information that will help you predict where they spend their money. Whether they’ll want to spend their money on your product. Because your target customers have their motivations. They have their psychological triggers, perceptions, and values that can be deployed in your marketing strategy.
Your competitors and every other political, economic and environmental trend have a huge impact on your target market and your business. Information that is gathered from market research is considered a valuable information that is relevant to your business. The result is nothing less than key decision making that can help you thrive in the market.
Thank you for your attention. Are you an Entrepreneur that wants to start a business or own a company that wants to expand? Do you want to successfully identify trends and competitors and better understand his clients? 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.