How can market research be used for your business?
While market research is often mentioned as a way to assist a business in its growth, the various ways it can be used to attain this goal are not always understood or even known.
Some ways market research can be used by a business are –
Entering a new market segment:
If a business is looking to enter a new market segment, for example by offering a new product line, market research can be utilized to more efficiently penetrate the market by better understanding the segment of interest, the market size, potential market demand, existing competitors, anticipated market share, etc. By gaining a better understanding of these key data points, strategies can be designed to optimize the launch of new product lines.
Targeting customer segments:
If a business is attempting to expand its customer base by appealing to new customer segments, market research can assist in gaining a better understanding of the customer segment in terms of aspects such as demographics, needs, wants, perceptions, etc. By gaining a better understanding of the customer segments, marketing strategies can be designed and efficiently target the desired customer base.
Market research can be crucial during the product development stage by allowing businesses to gain a better understanding of how the planned product is perceived, its positive and negative attributes, the customer’s expectations with regard to the new product, etc. This in conjunction with gaining a better understanding of the anticipated customer base can aid in designing strategies that allow a business to maximize capture of a share of the market.
Streamlining Existing Operations:
Market research can also assist in streamlining existing operations by allowing for an audit of current market expectations and needs, and the company’s service offering. Tools such as a brand awareness survey can assist in evaluating how a company’s brand is currently perceived; following which strategies including marketing campaigns can be designed and implemented with the aim of streamlining and optimizing operations.
Customer and Employee Retention:
Market research in the form of tools such as customer satisfaction and, employee satisfaction and engagement surveys can assist in gathering feedback from clients and employees. Feedback from clients and employees is crucial to identifying strengths and areas of improvement, which can eventually result in higher levels of loyalty and thus, retention.
Conducting market research and utilizing those findings to prepare a business plan and/or financial feasibility can greatly assist in securing funding and investment. Having a business plan and/or financial feasibility study that is supported by reliable research assists investors in having confidence in the planned business venture. Furthermore, if one is interested in gaining investment from a corporate entity such as a bank, a reliable and well-prepared business plan and/or feasibility study is typically a requirement.