Market research can be defined as a systematic collection and data analysis relevant specifically for business marketing situations. It is always a major factor in business success. In launching a new business, it is important to conduct extensive market research. This research will be included in a business plan. The benefits of having extensive market research can be the main contributor to business success. Here are some values for research.
– Helps you estimate your business potential. Market research provides direct information about your business opportunities. This creates an overview related to your target customer. This can include; their purchase habits, brand loyalty, consumer trends; Business environment, competition, market saturation, macroeconomics and political perspectives, and legal issues. In addition, research can include fields such as tax, inflation and government regulations. Effective market research efforts will be reasonably predict the proposed business profitability.
– Helps you get investors. Investors generally want value and security for their investments. Investors know the risks, they are willing to invest so they are satisfied that this risk is minimized. Having an effective market research program makes investors feel that their investment is safe. He also said you have done your homework and you are competent to handle their investments in your business.
– Helps you design a marketing strategy. The effective market research process gives you information about demographic / population distribution, behavior, preferences, and your target customer’s insights. This information is the path of your business life and will allow you to create a marketing strategy that suits the situation.
Market research is very important for any business success. In gathering information, always consider the most important.
1. Market size
The rate of research may depend on market size. Also, the target market must be respective as possible. Larger markets tend to be very varied but very competitive. Consumer differences must be detailed by your research as much as possible.
2. Market demands and preferences than just needs and desires. This is defined as “desires / needs” for certain products, supported by purchasing capabilities. Effective market research efforts must review not only consumer needs and desires but also define the estimated market demand.
However, the estimated market demand is difficult to access. Competition provides consumers with alternatives and with these preferences for certain brands can be defined by many factors. Market research must reveal and document these factors. In addition, research must also handle competitors’ product offers, and may find defects that can be exploited to create opportunities for your business.
3. Market positioning and segmentation are defined as having the right retail / distribution location for business. The most important factor here is customer access. Effective market research must include possible locations that can be supported by data collected.
Position is also difficult to research. Market segmentation is the key to an effective position. This can be defined as the target allocation of customers with unique groups with each of them having the same characteristics or trends. Different market segments may have different demands and may require different marketing strategies. Thus, knowing which market segments target in positioning your business is very important.
This important concept must also be handled by research. Market research is indeed a must, and this must be given with the best professionalism and expertise. With focused and dedicated business owners, combined with quality research and analysis produced, business success is not really a chance problem