5 reasons every business should conduct regular market research
Whether youâ€™re launching a new venture or looking for ways to boost your sales, market research is integral to the success of your business.Â Knowledge is power.
Market research refers to the collection and analysis of information about your target market, your competition and your business environment. Market research is the best way to identify market opportunities to make informed decisions about the future potential of specific products and services. Research findings guide important strategic decisions and can be used to develop business strengths, eliminate weaknesses and create new opportunities.
Market research results have a value that far exceeds the cost of the research itself.
Popular global companies such as Cadbury conduct market research regularly to stay in touch with their target market and ahead of the competition. Cadbury’s philosophy is to continue as a driving force in the confectionery market, and to do this the company must constantly analyse its offerings. Cadbury recently launched a new product called â€˜Marvellous Creations Banana Candy, Peanut Drops and Choc Biscuitâ€™. Whether they continue to market the product depends on the response of consumers, who are encouraged to register their opinion of the new Marvellous Creations product online.
Read on for the 5 main reasons every business owner should conduct market research.
1.Â Market research guides communication with your customers
The results of your research give you valuable information to realise and develop the most effective way to communicate with your customers. You discover exactly what they like and what they donâ€™t like, what they do and where they come from. With this knowledge, you can tailor your message to compel them to take action.
2. Market research minimises your risk
Research can reveal the potential success or failure of a particular product in the early development stages. You may find the market is already saturated with a similar product. With this invaluable knowledge, you can then decide to modify your product prior to launch, or discard the idea and move on to something more relevant.
3. Market research measures your reputation.
Staying ahead of your competition is critical. Market research shows you where you stand with competitors. If necessary, you can then take action to change the perceptions of consumers with a strategic marketing campaign.
4. Â Market research helps to establish trends
Every business should conduct market research periodically to maintain an understanding of market trends. Ongoing research results allow you to analyse your customers and establish particular buying and behavioural patterns.
5. Market research allows you to examine business problems
If youâ€™ve identified a product or service that has experienced a drop in sales or hasnâ€™t received the market response you expected, market research allows you to identify the source of the problem. You may discover that brand awareness has decreased, a new competitor has entered the market, or a substitute product is now available.
Market research is imperative at all stages of the business life cycle, allowing you to identify new opportunities, minimise risk to your business, and keep an eye on your competitors.
At Farron Research we provide market research recruitment services for every business and organisation throughout Australia. Contact us today on 02 9651 4660 or email us now for access to a database of over 200,000 pre-qualified research participants for your research study.