In a layperson’s language, market research can be defined as the organized process of gathering, analyzing, and interpreting information. In the definition, the term ‘information’ is variable; it can mean a business’s target market, consumers, competitors, or the industry as a whole. In today’s day and age of cutthroat entrepreneurial competition, market research is a foolproof way to stay ahead of the curve. It enables businesses of scales and types to gain a unique footing by understanding customer behavior and competitors’ strengths and weaknesses and gain invaluable industry-specific insights. Simply put, market research is the unrivaled cornerstone of business research.
The Underlying Premise of Market Research : A Brief Overview
Market research helps retailers make well-thought-out decisions regarding the course of the company, product launches, and more. A recent survey shows that the global market research industry is currently valued at USD 76.4 billion, thereby witnessing a two-fold increase since 2008. Such magnanimous numbers are a testament to the epiphanic realization among businesses everywhere that market research is indispensable to stay afloat in today’s severely competitive business domain.
Market research entails four approaches – primary, secondary, qualitative, and quantitative. The most vital approach is an amalgamation of all four. The underlying premises that make market research pertinent in 2023 are –
- It helps map the target market, create buyer personas, and devise an all-encompassing understanding of a business’s clientele.
- It enables enterprises to gauge current market conditions, evaluate risks, and anticipate product performance.
- Market research allows businesses to gauge the validity of a product, service, or concept prior to its launch.
- It helps identify gaps in the market overlooked or created by competitors.
- Market research can also be leveraged to solve problems left unresolved by a business’s existing products or offerings.
- Enterprises can devise creative, comprehensive, and customer-oriented marketing strategies via market research.
- Lastly, market research enables you to identify opportunities and find the scope for new product launches.
Importance of Market Research in Industries of Consumer Opinion
- Introspecting Strengths and Weaknesses – To begin with, market research helps businesses identify areas that need some conditioning and attention and perhaps those that they might need to bid adieu. Thus, market research enables enterprises to introspect, understand what needs improvement, devise a fresh business strategy, and let go of stale components.
- Understand Customers’ Needs – Market research enables a business to gauge its customers’ needs and curate a strategy for better customer satisfaction and retention. For example, you might be surprised to know that when YouTube was initially launched in 2005, it was for a very different reason – dating. However, the platform invested in robust market research and realized that video dating applications were not what their customer base was looking for, and the rest, as they say, is history.
- Informed Decision-making – A business should not be solely based on risks. Instead, informed and strategic decision-making is what helps enterprises stand out and stay afloat. Market research helps commercial ventures make knowledgeable choices vis-à-vis investment areas, new product launches, market expansion, customer opinions, preferences, etc.
- Sales Forecasting – One of the most daunting challenges of any business is maintaining an optimum inventory level. Thus, as production is undertaken in anticipation of demand, market research can help make the right decision. With a fact-based forecast of sales, market research allows enterprises to estimate the ideal inventory stocking/re-stocking. Thus, fixing sales quote and marketing plans become a cakewalk.
- Competitor Analysis – In the 2020s decade, being a business bigwig is impossible without keeping a watchful eye on the opponents. Market research helps re-adjust your lens and understand what your business competitors are up to. Such professional invigilation is imperative to anticipate your competitors’ next move and stay ahead of the curve.
- Expansion and Innovation – Last but not least, market research helps facilitate business expansion by recognizing geographical regions and markets where penetration is possible. In addition, sound market research also allows you to invest in ideas with the highest potential of success by understanding the lack and gaps within your niche or gauging customers’ wants.
Concluding Thoughts
So, there we have it, the top six ways market research helps industries of customer opinion. At Customer Opinion Market Research, we strive to support our partners and strengthen their decision-making process via customized business-ready solutions. We delve deep into quantitative and qualitative research, desk surveys, and more to help our clients stand out of the crowd.
