Using Market Research

Using Market Research

Understanding the Use of Market Research

Gathering Data:

  • Market research is crucial in gathering data about potential customers, their needs and preferences.
  • It aids businesses in understanding the profile of their target customers, such as age, gender, income level, and lifestyle.
  • It involves collecting information about customer behaviour including purchasing habits, brand loyalty, and responses to pricing and promotional activities.

Evaluating Market Potential:

  • The information obtained through market research helps evaluate the potential of a particular market.
  • It helps in assessing market size, growth rate, and profit potential.
  • This aids in deciding whether entering a new market or launching a new product is a good business decision.

Developing Marketing Mix:

  • Market research is vital for developing an effective marketing mix - the combination of product, price, place, and promotion strategies that a business uses to reach its target market.
  • It can help identify the right product features, price levels, distribution channels, and promotional messages that will appeal to the target market.

Improving Customer Satisfaction:

  • By uncovering the needs and expectations of customers, market research allows businesses to improve the quality of their products or services.
  • This leads to increased customer satisfaction, higher sales and potentially larger market share.
  • Market research often involves studying changes in the market, such as emerging trends and customer preferences.
  • This helps businesses stay up-to-date and adapt their offerings accordingly, keeping them competitive.

Mitigating Risk:

  • Market research reduces the risk associated with business decisions.
  • It provides evidence and information to support decisions like market entry, product development, pricing and promotion, reducing the chances of costly mistakes.

Assessing Competition:

  • Market research includes studying competitors in terms of their market share, product offerings, pricing strategies, promotional activities and more.
  • This helps businesses understand their competitive position and devise strategies to differentiate themselves from the competition.