Importance of market research to entrepreneur

Why is Market Research Important to Business Growth?

What is Marketing Research?

Marketing research is a collection of data about your target consumers, market competition, and demographics to present and market your product and service more effectively and to increase sales.

Marketing research also known as market research is particularly important to entrepreneurs to market their businesses effectively, especially when you plan to launch a new product or service.

Marketing research is a key strategy for business owners and entrepreneurs who have the budget to gather market data to improve service and grow business.

Why do you conduct Market Research?

Market research is important before deciding on whether you want to employ traditional marketing or internet marketing.

The following are the main purposes of conducting marketing research.

  • To make improved business decisions
  • To improve customers’ satisfaction
  • To adapt to changes and other market forces
  • To improve product taste and quality
  • To find out new business opportunities
  • To secure funds from investors

Importance of market research to entrepreneur

Types of Market Research

Market research is essential when launching any product. Market research is important as it allows you to identify the customer’s needs.

There are 5 methods or market research methodologies that are commonly used in conducting marketing research: Interviews, surveys, and polls, observation, focus groups, public data, and field trials.

All these data sources can be grouped into 2 types of market research, each based on different criteria.

Primary Market Research

This is the best method of Market research because you can visit the local market and analyze your own experience doing research.

You can see what customers want, analyze the methods of well-known brands and compare them to your products.

There are 2 models in primary market research: quantitative and qualitative.  

The quantitative model deals with numerical data, making use of surveys, questionnaires or polls as instruments to gather data.

Qualitative models deal with non-numerical data collection via text, and video to gain insights into the customers’ behavior.

Secondary Market Research

Secondary research is important as well. This involves collecting data from secondary sources which are not planned in the course of the research. For example, social media activity, reviews on the internet, etc.

With the advancement in technology, there are market research software tools to help you, irrespective of your business model, B2B or B2C, or others.

This is important because you know that others can do the same thing as you do, and it can help to perfect your product.

There are 2 types of secondary market research: gathering data from the company (internal) and gathering data from external sources like competitors, market reports, magazines, journals, etc.

Importance of Market Research

Market research can be conducted in any sector, from transportation, packaging, hospitality, education, entertainment, etc.

Market research is not only for profit maximization or to improve the quality of products, research can also be conducted to educate and improve society.

Marketing research can also be done to collect data and market the data to other companies that need such data to improve their businesses.

However, the most important function of market research is to improve product quality, win customers and retain them.

Once you understand your potential customer behavior, you can be able to make your products suit them to build loyalty and brand advocates.

Brand image

Conducting market research and reporting it can bring awareness to your brand.
Even when you keep the data, the result can help you to improve your brand.
You can overcome any difficult situations and move on to success.

Service Assessment

Business owners can assess their products or services with marketing research.
This helps to quickly identify any issues and make it easy to correct them.

To ensure that you have a happy experience, make sure your assessment is accurate.

Customer satisfaction

It helps to understand the level of satisfaction of the customers.

It is important to find out how satisfied your customers are with your products/services.