What is Market Research?
“Market research is one of the important components of business strategies because it provides analyzed information about needs of market, market size in the global marketing system and customer needs”.
Importance of market research for an entrepreneur:
Why is market research done before starting a new business?
This organized data of market research have a great importance for entrepreneurs that come up with innovative business ideas. So, it is essential for entrepreneur to step forward of their enter-price.
As this is the era of Global marketing so there may be a great difference between the introduced products in a specific market and the customer’s requirements. By getting a public response for a product an entrepreneur can hope to get funding for his business.
Knowing the customer’s behavior will help to know that what triggers the customers to buy products.
The other one point in the marketing system is competition within the market. A new entrepreneur may have the business ideas to sell products that may not be of worth importance for the customers. So market research helps entrepreneur to compare his products with the other same products already found in the market of other brands.
The competitors take away the customers and win within the market. That’s because they do their research ahead of you. So it is important to do the market research for an entrepreneur if he wants to stay.
Pondering on market research entrepreneur finds exhaustive ideas to make his products better and of worth importance than the already selling products in market.
Testing the product is much important before running a business. Every idea must be tested before disclosing it in front of the market. By testing an entrepreneur saves himself from additional expenses and launching the bad idea or product to the market.
An entrepreneur never becomes sure of instant connection with the customer. So with market research entrepreneur finds an approach for marketing the product.
Market research provides a clear picture of the latest trend along with the products and services that are going to be demanded in the future. The reaction of the public to the business ideas is really helpful for a business venture as a result of undertaken market research. With a complete market research one can know that what kind of customers can be interested in his idea or products and where he can find them.
Small business owners have a limited budget. Their budget must be optimized to give the best results. Market research enables to reach the audience where there is most likely chance to view their message.
As the market’s environment tends to be dynamic time to time so once the
entrepreneur gets the customer’s attraction then he succeed in maintaining the competitive edge by sizing up his business. You need to be able to get change too. So market research helps the entrepreneur within the start of phase in marketing, identifying the target audience within in the best location for his business, his marketing plans and its characteristics. And within the expansion phase to re-evaluate new market opportunities and customer’s changing needs. Market research is important in a way to know that whether the business idea provisioned by the entrepreneur already exists in the market for any product or service.
For starting a new business it’s important to get customers as soon as possible.
Hence market research is much important to get more and more customers immediately.
The biggest pitfall of most of the beginners is that they don’t differentiate
between the facts and the assumptions. They usually get closer to their first customer instead of creating a net. This happens just because of lack of skills to launch a product. Market research adds values to the skills of entrepreneur.
When the entrepreneur sets goals for a business it results in the growth of
customers and audience. Without market research this is impossible to know that does the business goals really work? How to achieve them? With the market research one can get the perfect directions to grow the customer rate.
The need of market research also occurs in making the tough business decisions.
By market research one can know that where to spend the market budget or whether there is a demand for your new product or not. So market research provides the solid facts which can save the budget.