Every product that we use today has been launched after extensive and successful research about its customers and competition. However, getting information is not a hard task. There’s a market for absolutely anything, if you conduct proper market research. Consumer perception decides where your product is viable.
Brand and businesses need to zero in on their potential clients, their main rivals and their market presence. Market Research narrows down your search, making everything more accessible and understandable to take your business to the next step.
Even though market research has become crucial to businesses, the process can appear overwhelming in the eyes of entrepreneurs.
As a means of clarification, I have outlined 5 things that market research can do for your businesses in the process of product development & product growth:
1. Better communication with your customers
Who is the end customer? Who is willing to shell out a significant portion of their wallet to buy your product or service? What do they expect from your brand? At what frequency will they purchase the product?
Market research can put a definitive answer to each one of the above questions.
When venturing into a new market, having crucial data which can help make business decisions is pivotal. Wrong perception can make you seem like a fish out of water. Market research can side track this problem and validate your concerns of understanding your customers by giving you valuable data points you can use.
2. Understanding your competition
Competition is existent in every industry. Narrowing your main competition, those who work at your price points and who your customers will run to if your services falter are the ones to understand and evaluate (read: evacuate).
With effective market research, you can predict the reaction of your competition when you decide to enter the market and how the customer will perceive your product in relation to your competitor.
Market Research will do the job of finding weaknesses in your competition that you can leverage and utilize to gain more customers.
Furthermore, you can understand what worked for them and what went against them and can then model your product accordingly.
3. Find bugs which you can fix before launching your product
So your product is at its final stage, and all you have to do is start marketing and sales right?
Wrong! You can still improve your product/service function and appearance based on customers user experience and testing.
No one can be 100% sure that their product will fare exceptionally in the market.
Connecting with your consumers at an emotional level is essential for a successful launch. Market Research, as you guessed it, can and will give you data points you will want to improve on for a successful launch.
4. Sustain in your business
“It is not the strongest or the most intelligent who will survive but those who can best manage change.”
— Charles Darwin
We’re not exactly sure if Darwin did some market research in his free time, but his words are so important and still echoing today in possibly the most innovative era in the history of mankind.
Giant brands go out of business due to rigidity in maintaining their original image. Does the name Nokia ring a bell? Not willing to adapt is the surest way to be run out of your business. At this day and age, innovation and change are the only constants.
Market Research can predict and anticipate change to help you stay relevant in your business.
5. Grow your business to new heights
Building stable revenue takes time. Facing huge competition and smaller sales is a nightmare every entrepreneur faces.
Market research is the basis that has to be included in your growth strategy, so you can capitalize on the market opportunities that you’ll discover. It will help you develop a new product and a better pricing plan. You’ll discover new market segments and new distribution channels.
Identifying problems before they happen is crucial if you want to grow.
The effective market research will help you predict some of the pitfalls that can occur during the growth process and save you a lot of money in the process.
In conclusion, Market Research can act as a secret weapon if you want to understand your consumers, competition and even your own product in lieu with the market. Having the right information can change the entire game for your business which will directly translate to more revenue.
Verace is a market research agency headquartered in Bangalore. It was established in 2007 with a clear idea to deliver superior consumer insights which will be effectively used to garner extra market share and also improve the market position.