Small Businesses: Why Do Market Research
Attainment of success in a business is directly related to your knowledge about consumers, competitors and the industry as a whole.
Market research as a business strategy is essential for all types of business but for small businesses, it holds even greater relevance in today’s tougher conditions, as they have to face competition at a larger level from local businesses, other small competitors, large competitors and even Ecommerce competitors.
Market research as a crucial business activity enables small businesses in gaining insight about the real customer base, in keeping abreast with the market trends and in attaining a competitive edge over other businesses.
Apart from the above insights, market research also enables all businesses whether big or small in
- In reducing the risk of business
- In locating the current and likely future problems in the industry
- In tracking available sales opportunities
Benefits of Conducting Market Research for Small Businesses
Irrespective of whether a business is just a start up, an ongoing business or one likely for expansion, market research if undertaken right from the beginning can benefit a small business largely.
- Identifying the potential customer base
For new start-ups, market research helps to gain knowledge about who the customers are likely to be and whether the market demand for the products is enough to support the business idea.
- Gaining Requisite Knowledge About Existing Consumers
Thorough knowledge about the existing customer base such as what motivates them in choosing your product over the competitor’s product or factors influencing their purchasing decisions are some of the feedbacks which marketing research provides a small business to pay more attention including consumer tastes and changing demographics.
- Setting Achievable Targets
Based on the information obtained through the conduct of market research, a small business can set targets for different spheres of operation such as purchase, production, sales, and growth or even with respect to the launch of a new product or service in the market.
- Informed Marketing Decisions Using Effective Strategies
By undertaking effective strategic marketing research a small business can make informed marketing decisions pertaining to price of the product or service, effective distribution of the product or service ,use of the appropriate media channel such as television, radio or other mode of marketing such as direct selling. In short, informed marketing strategies of research if adopted enables small businesses in making informed decisions with respect to expanding or curtailing business activity.
- Effective Solving of Business Problems
Marketing research if adopted as a regular business strategy not only helps to identify a business problem but also in working out a solution for the same. Say for instance, a fall in sales might reflect an immediate fall in brand awareness or entry of a competitor in the market or introduction of a similar new product in the market.
- Assists In Identifying Areas Of Expansion
With the help of market research, a company can identify the potential areas available for expansion along with the market’s readiness in a accepting a new product or service. All this will help small businesses in gaining insight about its respective effect on consumer base.
- Location of New Business Opportunities
Through effective market research, a company can sometimes locate new business opportunities that could be an un-serviced or under serviced market. Similarly, changing trends of fashion shift in population, newer educational opportunities, or increased leisure activities are the key areas that can be identified and converted in to new business opportunities.
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