First, it’s important for us to understand market research in general. Market research basically implies using survey data to understand the customers’ categories and their motivations behind buying a product and use that knowledge to build more effective product development and marketing strategies for the companies.
Now, there are two basic types of market research, depending on the reason and the topic you are researching. They are primary research and secondary research. Stated below:
- Primary Research: Primary market research implies soliciting new information directly through surveys on consumers or via interviews from the sources like customers in a specific target market. You either conduct primary market research yourself or at the most hire someone to do the research for you. The process of primary market research involves the initial reaching out to the target customer market, asking the necessary questions, collection of the data, and statistical analysis of the gathered information. The decision-making depends entirely on the data, as does the devising of strategies or creating the policies.
- Secondary Research: Secondary market research basically involves using the primary research data collected by someone else to conduct further research, in more elaborated words, the compiled data from outside organizations like industry associations, trade publications, or government agencies. Now, speaking without loss of generalization both primary market research and secondary market research are valuable, but the former is more than often the type of research preferred by the company, and apart from that, also the one sort of shrouded in mystery as to the procedure and everything else. Now that we know what primary market research means, it’s time to learn the reason behind its importance, and why someone should invest his or her time and efforts in it if he or she aspires to become a successful entrepreneur.
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Why And How is it Important?
1. Identification of the Strength and the Weak Points:
Knowing your strengths and also your weakness, massively helps you in taking profitable risks in life, and hence it holds in business as well. Accurate market research if conducted personally can help you in correctly identifying the well-performing business areas that demand attention, as well as those which will be clever to give up on.
The process also helps you in discovering and understanding the needs of customers in order for better innovation, expansion at the right moment with accurately directed focus.
2. Understanding the Needs of Customers:
Of course, it is never enough to simply just know the business; what an aspiring entrepreneur has got to know is what the customers are saying about him or his company – and also about the competent competitors in the market. Understanding your customer’s thinking process means a step forward in creating apt products to solve the issues and complaints, which will help you, in turn, to reach out to them at the moment they are most prone to listen. Ultimately, these can persuade them to become your loyal ambassadors.
A huge part of any primary business-market research should be dedicated to increasing satisfaction rates of the faithful customers, as well as observing the mass reactions to any new product in the market, and hence predicting what they will look for next.
3. Conducting the Marketing developed on Informed Decisions
Launching a business and consistently running it over any time period involves the making of strategic decisions every time, whether it be about customer services, products, future business expansions, or anything else. It goes without saying that without a solid aid of serious market research to back those decisions, every work done is nothing more than guesswork, which means hoping the results to be in your favor without logical backups.
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