Take Google, Apple, Microsoft and almost every major multi-billion company across the globe, what do all of these have in common? Their unrelenting focus on monitoring the changes in consumer behavior and adjusting their product/service around it. Without this quality, none of these firms would be where they are now. Answering questions such as – What product is trending in the market? Where is the most active location for the sale of your product? What advancements are people starting to look for? What does the competitor offer? – are the key to correct investments and successful business start-ups. A thorough market research can help you with this. However, like every other business aspect, there are 2 sides to this coin.
In order to be a successful and ever-growing entrepreneur, you need to be able to take risks. There is no business start-up or expansion without a certain risk factor and as a leader, you should always be prepared to do the needful. Although, by implementing market research, you can substantially mitigate risks. This doesn’t mean there will be no risk involved, but acting on proven facts rather than assumptions can assure your business a better future. Market research provides you with the correct insight and helps you to confidently make decisions regarding your firm.
Having said that, it is also an undeniable fact that a market research can be quite expensive. This is one of the main reasons why certain companies refrain from carrying this operation out. For new start-ups, this cost can be intimidating. There is always the option of having your employees carry out the research but it would still require resources and high capital. Yet without a market research, you might lose your investment if the company fails to meet the demands of customers. Therefore, it is better to place your money in a market research, rather than an uncertain business plan.
Improving sales- every business has a long list of aims and goals that they strive to achieve 24×7 and improving sales is the first and foremost goal on each of those lists. In order to maintain customer loyalty and tap into new potential markets and target audiences, your product needs to be updated time-to-time to assure that it fits the liking of the customers. If you are selling old and inferior products, then no matter how strong a tactic you use, customers will be attracted towards your competitors that are able to keep up with the trends. A good way to do this, is through a market research. This will show you which features customers are more attracted to and what variations can you bring to your product. It will inform you of the viral trends and upcoming demands which can help you intrigue your target audience.
Researchers often use surveys and questionnaires to obtain this data. The problem with this method though, is that it can only target a small population. The one issue that researchers often face, is the lack of respondents. It is easy to figure out the target audience and quota for a particular survey but it is a tricky and worrisome job to get these people to fill out a questionnaire. Another drawback of online surveys and questionnaires is that the data might not always be 100% accurate due to identity thefts and untruthful opinions. Even so, to solve this hitch, researchers now use a thorough screening criteria. This helps to rule out any fake identities and increase accuracy of the study.
The best way to grow your business, is to continuously tap into new markets. Every company has a brand image and reputation and by using the proper rebranding techniques, you can include new customers to your list. A market research can be tailored to fit this need. Once you know what customers think of your brand, you can work on changing the needful. Building up a good reputation right from the beginning is essential for new business start-ups. It is important that you make your company and your product look pleasant and approachable as to attract maximum crowd. Through a research, you can understand the perception that customers have about your company. Satisfied customers will eventually promote your brand within their circles and this chain effect can grant you a wider span.
Therefore, there are both advantages and disadvantages to a market research. Yet in the longer run, this is the one expense that can do wonders for your company.