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Importance of Market Research in Business Before Product Launch

Importance of Market Research in Business Before Product Launch

Product-based businesses are increasingly expanding their market by targeting the right customers. Customers are the king of the market who make the product hit. Therefore, keeping the consumer happy is the ultimate goal for product-selling businesses. As we all know, the economy is vast, with different products in the market along with substitute products available.

For example, there are a variety of options available for tea drinkers. Set A consumers rely on “The Taj Tea Brand,” and Set B consumers rely on “The Red Label Tea Brand.”

Just in case set A consumers still need the Taj Tea. Hence, those consumers can buy Red label tea brands temporarily. This becomes a brand substitute option.

On the other hand, product substitute is defined as where the entire product range is different. For example, set A consumers like Tea; however, due to insufficiency in the market, consumers can opt for coffee as a substitute product in the beverage range. This is defined as a product substitute solution.

Therefore, understanding customers’ demands is the top priority as a business owner. Businesses who tend to sell products in the market also require an understanding of problems in the economy and how their product can bring a solution for the same. Identifying this can boost the business in the fierce competition.

However, launching a new product or rebranding an existing product requires a lot of time, research, and effort. Since the vast market, identifying all such issues and understanding consumers’ buying behavior is the next-to-impossible task. Hence, a beneficial aid for such a problem is market research.

As a startup business or high-end brand, the prime goal of every business is to make the product successful in the market. As a matter of fact, market research helps to make the product 60% profitable. Market research helps to fine-tune the product according to the needs and demands of the market, such as pricing factors, variation of the product, type of consumers to hit, and much more. All types of data are collected via effective market research methodologies. Let’s understand market research and how it helps in product launches.

Importance of Market Research and its Role in Product Launch

Market research is an essential tool for any product-based business as it helps to gain a lot of data about the market, customers, and their needs. When a business launches a new product, a lot of things are considered, from understanding what people are looking for to market trends, patterns, and needs for the same. One of the best examples of this is as follows;

Apple noticed that consumers need security and great cameras in regular mobile phones. Hence, Apple developed high-security features and an exponential camera that attracts the consumer to their product.

The brand only launches a new product only when equivalent market research is done that gives insights on how the product is going to be in the market, what problems it can solve, pricing aspects, set of consumer targets, what strategies to create before launch, competitors product, strength and weakness. It creates a 60% probability of the product’s success. Although two potential methods of market research services can be followed accordingly

  • Primary Research- Primary research consists of reaching out to the target customers and gathering and analyzing information. 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 and effort 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 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 quickly and cost-effectively.

Perks to Avail by Market Research

Conducting effective market research can provide impactful results for the firm. It helps to make the process of product launch easier in the vast market. Following are some of the benefits of market research.

Perks to Avail by Market Research

  • Understanding Market Needs
    Providing the right product or services to the right audience makes any business succeed. Acting as a compass, market research pinpoints consumer needs 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 second, the lengths they will go to get it. Businesses 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 is 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. Knowing the target market’s how, when, where, and why enables businesses to grasp their ideal buyer persona better. Even basic demographic details allow companies the insight they need. With which they can create better marketing materials and design better products.
  • Helps take Cognizant Decisions
    Organizational growth depends mainly on the way the administration makes decisions. Market Research before a product launch minimizes the risks involved when making key business decisions. While recognizing how clients and potential clients may view your business helps to make marketing strategy and spot gaps in customer expectations.
  • Strengthens Marketing Strategy
    Along with a deeper understanding of your customers and competitors, it provides key insights into the business. Research helps to comprehend who is buying the product/service, who isn’t, what motivates the audience, and whether they are loyal to the brand. Finally, the findings lead to increased revenues over time.
  • Identify Growth Opportunities
    Market research provides in-depth insights into consumer behavior or current market trends and helps conduct and identify new growth opportunities in the fierce market. It can also be product improvement, business partnerships, unreached segments of the economy, and much more.

The list of market research benefits depends on the business type and its product. These are some significant mentioned benefits.

To Wrap Up

Market research is a crucial aspect of any business to be successful in the economy. It provides insights and practical information that can be helpful to target the right audience. By leveraging market insights, businesses can efficiently understand the demand, minimize the risk of failure, and drive better marketing strategies. eDataMine offers a comprehensive market research services solution for various sectors to excel in the market.

Increase Business Visibility with Effective Market Research

Maulik Patel

Managing partner at eDataMine. With 15 years of experience in the data management field, I have accomplished 350+ projects across the globe. Blending my technical knowledge and executive vision, I intend to provide solutions that benefit businesses. I don't believe in merely completing a project rather I aim to provide fulfilling experiences that generate long-term relationships with the clients. Constantly encouraging a culture of accountability, integrity, and respect, I ensure that all the departments have the same goal of achieving excellence.