Why is Market Research Important for a Business? We give you the Top 10 Reasons.

Why is Market Research Important for a Business? We give you the Top 10 Reasons.
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Gepost in Gastblogs

When we think of a business, many of us would rather start selling products right away than thinking about the market first. Spending time or money on market research is the last or least thing which comes in our mind.

Why is Market Research Important for a Business? We give you the Top 10 Reasons.

When we think of a business, many of us would rather start selling products right away than thinking about the market first. Spending time or money on market research is the last or least thing which comes in our mind.
Market research is an important step for every company. This is particularly apt for small companies, where the first few months can be crucial. Market research helps the start-ups/ new companies get sales and lower the risk of loss. We outlined a few things that market research can do for you in the process of product development & business growth.

Here are the top 10 reasons why market research is important.

1. Easily Spot Business Opportunities
After you’ve opted for market research, the following things will be clear to you:
- Who you want to reach out to (your target audience),
- Where you can reach them (your marketing channels), and
- What they're interested in.
The more answers you have, the easier it’ll be for you to be able to spot business opportunities.

2. Lesser Business Risks
“Market Research” is the proper way to make sure that you face less or no losses, and your business survives for longer. With this,

- You can never be 100% sure that your product will instantly connect with your potential customers. With market research, you’ll find out what approach you should take when marketing the product.
- A survey of former clients or organizing a focus group to figure out why you're not getting repeat business is one of the helps Market Research does.
- A time comes when you see a huge drop in demand for one of your popular products. The reasons could be anything such as quality issues, pricing issues, and many more. You won’t get to know the exact reason unless you ask. Market Research helps you know the reason behind the decline in sales.

3. Create Relevant Promotional Materials
Many times, the problem small businesses face is ‘a limited budget’. One needs to spend the given budget precisely in a way that they get proper results from the promotional activities they have invested in, and also have enough money left for further functioning. When you know about your audience, your region, your company, and product market size, you will be confident enough to invest in relevant promotional materials.

4. Know Where to Advertise
If you’re into a new business, and planning to advertise your new venture, what would you do? Advertising all over the city or everywhere on social media never works. Market Research helps you know your target audience according to their demographics, region, and size. How? Read here…
These are some of the monetary tasks that your market research helps with:
- If your market research shows that your audience spends most of their time on social media, you know where to invest your ad budget. Whether on Instagram/Facebook, which age group is interested in your product and which location exactly. You can now focus on that particular group and run your advertisement to get maximum leads.
- Knowing the physical spaces where your target audience spends most of their time will tell you where you place flyers/hoardings and posters. Yes, offline marketing also works, but only when advertised at the right place.

5. Outsell Competitors
The market research also reflects the light on your competitors, their weaknesses, and strengths. Many times, there are several gaps between the customers and the competitor, which you can make use of and bridge in a way that profits you and your customer too.

6. Set Better Goals for Your Business
Knowing as much as you can for your competition will be pivotal to the success of your business. Market research throws light on every vital element that could help you succeed and stand out in the crowd.

7. Decision-Making Becomes Simple
When you know every bit of the market in which you’re about to invest, don’t you think it will be easier for you to invest? Answer it yourself.

8. A Better understanding of your customers’ needs
Mapping out the full profile of your target audience can be a hectic task. Knowledge of your customers will help you determine the market size and what triggers them to buy. By getting the details like their age, location, gender, and income, you will of course know your customer better and can create effectively tailored marketing and pricing campaigns.

9. Knowing and managing change
“It is not the strongest or the most intelligent who will survive, but those who can best manage change.” — Charles Darwin.
No doubt, his words are still echoing today. This clearly says, just to remain ahead in any business, you should not only anticipate change, but you need to be able to predict change, grasp it and manage it properly. And you know, nothing can help you know the changes in the market better than a Market research firm.

10. Business growth
Last, but never the least, market research helps you growing your business. From comprehending the demands of your customers, detecting more opportunities, planning tailored market campaigns, minimizing losses, identifying problems, and much more, market research should truly be a bae for any start-up/ business.

To conclude, market research provides you with all the minute yet vital information that will help you identify and analyze the market needs, your customers, and your competitors.

Wish to get your market research done? Contact Stratview Research