Why It Is Important To Conduct Market ResearchOctober 31, 2017
Your business needs to do several key things in order to compete properly with other, similar companies. Your company should have a niche, something which no other company can offer.
In busy everyday work life, it can be difficult to decipher what your business has going for it that others do not. It is also difficult to understand how the marketplace is looking. Is it overcrowded? Is it sparse?
The only thing that will help you to figure out exactly where your business stands is to conduct thorough and high quality market research. Market research can help a company in many ways:
1. It can tell you what your competitors are doing. It is very important to understand what your competitors are doing differently to what you are doing. This helps you to remain abreast of industry changes and find your niche. What are you offering differently to your nearest competitor? A cheaper deal? A premier service? A quicker delivery?
2. It can tell you where your customers are coming from. With proper market research you can see where your main lot of customers are coming from. This can help you utilise this market to gain as much profit from these customers as possible. Are most of your buyers online? Should you develop the website further to cater for this?
3. It can tell you what your customers want. Customers’ spending habits are always changing. You need to keep ahead of the game and figure out what your customers want, adapting accordingly. Regular market research can help you offer the products and services that your clients want.
4. It can help you anticipate the future. As mentioned above, what your customers want always changes. You can also anticipate other trends in the marketplace too. You can plan ahead successfully, especially in terms of finances. Does your market research tell you that customers would prefer a second store location on the high street? How much will this cost you? Do you need to apply for short term business loans in anticipation of this?
The benefits of market research are highlighted above. You can conduct market research in house or you can hire a professional consultancy to do the work on your behalf. This is sometimes more ideal as it means that you can receive an unbiased approach.
The tendency is to “big up” your own business when doing market research because of how closely linked you are with it. A professional company can tell you where to improve, (e.g. you are not offering anything new or different) so that you can change and adapt to growing demands and habits.