Importance Of Market Research Before Starting A Business
There are lots of aspects to starting a business. Market research is one of these aspects. It is an important one that should be high on the priority list. So what is market research, and what does it provide to a business? Market research is the practice of evaluating the viability of a new service or product by interviewing prospective customers firsthand. Market research enables a business to identify the target market to obtain consumer comments and other input regarding their interest in the good or service. Starting a business just because it looks profitable is a bad practice and most likely will result in a failed company struggling to maintain itself.
What Benefits Does Market Research Provide?
- Maintain A Customer-Centric Approach
- Connect With Your Audience More Effectively
- Identify Opportunities For Growth
- Reduce Risks By Testing Concepts
- Make More Informed Decisions
- Compete More Effectively
- Stay On Top Of Trends
Main Types Of Conducting Market Research
- Primary Market Research
- This type of research includes focus groups, polls, and surveys.
- Secondary Market research
- This type of research includes articles, infographics, and white papers.
- Qualitative Research
- Provides insights into how customers feel and think.
- Quantitative Research
- Quantitative research employs numerical data and statistics, including website views, social media engagement, and subscriber counts to gather information about the customers.
How To Conduct A Market Research?
Assume you decided to conduct market research but can't decide where to start. Here are the most important steps for conducting market research.
- Define Your Research Objective
- Businesses may do market research for a variety of reasons.
- Clearly define your objectives for conducting market research and what you aim to gain.
- Want to evaluate company risks?
- To resolve specific problems?
- To open up new opportunities for your business?
- Develop Your Research Questions
- Create a list of research questions for your market, clients, and rivals after you have decided on an objective.
- These questions must follow your research objective and should not be about irrelevant topics.
- Gather Your Research Data
- Use the research questions and start gathering information about the market.
- Some data gathering methods that you can use:
- Focus Groups
- Field Trials
- Interpret Your Findings
- In this step, you will organize your findings and interpret them. In essence, what have you learned?
- When organizing and arranging your data, you must keep your research objectives and aims top of mind. Find strategies to organize your data better; doing so will make it simpler to draw conclusions in the future.
- Draw Conclusions And Make Decisions
- After interpreting all the gathered data, you need to review, summarize and make decisions.
- See if the result aligned with your research objectives defined in the first step.
- Make sure your data are accurate and without gaps.
- Examine the main trends or issues in your market or sector.
- Analyze any potential advantages, disadvantages, strengths, and threats.
- Select the strategies that will make up your marketing mix using the information you have gathered.
Don’t know where to start? Just send us a message through our website, and as ORPTech, we will gladly help you to pick a starting point! (https://orptech.com/en)