Market research will allow you to properly execute your marketing strategy. Here are 6 reasons why you should invest in market research:
- Identify your potential market.
- Researching about your potential or existing market enables you to identify your consumer or understand what product would bring the most value to your target audience. It may also allow you to determine the limitations or flaws within your business, product or service, particularly within the lens of the market.
- Determine your price.
- Through research of the market, you’ll figure out the best price for your product(s), or more realistically, your profit margin. You need to manage both market and profit expectations when evaluating your pricing strategy.
- Minimize risk.
- Minimizing risks and make informed market decisions using your market research. This will allow you to create objective go-to-market strategies.
- Market to your target audience.
- Marketing research will allow you to promote your business or communicate with your customers more effectively and efficiently. When building your marketing strategy you should leverage the market and demographic information of your target audience to increase your in-market effectiveness. Communicated and engage with your target audience through surveys, online questionnaires, focus groups, mystery shops and even internal phone/personal interviews.
- Discover opportunities.
- Business is dynamic and market research can help a company realize and assess opportunities within the market place. By analyzing data and statistics gathered from market research, you can forecast or anticipate future market needs. First-to-market or a competitive advantage may be a result and a profitable one at that.
- In researching your market, you’ll overcome challenges by getting reliable answers. The answers shall serve as your key to create the right solutions for these challenges.
Market research can also provide you with the following information:
- Market share and trends
- The decision-making and sales process of your target audience
- Competitor profiling
- Customer service ratings (compared to your competition)
- Marketing and sales tactics that can retain prospects
- The most effective (or memorable) marketing tactics
Whether you are starting a small business or looking to expand your existing operation, you should utilize market research to help you create an actionable marketing and business strategy.