Why is Market Research still an essential marketing tool?

Have you an idea for a new product or service? Maybe you want to go international with your business? Perhaps you want to expand your product range?

Coming up with a new product or business idea is a huge step; yet it’s only the first step on a long road to presenting your customers with your product or service. Regardless of whatever your next step is in business, you need to conduct Market Research. Talking to your family and friends about your idea is not enough to validate it. You need strong research. To attempt to develop a product and go to market takes massive investment of time, energy and finance. You don’t want to waste that.

You have to ask the following:

– Who is my target market?

– Who are my main competitors? How competitive is the market place?

– Is there a gap in the market?

– What are my costs and what price should I be charging for my product / service?

– What are the strengths/weaknesses/opportunities/threats of my product / service?

– What is going on in the industry which I need to consider in my business planning?

When you can answer these questions, you have the information you need to develop your business strategy.

There is a lot more to market research than a clipboard or a researcher phoning for 5 minutes of your time to answer a few questions. The Market Research Process is a lot more involved and typically has these stages:

  1. Set your research objectives
  2. Design the questionnaire – and decide how you are going to get the information
  3. Carry out the research
  4. Data Analysis – this is where the skill comes in to be able to interpret the findings
  5. Present the findings in relation to the objectives set

For your market research to be effective; and to optimise your chances in the market, you need to follow these steps.

Coming up with a new product idea is exciting and it’s tempting to think that the marketplace will all rush to buy your products, but it doesn’t always work out that well, and most new product ideas never make it to market, or fail in the first year.

However, with the right market knowledge, you can be sure to find out if there is a market for your product; position it in the right gap in the market; and target the right customers. Market research helps cut out such simple mistakes and gives your product the best chance of success.

 

If you would like to see how Ingenuity could be of benefit to your company click below to contact one of our consultants.  

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