30 Oct Why do market research before starting a business?
Why do market research before starting a business?
Starting a business whether big or small requires carrying out certain processes that might decide the fate of the business i.e. the success or failure of the business. In the enthusiasm to start a business what most entrepreneurs forget is practicality of the business. Only if an idea is practical, it is likely to work out. God forbid, if the idea is not great, then the chances of a business facing heavy loss or failure would be very high. To avoid all the hassles and make sure running of a business is smooth, undertaking market research services is a must.
Market research services help a business to understand the primary motive of the consumers in choosing its products. Over and above this, it also helps to analyze and give a fair idea to the business about those factors that exert an influence on the buying decisions of the consumers such personal, cultural and societal.
The broader classification of market research services is possible in two ways Primary and Secondary. Primary market research study engages in studies about the consumers directly, while the secondary study involves studying of only such information about consumers that have been already collected by others.
Primary market research services comprise of telephonic interviews or online polling of members who have selected randomly from the target audience. The primary research comprises of research carried out on the basis of the information available in the existing sales record. While for the secondary market research, gathering data from the websites or competitors or by studying the blogs related to the industry.
Companies engaging in market research service can make use of one of the two research methods either primary or secondary or both. The common question that needs answering during the process of conduct of the market research service involves the following:
- Who do you think would be your consumers and all the details of their age, income, occupation, educational qualification including the lifestyle they follow?
- What do they prefer buying? Details about their buying preference for your service or product and the measure they prefer to buy. Whom do they prefer buying from?
- Reason why a consumer chooses a specific product over others? This no doubt is a tricky question but it helps to understand the consumer psyche.
- What steps you can adopt to make the consumers buy from you. Though no doubt a difficult question, answers provided to this question will help a firm to plan its activities better and strive hard to meet success.
On the face of it, market research services might seem easy for companies as most of the information is available online but in reality, it requires a lot of ability, skilled work-force and improved technology for developing a solid foundation of research. Companies big or small must make use of market research services in order to succeed in their business objectives, either by conducting in-house or by taking help of a specialized market research services provider such as iResearch Services.
Check out this article on Market Research: The Answer to the Dynamic Challenges of the Modern Business.