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Why do Businesses Invest in Market Research?

By 24th September 2017Blog

Market research is vital for businesses of all sizes as it provides real data which can be used to improve and strengthen various parts of the company. Research is really important when developing a new product or service, and questioning your own customer base can provide a useful insight to drive business growth.

Businesses can also use market research as an indicator, to tell them where to go next. Before investing heavily in something new, such as a new product or a new way of manufacturing, it’s a good idea to get a public opinion on it. Investing in market research can prevent companies from wasting money on something that the target market doesn’t want or need.

Get objective opinions on your product/service/company

When you’re directly involved in a situation it is hard to have an objective view. Simply believing the opinions of your employees, business partners, family and friends is not enough because they are biased. By conducting market research you’ll be asking for the opinions of the people who genuinely matter to your company – your target customers.

Reduces risk

Another important reason to conduct market research is risk reduction. Businesses often take gambles on new products or branching out into new markets, and this shouldn’t be done without a good amount of research. Similarly, if you’re asking for investment of any kind then the investors will need you to demonstrate that there is evidence of potential success – market research is a way to prove there is a market for your product or service which can reduce the risk involved.

Position yourself above competitors

By undertaking market research you instantly have an advantageous position over your competitors. The data collected will provide valuable insights which you can use to find new opportunities and growth prospects.

Should I use a professional market research company?

Once you’ve established a need for market research then you need to decide how to carry it out. You can produce the surveys or campaigns and distribute them in-house, or you can hire a market research company to take care of everything for you. While it is possible to conduct market research yourself, it can be very time consuming and you may not have the software and man power to analyse the data to its full potential.

Specialist market research services can include qualitative and quantitative research, telephone campaigns, focus groups, customer questionnaires and data analysis. The company will be experts in both online and offline research techniques and will be able to advise on the best way to capture data for your specific research project. Another advantage of hiring experts is they have done this many times before, and understand the most effective processes. They can even help create the most useful questions is surveys and questionnaires so you gain more beneficial data.

Businesses invest in market research to improve their products and gain a competitive advantage. All business projects should be data-led; do you have enough data about your target market?