Market research: what can it do for your business? Successful companies both large and small know that knowledge is power, and market research can provide the edge that you need.
These are just a few of the factors you can uncover by recognising the importance of market research for your enterprise.
Whom you’re selling to
The foundation of a successful product or service is the demographics that it appeals to. Who are they, where do they live, who do they interact with; are they old, young, men, women; do they enjoy certain activities? When? Where? How? Who?
Whether you’re a startup or an established enterprise, there is never a period of time in your business life cycle in which your demographics are no longer important. Market research lets you answer the questions that you need to ask to ensure your product or service has a customer base.
You can also investigate psychographics, which measures attitudes and underlying needs and motivations. This provides a deeper level of insight than demographics, and can help you define your market even further.
Market research lets you answer the questions that you need to ask to ensure your product or service has a customer base.
More than that, it also lets you know if there is a segment of your audience that has been underdeveloped.
Take the now-infamous fidget spinners, for example. Originally, they were marketed and intended for an audience of people who suffered from anxious behaviour and needed something to occupy their hands. Now, they have quickly developed into one of the most popular toys for children.
Imagine if the developers of these fidget spinner never knew how popular their items had become amongst this unexpected demographic. They would have missed out on an enormous opportunity.
Related content: 3 common mistakes to avoid when creating buyer personas
What you’re selling
Identifying unexploited niches or needs within your existing audience (or a new audience you’d like to expand into) is a key strategy for any expanding business––and market research can highlight those opportunities for your company.
Moreover, if you have an idea for a new offering, market research can tell you definitively whether or not you have an audience for it, giving you the opportunity to adapt your strategy accordingly.
Market research can tell you definitively whether or not you have an audience for it.
However, perhaps most importantly, market research can identify trend shifts, allowing you to adjust in order to take advantage of it before your competitors have a chance to do the same.
Notice that people are shifting in preference to a particular good or service? Start developing more, similar offerings to take advantage of the overflow, adjust your advertising to promote the new trend, shift your strategy to accommodate––all enabled by the insights from market research.
Related content: Why 95 per cent of new product launches fail miserably
Where you’re selling it
How much are you spending on marketing and advertising this year? Chances are, it’s a significant portion of your budget––but without knowing where those efforts are most effective, they could be wasted dollars.
“People spend a lot of time and money on their advertising, trying to talk to their customers into investing in their product or service,” explains Oliver Allen, head of research at Perceptive.
“Traditionally, [companies] been good at the talking, but not at the listening side of things. That’s what research aims to achieve.”
"Traditionally, we’ve been good at the talking, but not at the listening side of things."
In order to get the best return-on-investment from your marketers, they need to know where your consumers are most likely to gather, share and invest in your products and services. Market research can tell you that; giving you insights into where your physical and digital advertising should be focused.
Perhaps your social media presence needs more resourcing, or there could be a billboard in a perfect position to appeal to your high-value customers. Without these insights, your marketing efforts could simply amount to dart-throwing.
Outside of advertising, market research can also tell you whether that new physical store is geographically viable. You can take the risk out of opening a new branch or store by investigating the industry saturation in your area and your potential customer base in the locality.
Related content: The marketing geniuses tips for best practice market segmentation
How you’re selling it
Finally, the importance of market research hinges on not just who, what and where you’re selling your products or services; it also informs you as to how you should be selling it.
With the right interactions, you can learn what style of brand voice works best with your customer base. You’ll learn their language, their concerns and how to fix them. Not only that, but you’ll also learn how people see your brand, as well as how you can improve it.
In a highly competitive business environment, where a company’s reputation is more important and more fragile than ever, that value cannot be overstated.
Related content: Understanding your audience
Summary
Every business can benefit from the insights developed from great market research. From knowing who you’re selling to, to what you’re selling, how and where, the right study can inform your strategy and give your business the direction to grow.
To find out more about market segmentation, check out our free ebook below.
