Market research is the process of gathering, analysing and interpreting information about a market, product or service to be offered for sale in that market.
It looks at the past, present and potential customers for the product or service.
It helps you gain an insight into the characteristics, spending habits, location and needs of your business’s target market, the industry, and the competitors you face.
Why should market research be carried out?
Market research provides critical information about your market and your business. It can tell you how your company is perceived by the target customers and clients you want to reach.
It can help you understand how to connect with them, show how you stack up against the competition, and inform how you plan your next steps.
Market research can also play an important role in the process of developing your products and services, bringing them to the marketplace, and marketing them to consumers.
It allows you to evaluate what your competitors are doing well.
It can help you decide whether a new idea for a business or product will fly based on how similar products have performed in the marketplace.
It can help you make wise product packaging and promotional decisions, as well as effective marketing messages.
For many businesses, market research is a key component in developing marketing strategy by providing a fact-based foundation for estimating sales and profitability. In fact, it can make the difference between making wise decisions that drive business forward and poor decisions that can damage your business.
The competitive environment you face is increasingly challenging. It’s safe to assume that your competitors are conducting research to gain their own advantage. That may be the best reason of all to make market research a key part of your business growth strategy.