Understanding Market Researching

25 April 2017   |   Startup, Blogs
Nevertheless, market research is absolutely essential. Especially for startups. There’s no way around it.

Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service. This type of research can be conducted in house, by the company itself, or by a third-party company that specializes in market research. It can be done through surveys, product testing, and focus groups. Test subjects are usually compensated with product samples and/or paid a small stipend for their time.

The purpose of market research is to look at the market associated with a particular good or service to ascertain how the audience will receive it. This can include information gathering for the purpose of market segmentation and product differentiation, which can be used to tailor advertising efforts or determine which features are seen as a priority to the consumer.

Benefits of Market Research.

It helps in validating your idea.

Use market research for product development.

Employ market research to launch your startup.

Plan sustenance through market reaseach.

For startup businesses though, doing proper market research is even more critical but unfortunately, a lot of startups are programmed for failure because they do not conduct sufficient industry research before launching themselves into the competitive market. I think with the invent of e-commerce, small businesses sometimes make the mistake of doing partial research that is skewed towards a certain demographic active on the online community for such products.

Find the strongest competitors in your market.

Market research is a critical tool in helping companies understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.A business must engage in a variety of tasks to complete the market research process. It needs to gather information based on the market sector being examined. The business needs to analyze and interpret the resulting data to determine the presence of any patterns or relevant data points that it can use in the decision-making process.

Market research should never be overlooked by any business, big or small. When starting up a business, one of the most important things you can do to start off on the right foot is conduct thorough and effective market research. The majority of businesses enjoy long-lasting success through conducting regular market research to understand their target market. Read on to discover why market research is so important for start up businesses.

Market research helps businesses understand their marketplace from the very start, enabling them to create strategies that will allow the business to grow and outshine competitors. The main forms of market research are primary and secondary – the combination of the two creates extremely reliable results that can be used time and time again.

Primary market research can be carried out organically by the business. The aim is to collect unique data that can be used to improve all aspects of the business.On the other hand, secondary market research relies on information that is already available from a variety of sources. It is important to ensure that secondary research is collected from trustworthy sources, otherwise there will be a lot of reliability issues.

Why Market Research Is Important for Startup Businesses.

Market Research is one of the most used marketing jargons among start-ups and, sadly, the least used phenomenon. Start-ups use this phrase loosely right from the idea stage and continue to do so forever but very few companies have understood its importance and tapped into its true potential to direct their growth northwards.

It is a technique of research analysis carried out in the form of surveys, interviews, questionnaires and focus groups to understand the market, target audience, the need for the business idea/product in the market and its sustenance. But it is often misunderstood as the endless contemplations and discussions between entrepreneurs and their friends/peers before starting a new venture.