Marketing research is relevant when starting a new business or launching a new product. Infact the importance of Market research to business growth cannot be overemphasized.
It enables you to gather information about your target market.
There’s a school of thought that believes that understanding consumers’ needs and preferences may help guide the design of a product and save a company from losses.
Although there are other schools of thought like Apple Inc that believe that customers do not know what they want until it is shown to them.
No school of thought is absolute in itself. Each approach to market research has its advantage to business growth.
Starting a business? see 14 steps on how to start and grow a profitable business in Nigeria.
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Types of Marketing Research
Apple Inc may not believe in traditional market research, but hardly any product gets sent to the market without going through Alpha and Beta testing.
Don’t take my word for it. I reaped it off this tweet.
Marketing research is a coordinated effort aimed and collecting data that would be applied to better the product.
Steve Jobs believed in making a product that he was excited about using. In other words, he was his primary market, which brings me to my point on the types of marketing research.
Primary Market Research
First, we have the primary research that uses direct surveys to determine if there is a demand for your product and ascertain the ideal price range of the product.
Other primary research techniques include the use of focus groups, interviews and general observation.
Secondary Research
On the other hand, secondary research refers to secondary data from old surveys.
Instead of conducting a new survey, you could use previously collected data on public platforms and survey sites.
Importance of Market Research To Business Growth
Whether you chose to apply primary or secondary market research techniques, here are some ways it could benefit your business.
Creative Insight
The outturn of the market research may inspire new possibilities for your product. Rather than create a product with a limited market, you may find new sales possibilities in serving a diverse group.
Saves cost
When you undertake market research before product launch, it saves cost by preventing careless risk. Companies have had to abandon an entire production line and risk employment because a product failed.
Saves time
Rather than stay hung on a product that will flop, research prevents you from such colossal waste of time that could have been put to better use.
Insight into product
Secondary research allows you to see why similar products failed or succeeded in the past. You may learn something valuable from the mistakes of others.
Insight into competition
Through market research, you can learn why consumers favour the competition. You can also learn the gaps in the competitor’s product and use it as an edge when creating your product.
Finally, When opting for secondary market research, ensure the source of the data is credible. Also, if you wish to conduct primary market research, but lack the funding, try using influencer marketing to collect polls.
Be careful when putting out information about a new product. Get a design patent.
Click here to understand why products fail and how you can avoid such pitfalls.
Conclusion
Conducting a strong market research would help you understand your strengths and weaknesses and thus the position of your business in the market and the potential market share that it can have and how best to pursue and strengthen your position.
Use market research to gain a better perspective and insight to your market or target audience and ensure that your business stays ahead of her competition.
