It can be difficult for start-up businesses to get their foot in the door, especially with poor or very little market research. If a business doesn’t know what audience they are targeting or how will they strategize their approaches to create a brand for themselves resulting in higher returns, then how will they be able to survive. A wise move for start-up businesses to take is undergoing an extensive market research in order to establish all aspects of the market as well as competitors before entering the real market.
Market research basically refers to the gathering of customer information relating to the taste and preferences, either through the existing resources or by directly reaching out to them and gathering the information, through various means like questionnaires. Before launching their business, a startup needs to carry out the market research so as know the sustainability and capability of its product in the market. They need to check whether their offering will meet the market need, or is it capable of creating the need in the market. We have evidently established the requirement for Market Research, let’s analyze that why we actually require it.
Needs! They have to be identified
Identification of the market need is one of the most important keys to position your product or service in the market. This knowledge helps us to align our product or service to the audience’s lifestyle or target market. Studies have been helping us understand how a consumer/customer spends his /her time, money, perceive information and interact with their favorite brand. The critical aspect of this step is to carefully understand the demands and requirements of the potential audience.
Enable successful launches
Market niche can be easily identified with the help of market research which will enable a startup with its target market. Market research undergoes a lot of steps where information is discovered from the very scratch. It is extremely important and beneficial for all startups to thoroughly study the market including aspects of competitors, preferences, needs, availability etc. so that they can launch their product or service smoothly and successfully. To make you understand better, let’s consider an example where a start-up is trying to launch its consultancy services. As they have collected adequate information about the market, the start-up can customize its services unlike its competitors and provide better services and easily launch their services.
Challenge the Challenger
Market Research enables the identification of the best marketing strategy that can be used for our business. This helps us find the platform that engages our target audience and what vice versa. Going ahead with a marketing plan without prior analysis can be risky as we don’t have enough insights on consumer behavior and changing patterns. Discovering various marketing strategies through Market Research can help us save from getting outcompeted from the market.
Market research is ESSENTIAL for startups. If the business does not have the understanding of their customer’s needs, then they will not be aware whether they are addressing a real problem or if their solution is actually solving the problem in the desired way. If you don’t try to size your market opportunity and the potential growth, then you don’t know if you have a real business opportunity. If you don’t define your target customer and test what it takes to reach them, then you won’t understand your customer acquisition costs.
Whether it is a new product or the revamping of the existing ones, market research helps to answer the question relating to all. Market research enables effective and efficient growth of the product or the service offered by the business.
Sketching the Price
A market research helps you know, what is the need of the market? Helping you decide the number of goods and services that are to be produced in the business. This will help us in deciding the price and formulate the pricing strategy. Contributing to the most important objective of the business i.e. profits. There have been times where new companies took up the prices that were already prevailing in the market and could not create a powerful impact; researchers have shown that the costing can be modified if the companies pay more attention towards studying the market.
Test the Tasters
Market research always helps us in testing the growth of our product and identify the reason for success and as well as failures in the market helping us understand how much our potential customers like/dislike our product or service, what are the modifications required to facilitate more gain. The tasters here are the consumers or potential customers, market research help startups in coming up with ideas that could test and analyze the preferences, tastes, and needs of the desired audience and modify their services accordingly.
In conclusion, market research helps the business find new potential clients and facilitates it in retaining the existing ones.
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