Market Research & Not that Leap of Faith Will Help Your Business Succeed
Market research in last few years has gained immense momentum, becoming crucial not only for startups; but also for established businesses to make profitable growth. With more and more brand competing in the market for shelf space and market share, the competition in the market is getting fiercer and to succeed, companies need insights about the market they are trying to capture, and it is the “market research” that walks in as a savior for them. The collection and analysis of information encompassing consumers, competitors, and the effectiveness of marketing efforts is how market research is put at task.
Companies are leaving no stone unturned to stand out from the crowd, and have realized that the best way to succeed is to provide their customers, millennials or boomers, with customized shopping experience. This may require companies to put in those extra efforts. They also are aware that customized or personalized goods, is what can demand higher prices. Simultaneously, they also know that “mix and match’ offerings have proved their worth in encouraging customers to try new products, services and at times, even newer brands.
Here are some of the ways in which market research has helped businesses and companies. Try and figure out if your company is leveraging it appropriately, or not.
1. Have you identified who all are the buyers to your products/services?
This happens to be the most crucial and important step. You are taking that leap of faith, by ditching your day job and becoming a business owner; if you are not equipped with granular details about your target market.
Creating a picture of your ideal customer with help of data collected about age, gender, education level, income, and location, is what your market research does for you. Figuring out market opportunities for your products or services can be identified by knowing who you are selling it to. Next comes in is market analysis. It is basically conducted to assess how big is the market, how saturated it is and what are the chances for your product or service to survive as an addition to the already existing mix. Consulting a market research firm is a decision no company has ever regretted.
They go all the way to create a test segment of target market and conduct a focus group or a survey to reach out to who they really are. They turn their findings to insights and present it in form of data visuals which make it really convenient for any company to decide whether it makes real sense to launch their business in a specific segment of the market, before committing completely to that idea.
2. What is it that makes your product/service stand out of crowd?
Initial research or basic know how of the market gives companies that shallow idea of which are the competitors offering similar products/services to your target market. This nowhere implies that because there is completion, your company or the idea will not succeed. But this certainly is an indication that you should be up and running with the homework as to what makes your product/service stand out of crowd. Market research helps you create that unique selling proposition – USP, which is a turnkey solution for your company and idea to sail through.
Market research experts’ chart out the USP which portrays what is it that makes your business or business idea different from others, and hence; why should your target clients choose you from the crowd. USPs has proved their worth as effective business tools that define the brand and make the business not only survive, but thrive in concurrent market dynamics.
3. What is it that will make you stand apart from competitors?
As crucial it is to find out who your ideal customers are, is to research the competition as well. Every company needs to know who all are waiting to pitch in to your ideal customer. Getting in depth knowledge of who your competition is, works to your advantage even before you move ahead with your business idea. Market research firms can furnish you details about your competitors as they are equipped with the kind of expertise required to conduct competitive analysis and a SWOT analysis of course.
4. How will you do financial feasibility analysis for profitability?
Very important, actually more than important than anything else for a business idea to succeed, is money.
- What would be the initial investment required to be made?
- Where could that capital come from?
- Who all are the investors in that arena?
- What all expenses your business is likely to incur?
- What is your earning potential once you're up and running?
Data research and analytics firms are experts at conducting financial analysis, to help you get started. They even can guide you with all potential capital sources available and, limiting the investments required up front by highlighting the dos and don’ts derived from competition analytics.
This is certainly a lot of research. There are a very few, who took up the DIY approach and still succeeded. Conducting market research followed with analytics to deliver market trend data analytics, company/customer profiling and analytics, market opportunity assessment & analytics, new product & services study & analytics etc. needs experience and expertise.
Instead take assistance of market opportunity assessment solution providers to identify the best fit market for the idea – products – services; you are planning to venture in. They provide descriptive assessments, with objective evaluation, about the potential of new products, new business ideas or new investments. Success doesn't happen overnight and not every small business is positioned for success. Only a market research firm can set the foundation for success.