There are many benefits of market research that starts from understanding your own business, known about target audience, understanding taste and preferences, getting insights of external factors, competition positioning and many others. The objective is to identify and assess how changing elements of these aspects impact a business on various fronts. Market research, if done right, can give a business competitive advantage.
In the last two decades there has been a strong shift in market research industry as previously there were handful of publishers in the market while today there is cut-throat competition. Therefore, research methodology has been refined with the adoption of technology that helps to assess market at lowest possible time with accuracy.
It is imperative to understand the benefits of market research in today’s world to stay ahead and improvise the business model as per the rapidly advancing market. In this article Market Research and Consulting company, has identified certain major benefits of market research as follows:
1. To Gain Industry Insights
Examining the dynamics of an industry as a whole is a crucial task for effective planning and management of an organization. However, the task can often prove to be challenging and arduous due to the large amount for data and information available today. Market research facilitates existing businesses or new entrants in framing an overall picture of a particular industry by providing factual information that may be of most relevance for the activities of the business. This helps the business in estimating the share it occupies in the industry, the size of the industry and past as well as future developments in the market.
2. To Make Informed Business Decisions
Decision-making is pervasive at all levels in an organization, as launching or running a business demands quick and effective decisions to be made about the products, services, expansions, customer management, and so on. With market research, businesses and individuals are better informed and updated about the various factors that influence these decisions and determine the future course of action.
3. To Identify Potential Challenges And Opportunities In The Market
Opportunities and challenges focus on external factors that can have substantial impact on an organization. A major benefit of market research is that it provides complete information about the market. It helps identify the market opportunities available to the business, such as technological and economic advancements, along with short and long-term costs and benefits of exploiting these opportunities. Besides, market research also gives details about the competitive nature of the market and the various challenges that a business might face, such as supply chain problems or government regulations.
4. To Discover the Strengths And Weaknesses Of The Business
Strengths and weaknesses refer to internal factors that affect an organization. Market research helps identify the strengths of a business, such as its technical expertise or resource availability. These factors distinguish the business from its competitors, and keep it ahead in the market. Market research also helps in the identification of weaknesses of the business, which further facilitates designing measures for rectification and improvement in these areas.
5. To Identify Emerging Trends in The Industry
With rapid economic growth across the world, technology is evolving and consumer choices are expanding at a significant rate. In order to stay relevant, maintain their market position, and optimize connection with customers, businesses need to keep abreast of the emerging trends in the industry. Market research provides curated set of information about such trends which are relevant for the business.
6. To Assess Market Competition and Players’Positioning
It is vital for a business to evaluate the market share, strengths, weaknesses and strategies of various market players and competitors. Sound market research provides a detailed approach towards this requirement, which helps businesses to identify and take advantage of the competitors’ weaknesses, while being able to predict their next move and staying ahead.
7. To Improve Risk-Management Strategies of The Business
Taking risks is a part of any business, but to minimize its negative outcomes, it is important for businesses to formulate risk-management strategies. Market research can be an important element of such strategies by providing data or survey-based insights about consumption patterns, target market and product pricing, which can provide a better understanding of the market and drastically minimize business risks.
8. To Assess Potential Buyers in The Future
A detailed market research report can provide data-driven insights on trends in consumer preferences and demand. This can help identify target audience and potential buyers of products/services offered by the business. Customers’ issues and feedback can also be assessed, and products can be designed with the goal of resolving these issues.
9. To Act Proactively in The Market and Gain First Mover Advantage In Product/Service Development
Understanding the information collected during market research helps a business in assessing all the major factors that tend to impact the overall success of a business. This information can further be used to expand the business at the right time, focus on key areas, and innovate in the right direction. Keeping abreast with latest trends and opportunities also helps in gaining first mover advantage and staying ahead of the competitors.
10. To Stay Updated with Government Norms and Take Measurable Actions
Government norms are often more dynamic in developing nations, with increasing need to boost exports, foreign capital inflows, employment opportunities and economic growth, while safeguarding domestic industries and national interests. Businesses can have a negative or positive impact, depending on the nature of these norms and the business itself. Thus, it is vital to stay updated and be prepared for state-led developments, with measures to mitigate risk or exploit opportunities. Market research provides facts and knowledge of such norms, along with potential direction to prevent damage to businesses.
The Importance of market research lies in its objective that channelize business in the right direction. In this blog we have identified certain market research benefits. Market research benefits can be studied with the right approach. Therefore, it is important to study methods to conduct market research after identifying advantages of market research.