Market research must never be underestimated. A number of successful new businesses enjoy improved longevity as their owners conduct regular market research. As per Kavan Choksi, this research allows entrepreneurs to understand their target market better, effectively identify consumer concerns and pinpoint realistic competitors. Market research is the simplest way for entrepreneurs to keep pace with market trends and maintain a competitive edge by sizing up their business opportunities.
Kavan Choksi marks some of the importance of market research for business
Market research implies gathering data to gain greater knowledge about the target demographics and consumers to market a business more effectively and attract more consumers. Market research is an immensely important part of a business strategy, no matter whether one is running a B2B or B2C venture. It provides valuable insights to the entrepreneurs on the basis of which they can make well-informed decisions and move their business forward.
There are many factors that make market research immensely important for a business, such as:
- Understanding the market landscape: Market research provides a robust understanding of the market landscape. It helps entrepreneurs to identify relevant regulatory factors, industry dynamics, competitive forces and market trends in a competitive manner. This knowledge helps businesses to smoothly adapt to changing market conditions, leverage emerging opportunities and stay ahead of the competitors. Businesses can seamlessly make strategic decisions that improve their market positioning and competitiveness by carefully monitoring the market.
- Maintain a customer-centric approach: Market research largely involves knowing the target audience better, which paves the way for developing a customer-centric business. These businesses keep customer experience and satisfaction at the forefront, which contributes to their long-term success. Proper market research is vital to know the desires and needs of the target audience in the first place and helps businesses to appeal more specifically to the pain points and preferences of their customers.
- Identify opportunities for growth: Market research is not just an important step for companies launching new products or startup ventures. Period market research can also help well-established businesses to explore brand-new opportunities to improve and grow.
- Assessing market potential: Market research allows businesses to properly assess the market potential for their products or services. In the opinion of Kavan Choksi, methods like market sizing and segmentation analysis can be used to estimate the total addressable market of a brand and identify target customer segments. With such insights, a business can properly allocate its resources, set realistic sales targets, and identify areas for potential expansion.
- Mitigating risks: With market research, a business can mitigate risks linked with brand-new market entries or product launches. They can assess the viability and acceptance of their offerings prior to making significant investments by conducting feasibility studies and concept testing. Market research goes a long way in helping businesses to become knowledgeable of market saturation, barriers to entry, and competitive threats. Equipped with this knowledge, entrepreneurs can make smart decisions that help in managing business risks and increase the likelihood of success.
Market research can be carried out at distinctive stages of a business cycle. A good understanding of the business marketplace from the start will help entrepreneurs to develop a well-rounded business strategy to establish and grow their brand into one that is better than the competition.