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Top-Shelf Tip No. 30:

"Research is creating new knowledge."

Neil Armstrong

Six Reasons Your Business Needs Market Research

Market research serves a very important role in marketing. It allows you to delve into the behavior and perceptions of your customers and prospects to understand purchasing behaviors and the forces that impact that behavior. That is why Fortune 500 companies like IBM and Microsoft spend millions every year on market research.

In this issue of Promotional Consultant Today, we'll share six important outcomes you can expect when you invest your time, money and talents into market research from global market research and consulting firm, Infoholic Research.

1. Clarity on what you are going to do: Market research is the foundation for most major business decisions, whether developing and launching a new product, sourcing a new supplier or reaching a new customer segment.

2. Better insight into the target customer: Target customers can be either current or potential customers. Market research can clear up doubts on potential customer identifiers such as age, gender, location etc. Further, deep analysis on loyal customers will provide insight on what your business needs to do to retain them.

3. Understanding of customer behavior patterns: Market research can offer substantial depth on requirements, pain points and behavioral patterns of customers. Once these patterns are traced, more in-depth customer segmentation and targeting can be conducted.

5. Detailed segmentation-targeting-positioning (STP): Once the above goals are met, proper and thorough segmentation, targeting and positioning can be rolled in. A robust market research study on segmentation-based business needs can do wonders in advancing your business plan. The next step reduces the targeting overhead and narrows down the optimal customer base. Finally, positioning a product in the minds of the customer becomes more effective when based on these market insights.

4. Competitive analysis: Research on potential competitors can unlock strategies that can help you either squeeze the growth of your competitors or run ahead of them. Most importantly, it will always enable your business to revamp and keep improving the quality of your products and services.

6. Foster better alignment and decision-making: With knowledge and refined information at your disposal, decisions can made based on facts and insights, rather than assumption and emotion. Market research serves as a source of actionable data and allows for easier alignment of priorities by leadership. Further, it can propel faster conclusions with more accurately forecasted results.

From quantitative research, such as surveys, to in-depth qualitative research such as stakeholder interviews and focus groups, market research is the first step to a solid and effective business plan and go-to-market strategies.

Source: Infoholic Research is a global market research and consulting organization that provides strategic and high-level market intelligence in emerging and niche technologies.