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Why is market research important?

DSM Digital School of Marketing - market research

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.

3. Know about your competitors

Many brands use market research to stay competitive in their industry, by monitoring competitors and their share of the marketplace. This enables them to identify key players, and monitor those on the rise. Market research can also help to point out competitor weaknesses; gaps which you can fill with your offerings. Having an idea of what your competitors are doing to capture their audience makes you up your game as well as think outside of the box. Remember: you don’t want to follow the trends – you want to set them.

 

4. Trackable business growth

Those interested in the long game can leverage regularly executed market research to track their impact on the market. You can, on a regular basis, assess and comprehend the demands of customers, detect more business opportunities, plan better marketing campaigns, and ultimately improve the bottom line through data-driven decisions. By reaching out to customers for their opinions over time, brands can reduce their risks and deliver the best possible services and products to their audiences.

Market research assists you with understanding the demands of your customers, detecting more business opportunities, planning the perfect marketing campaign, minimising losses as well as keeping track of the competition. Marketing research allows organisations to classify their objectives while following the current trends as well as taking advantage by reaching out to their target audience.

Detecting problems before they happen is vital if you want to grow. Efficient market research will not only assist you with predicting some of the pitfalls which can occur but also it will also save you a lot of money. The process of market research itself is designed in order to reduce the risk as well as to make the marketing strategy cost effective for your business.

The commercial world is an exciting one, and understanding customers is critical to marketing success.

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