The Importance of Market Research for Startups
Market research is a vital component of any business plan, but unfortunately many startups either, ignore it or treat it as a one off ancillary function. Marketing research provides the necessary data and insight that allows a brand or business to understand what motivates their target audience. It also reveals market trends that will impact the manner in which the market responds to certain stimuli. Businesses that make market research a central focus in the development of their business strategy and marketing campaigns will discover that they have a decisive advantage in the area of competitiveness.
The global economy has proven to be fertile soil for the launch of small businesses; however, the increase in the number of small businesses in multiple industries and niches has served to intensify an already highly competitive market. Regardless of whether a person is expanding an existing business or starting a new one, market research is essential to gaining a lucid perspicacity of the target audience and what drives them. For any business, the primary objective is to gain a sizeable share of the market, and then hold on to that share while working to seize more. Identifying Potential Customers When it comes to startups, market research is how businesses will be able to identify their potential customers. Depending on the products or services offered by a specific business, there will be a specific group that will be identified by any of a number of demographic factors, such as age, sex, profession, etc. Market research will provide a higher level of lucidity as far as the type of people who will be interested in what the business is selling. When a business understands who they are marketing to, they will be able to tailor their marketing and branding strategies to engage their audience with a high level of specificity, based on interests, needs and desires. Factors that include a customer’s level of education, geographical location, whether they are a homeowner or renter, and more will determine if and how a business will market to a specific group. Understanding Existing Customers One of the most important elements that contribute to the longevity of businesses is the ability to develop lasting relationships with their customers that build trust and customer loyalty. When a business is able to understand their customer, they will have a better apprehension of what motivates them as a consumer. With existing customers, it is not sufficient to know that they consistently buy a particular product that a specific business sells. The business should perform the due diligence that informs them of why the customers choose their product. While many purchases are need-driven, there are multitudinous additional factors that drive consumption. Desire and emotion are very strong …show more content…
From the information that is collected during the process of conducting market research, information will be categorized in order to serve as the foundation on which sales, growth and product service goals will be based. There is a huge difference between postulation, speculation and calculated projections. Market research offers a foundation on which accurate projections can be made on a number of different levels.
Developing Effective Strategies
Once a business has conducted the necessary market research, they will be able to develop efficacious strategies that are based on informed marketing criteria. Everything from pricing to release dates are determined by collecting and analyzing data through the process of market research. The collected data will also be very instrumental in determining which media channels should receive the predominant portion of the advertising budget.
When companies are looking to develop a new service or product, the first thing that they will do is conduct market research to determine how the market will respond to the product. Many times, this will be done by conducting surveys or evaluating existing pertinent research. Because business markets are not stagnant, and competitors are always looking for ways to develop and sustain a competitive edge, market research has to be an ongoing dynamic …show more content…
There is so much that can be gained by gathering customer intelligence, which will provide a wealth of information that reveals what drives the customer and what their interests are. For the company that can connect their product to their customer’s interests, developing a trusting relationship that will lead to a long-term business life cycle will prove much
Market research is a vital component of any business plan, but unfortunately many startups either, ignore it or treat it as a one off ancillary function. Marketing research provides the necessary data and insight that allows a brand or business to understand what motivates their target audience. It also reveals market trends that will impact the manner in which the market responds to certain stimuli. Businesses that make market research a central focus in the development of their business strategy and marketing campaigns will discover that they have a decisive advantage in the area of competitiveness.
The global economy has proven to be fertile soil for the launch of small businesses; however, the increase in the number of small businesses in multiple industries and niches has served to intensify an already highly competitive market. Regardless of whether a person is expanding an existing business or starting a new one, market research is essential to gaining a lucid perspicacity of the target audience and what drives them. For any business, the primary objective is to gain a sizeable share of the market, and then hold on to that share while working to seize more. Identifying Potential Customers When it comes to startups, market research is how businesses will be able to identify their potential customers. Depending on the products or services offered by a specific business, there will be a specific group that will be identified by any of a number of demographic factors, such as age, sex, profession, etc. Market research will provide a higher level of lucidity as far as the type of people who will be interested in what the business is selling. When a business understands who they are marketing to, they will be able to tailor their marketing and branding strategies to engage their audience with a high level of specificity, based on interests, needs and desires. Factors that include a customer’s level of education, geographical location, whether they are a homeowner or renter, and more will determine if and how a business will market to a specific group. Understanding Existing Customers One of the most important elements that contribute to the longevity of businesses is the ability to develop lasting relationships with their customers that build trust and customer loyalty. When a business is able to understand their customer, they will have a better apprehension of what motivates them as a consumer. With existing customers, it is not sufficient to know that they consistently buy a particular product that a specific business sells. The business should perform the due diligence that informs them of why the customers choose their product. While many purchases are need-driven, there are multitudinous additional factors that drive consumption. Desire and emotion are very strong …show more content…
From the information that is collected during the process of conducting market research, information will be categorized in order to serve as the foundation on which sales, growth and product service goals will be based. There is a huge difference between postulation, speculation and calculated projections. Market research offers a foundation on which accurate projections can be made on a number of different levels.
Developing Effective Strategies
Once a business has conducted the necessary market research, they will be able to develop efficacious strategies that are based on informed marketing criteria. Everything from pricing to release dates are determined by collecting and analyzing data through the process of market research. The collected data will also be very instrumental in determining which media channels should receive the predominant portion of the advertising budget.
When companies are looking to develop a new service or product, the first thing that they will do is conduct market research to determine how the market will respond to the product. Many times, this will be done by conducting surveys or evaluating existing pertinent research. Because business markets are not stagnant, and competitors are always looking for ways to develop and sustain a competitive edge, market research has to be an ongoing dynamic …show more content…
There is so much that can be gained by gathering customer intelligence, which will provide a wealth of information that reveals what drives the customer and what their interests are. For the company that can connect their product to their customer’s interests, developing a trusting relationship that will lead to a long-term business life cycle will prove much