What is Market Research?
The process of gathering and analyzing information about a target market, competitors and customers. Market Research is an important component of any business strategy and should be used to identify target audience and consumers’ needs and preferences.
WHY IS MARKET RESEARCH IMPORTANT?
Conducting Market Research is often the starting point of any business plan. Understanding customers' behavior and preferences can help you create customer profiles and target niche markets. Sizing the market and proper competitor analysis will help you to evaluate if your target market is profitable and to write your business plan.
Many small businesses neglect market research because they are afraid of getting negative feedback. Business owners are convinced that their products and services are perfect and are too eager to launch their offerings. Instead, you should use market research as an opportunity to improve your products and services to better meet the needs of your target market.
Another reason why some small businesses avoid market research is that it's too expensive. But market research doesn't have to be expensive and time consuming focus group studies behind two-way mirrors. For small businesses with limited resources, gathering and analyzing information from existing market research reports, search engines and social media can provide useful insights.
Failing to do proper market research can be detrimental for your brand. And businesses that perform well are those that do their homework.