Benefits of Market Research

Market research is conducted to determine the viability of launching a new service/product or entering new markets. There are professional market research companies that help businesses in gathering the relevant data through primary and secondary methods and analyzing it to gain insights. Comprehensive market research entails systematically collecting data on all factors that affect the business such as target market, competition, and external environment.

It is advisable for businesses to undertake market research before launching a new product as it gives them the information that provides the foundation for plans. The main benefits of conducting market research are:

1. Understanding the customer — Market research can help a business in understanding potential customers. The research will help identify their likes, dislikes, buying patterns, preferences, and unmet needs. The business can use this information to design or modify its products in a way that will bridge the gap in the market and attract customers.
2. Analyzing competition — Market research services include competitive landscape analysis. It is always beneficial to know how competitors are operating in the market, their strengths, weaknesses, USPs and selling strategies, as this can help the organization design its own plans and operations.
3. Assessing potential threats and opportunities — Many external factors can affect a business. An expert market research company can identify the potential threats in the market. Similarly, it could find a gap in the market by identifying emerging trends that could be a new opportunity for the business.
4. Assessing investment risk — Market research services help an organization in determining the feasibility of new projects, such as the launch of a product. It enables the management to make an informed decision on whether they should invest time and energy in the proposed project or not.
5. Building market position — Market research can help a business in understanding how to position offerings, and in designing apt communication strategies to connect effectively with customers.

Therefore, market research helps in gathering intel on what consumers want, which product to develop so that it would serve customer requirements best, and how to maintain a competitive edge. It enables businesses to think of new methods, ideas and tools that will improve effectiveness.

It is advisable to have a market research company undertake this process as they have the required expertise and experience to conduct the process methodically and provide actionable insights.