Seven Ways a Market Research Company Can Add Value

Published on 22 Nov, 2019

Market research entails systematic gathering and analysis of data for a specific business environment. The company can use the information collected to take strategic decisions regarding its product or service. An essential process for both existing and new businesses, it helps in avoiding costly mistakes.

Market research company aids in understanding shifts in the industry, changes in consumer needs and preferences, and regulatory trends. Accordingly, businesses can take an informed decision on where to focus efforts and resources.

A market research company can add value in:

  • Setting goals – Market research covers industry trends, market volatility and changing customer perception. Factoring in these, businesses can set realistic goals. For any business, it is important to have access to latest news/developments, and be aware of changes in government regulations and other external factors, as this helps in aligning objectives accordingly and being prepared for abrupt shifts. Market research makes this possible.
  • Understanding customers – A market research company can help you in understanding and managing your customers and their requirements. Knowing the what, why, where and how of customer purchase behavior can help in anticipating their needs. Most business decisions have to be modelled around this keystone. Knowing your customer is the most important facet of every business and, therefore, obtaining correct data is of utmost importance.
  • Developing product strategy – Designing the right product is the first step in the ladder of success. The core of this strategy is to comprehend how the product or service will solve consumers’ problems and bridge the existing gap. Understanding product differentiating factors, USP and how to create or modify a product such that it can beat a competing product can help the business gain an edge over rivals. A market research company collects necessary data and analyses these to generate insights that can be used by businesses to devise an effective product development strategy.
  • Tapping market opportunities – Identifying opportunities for business requires detailed market analysis. To enter new markets, knowledge of existing products, customer perception, supply chain, and competition is a must. A market research company can evaluate potential markets and alliances for a business that is looking to expand.
  • Understanding market structure – It is essential to have intrinsic knowledge of the market the business is operating in. Saturation level and product maturity need to be measured to gauge the market potential. Factors such as technological advancements in the industry and threat of product becoming obsolete should be studied in detail. Market research provides the information from where these valuable inputs can be unearthed.
  • Gaining competitive intelligence – Staying update about competitors’ activities is vital for every business. Competition monitoring and analysis come under the spectrum of market research. Ascertaining competition, mapping activities of rivals, evaluating their strategies and gaining insights on their next move can be effectively leveraged to expand market share. As the competitive landscape is shifting continuously, competitive intelligence gathering should be a regular process.
  • Ascertaining business risks – Market research helps in understanding business risks. Since research entails collection of data on various aspects of business, potential issues can be spotted. Accordingly, strategies can be devised to avoid pitfalls or prepare for them; not hedging against business risks can prove to be very costly.

Collecting data is only the first part of market research. Collating, standardizing and processing it to interpret accurately is the most important step of the market research process.

Market research helps in situation analysis, devising correct business strategies and determining which customer and/or market segments a company should target. It is a brilliant evaluation tool that does a comparative study to present you with the market scenario.

In the absence of an in-house team equipped to do market research, services of a market research company must be availed, given the significance of on-the-ground intelligence in gaining competitive edge. Market research is necessary in reaching out to your target audience and increasing revenues.

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