How To Understand What Market Research Is Beneficial To Your Company?

The current business environment does not guarantee sustained growth or year-on-year profitability. Product life cycles have shortened, calling for more strategic decisions to be taken through changes in business models.There may be new entrants, as business competitors from outside the industry. The Market dynamism necessitates periodic market research activities for scanning the market to identify business opportunities to stay competitive. These are specialized activities, carried out by professional market research companies.

Depending on the kind of industry your business belongs to or serves, you will be required to shortlist industry research companies having expertise in conducting market research for the industry your business belongs to. 

Such companies that you engage in, study the direction in which your company’s business is heading. They gather the required knowledge of your company’s resources, capabilities and strengths.

Before Identifying Market Opportunities there are analyses that these industry research companies will make. Data gathered by them will be collated through a qualitative market research approach. Such activities could involve the following:

 

  • Analyze Consumer segmentation- an insight into the demand for your products or services that need to be understood. To do so, identification of the segments of customers with common characteristics will be needed. Characteristics such as chronological age, gender, level of education, occupation, values, attitude, lifestyle​​and purchasing motivations need to be studied for qualitative data analysis.

 

If your business is in its nascent stage or yet to take off, a thorough analysis of the segments of the consumer will surely be required. It will benefit new product conception to meet the changing consumer segments and the shift in their purchasing behaviour.

For example, if you are in the business of packaged drinking water you may have to tweak your product to add flavour to the drinking water. This may be necessary to cater to the changing perception of a majority of customers who would now, not only perceive packaged drinking water as healthy but also good tasting. 

  • Analyze the situation under which Purchases are made- Any opportunity warranting business expansion would call for review of the purchase analysis. It would require such question to be asked:

 

  • When do people purchase your products or services?
  • Do they make a need-based purchase?
  • From where do they purchase?
  • What mode of payment is adopted by them?

Answers to all these questions and more help you to position your products and services suitably.

 

  • Analyze the direct competition- In case you are in a competitive business environment. Facing competition from companies with the same product type and same target area and customers you cater to, will lead industry research companies to enable you to answer such questions like:

 

 

  • Reasons for significant growth in the business of your competitors?
  • Value propositions provided by your competitors?
  • What is the competitive advantage your business has over your competitors?

 

  • Analyze the indirect competition- There could be an opportunity found when analyzing companies offering a particular type of services to which your company could provide an alternative,should their services increase in price.If the hotel room tariff charged by regular hotels situated in remote tourist spots goes up you could think of a “HomeStay” business at a competitive rate.  

So, now you know that your company will benefit from different aspects of market research. There cannot be any cook-book recipe for your kind of business. The dynamism of market forces, your target, the competition you face from the competitors, the changing purchasing behaviour of your customers and changes in many other variables would warrant different approaches to a market survey.

Comments are closed