What is Market Research?
Market research may be defined as a systemic process of gathering data, analyzing, and interpreting consumers, competitors, target market, and the industry. The outcome of market research is provided in a detailed report and is used to assist new and old business owners in making informed decisions.
Market research report is also beneficial for strategy implementation, improvement in operations, and promotion of customer growth. Market research helps you understand the dynamic preferences, consumers needs, industry trends, and other factors that can help you streamline your resources and efforts. If you deal in the sales of fabrics, for example, and you find out that more customers purchase fabrics using coupons; you may want to send a promotional coupon to your mailing list to test their purchase response.
Define the Purpose of Your Marketing Research
One effective way to carry out market research is to define the purpose of your marketing research. Without a clearly defined purpose, your market research may fail to meet the demands of your target audience and the ever-changing business environment. To define your marketing research purpose, we shall look at three different aspects, including:
– Market research for attracting investors
One of the purposes of market research is to attract investors. For most potential business owners who may need the help of angel investors to get their idea into a salable reality, conducting effective market research may be a great idea.
You can pitch your business to potential investors and provide sterling business proposals by conducting good market research.
– Market Analysis for Searching for an Idea
The significance of market analysis in helping potential business owners develop great business ideas should not be overlooked. With proper market analysis, you can find out the latest industry trend or problems around you that you can solve and make money in the process.
– Market research for testing Ideas
Most great businesses of today began with an idea. But the truth is that not all idea is viable irrespective of how promising they may be. How then can you determine the viability of an idea? To determine if an idea is viable, you may have to carry out market research.
You can do a survey to find out if your product or services may be in high demand by your potential customers.