Market research is considered to be a critical component of any marketing campaign, whether it has to do with launching a new product or just when looking to improve your brand and offerings. Companies make better decisions when they place their customers’ needs and opinions at the core of everything they do. After all, brands are dependent on customers for their marketplace survival. This article takes a look at four reasons why market research is so important to any company, anywhere in the world:
Here are 4 reasons why market research is important?
1. Understand your customers
Our articles talk about building customer personas quite often, and there’s a reason for that. Customer personas are vital for getting to know your customers better, and build a better understanding of how exactly to market to them.
Knowing your existing and potential clients will assist with determining the market size and what prompts those people to buy. Insights gained by market research will include things like age, location, gender and income bracket – which will help with creating tailored, effective marketing and pricing campaigns.
2. Testing products before launch
Market research can involve running pilot studies or trials, and is recommended by most large corporations. Pushing a product or service to market prematurely, or before seeing if there’s even a market for it in the first place, is a recipe for disaster. Market research lets you test your concepts on a small focus group sampled from the larger market. If the majority embrace what you’re hoping to sell, you have an idea of what percentage of the market you could capture.