Importance of Market Research in Business Before Product Launch
In the year 2010, two talented & young tech enthusiasts decided to create a location based application, Burbn. The app would let customers to check-in, make plans with friends and share pictures. A few weeks after the launch, debates and assessment of the market they realized that Burbn is hard to figure out hence their target market is keen on Foursquare and are unwilling to switch. After taking a good, hard look at the app, they began working on the app from scratch. Removing all the other features, the app was trimmed down to photo-sharing, liking, and commenting. And that’s how Instagram was born.
That’s the power of market research before a product/service launch for persistent success, businesses need facts, not conjecture. Understanding what consumers want is what market research is all about. A sound market research alleviates ambiguity, allows you to venture into the unknown well-prepared and ensures that product idea target the unspoken needs of customers. Giving a clear picture of client’s goals, needs, values and making it easier to drive them towards buying products or services, a good market research puts you a lot closer to your target market. A regular market research helps you check with your current customers and potential customers to ensure that you’re still meeting their needs. For a product to be tailored as per customer’s needs, product research is equally important. For beneficial outcomes, outsourcing web research services and product research services to the experts will be a smart move.
Market Research Can Be Done Two Ways:
• Primary Research
Reaching out to the target customers, gathering and analysing information is what primary research consists of. Based on that information decisions are made, strategies are planned and policies are created. Primary research helps explore issues, allows you to ask relevant questions, gives a clear, closer look at the market and gets you closer to your goal. It takes time, efforts and costs more than secondary research but it is more effective and gives you the real image of the market you are aiming for.
• Secondary Research
Also known as desk research, it is a type of research that has already been compiled, gathered, organized and published by government agencies, trade associations or other businesses within your industry. Companies with a strict budget limit can opt for secondary research as the data can be obtained quicker cost-effectively.
Benefits of Market Research:
• It Confirms Market Needs
Providing right product or services to the right audience is what makes any business succeed. And acting as a compass, market research pinpoints consumer need and any existing gaps in market offerings. It figures out two things; first the price point at which people will be willing to buy the product/service and secondly the lengths they will go to get it. Business can even anticipate market trends and prepare according to the changing market conditions rather than be bewildered by their impacts.
• Determines The Target Market
Maintaining current customers are important and often more important than having new ones. Good market research is vital as it serves as a way for companies to define the people buying and using their products. To know about the how, when, where and why of target market enables businesses to get a better grasp on their ideal buyer persona. Even basic demographic details allow companies the insight they need. With which they can create better marketing materials and design better products.
• Helps Taking Cognizant Decisions
Organization growth depends majorly on the way decisions are made by the administration. Market Research before a product launch minimize the risks involved when making key business decisions. While recognizing how clients and potential clients may view your business, it helps your marketing strategy and spot gaps in customer expectations.
• Strengthens Marketing Strategy
Along with a deeper understanding of your customer and competitors, it provides key insights of the business. Research helps to comprehend who is buying the product/service, who isn’t buying, what motivates the audience, whether they are loyal to the brand or not. Finally, the findings lead to increased revenues over time.
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