A business aims to sell its product to their customers. Businesses need to undertake market research to know the needs and preferences of consumer, current and potential competitors for their products/services, and so on. Market research helps businesses use their resources as efficiently as possible. In this article, why market research is important for businesses.
Importance of market research
Marketing research is important and essential for the businesses from the following points of view.
- Provides data: Decisions makers are provided with valuable data with the help of market research. This data is about consumer behavior, demand and supply, competition etc. that is used for making decisions. This data proves to be very successful for the business.
- It studies the behavior of consumers: Market research also helps in providing data about the consumer behavior. Likes, dislikes, income, age etc is provided by market research. It also helps in finding out the customers view for the company’s product.
- Helps opt for right promotional strategy: Market research helps businesses in selecting promotional techniques that are suitable for them. Suitability in this context is in terms budget, type, geographical coverage, etc.
Further, it helps businesses in selecting right media for advertisement. It also helps making budget ready for the sales promotion techniques and advertising.
- Furnishes market information: Data regarding market situation is supplied with the help of market research. This data is likely to be useful in estimating:
1) Demand and supply situation of present and future.
2) Competition level.
3) Reason for the fall in the level of sales.
4) Opportunities for marketing.
- It checks out performance of marketing: Market research is useful for evaluating or checking the performance of marketing thereby improving them. This research is helpful in finding out effectiveness of package, price, brand name, etc. on sales. It discovers consumer reaction against the product. Pricing and inventory policies are evaluated using market research. It also finds out how advertising is effective and how well the sales promotional techniques are carried out.
Marketing department’s efficiency is improved with the help of market research thereby developing good reputation. It helps in selecting right staff for market research.
A market research is very useful for every business. Not only the company is benefited, market research is profitable for consumer, advertising agencies, distributors etc. Market research is answerable to questions like; how, what, where, when and whom to sell the company’s products and services.
process to collect important information in order to find out a market for your products or services. Thus information that is gathered from market research helps the entrepreneurs to make business decisions that can be profitable for the business.