8 Big Reasons You Should Invest In Doing Market Research
Market research is the pillar to benefit from using marketing mix or the four (4) main tools to market your business.
It is what will prompt you to identify essential and critical information you need to use the 4Ps – product, price, promotion, and place/placement (consumer, cost, communication, and convenience). Hence, you are better off investing in marketing research.
Here are 8 big reasons you should invest in doing market research:
- Researching about your potential or existing market enables you to identify your consumer or understand what product would bring your business high profitable returns.
You’ll be able to figure out what product your target market needs or want or who your potential customers are. If your business is already up and running, you’ll find out from marketing research all the information to identify the limitations or flaws of your product(s) or the expectations of your customers.
- Through research of the market, you’ll figure out the best price for your product(s) or the cost by which you would earn profitably.
It can give you key information about your competition so that you can set your price reasonably and competitively. You can also use research results to bring down the cost and widen your margin of profitability.
- Minimize risks and make the best decisions using the data analyzed from the research of your market.
Deciding based on gut feel is acceptable, but there are certain decisions that require a scientific way to arrive at, and to prevent losses.
- Investing in market research empowers you to strategize well in reaching your target audience. You’ll be able to promote your business or communicate with your customers more effectively and efficiently.
To create your strategy in promoting your business, you need the demographic profile of your target audience. You can obtain this information through research, such as surveys, online questionnaires, and phone or personal interviews, among others.
- The success in using product placement as an effective marketing tool or strategy depends largely on research.
Promoting your product(s) using non-conventional methods becomes cost-effective when you gather the necessary data through research. Further, with the right information of your market, you’ll be able to minimize resistance of those who view product placement as unethical or misleading.
- Spot opportunities with research. The world of business is dynamic, and each moment that passes can bring opportunities. Why allow these opportunities to pass you by when you can decide to invest in marketing research?
Through data and statistics gathered and analyzed from research, you’ll know the preferences of your target market. You can also forecast or anticipate what their future needs or wants are, and create the appropriate solution for such. You’ll be able to break away or get ahead from the competition this way.
- 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 provide you the solutions you need to address the challenges such as:
a. How trends influence your business,
b. How to increase your share of the market,
c. How your customers or potential market make their decisions to buy or purchase,
d. How does your customer service measure up against your competition,
e. How you can attract and get new customers,
f. What the best marketing strategy to reach your audience and increase the profitability of your business is
8. You need research to get the necessary funds for your business.
Whether you are starting a small business or expanding your existing business, you need the information and statistics you can get from researching your market to create your business plan.
The goal of every business is to get a return on their investment. This you can do through making wise business decisions. The insights you need as well as the statistics and data to back your decisions, all these you can gain from investing in market research.