Market research is undoubtedly one of the most important types of research a business should conduct because it negates a lot of problems that otherwise would have destroyed a business. Nowadays, market research is seen as a standard and mandatory. But why is it so crucial to business growth? In this article, you will learn why market research is essential for business growth and statistics to prove the point. Without further ado, let’s get started.
The Purpose of Market Research
Market research is critical because it’s the backbone of business growth. It’s the deciding factor between a sale and a bad review. It’s about being inside the consumer’s mind and knowing them so well that you know exactly what product or service they would like to purchase. Picture this. If you were to have a friend try to sell you a product and a stranger sell you the same product. You’d most likely buy from your friend, right? This is what market research is supposed to solve. Good market research allows you to know the problems, wants, hates, and pain points your potential consumer might have.
A good market strategy should give you a clear view of your marketplace and competitors. What are your competitors doing that you aren’t? It can also help you formulate a plan on how you will market your products. For example, if most of your target market uses Instagram as their primary social media platform; Then it would be wise to place ads with Instagram instead of Twitter. It also determines who and where your business will thrive. Is it from an age group of 14-17 years old from New York? Your market research should determine this so your business can implement a plan to speak their language, problems, and wants.
Failed Market Research Cases
Not quite sold on market research just yet? Take the case of the Ford Edsel. In the late 1950s, the Ford Edsel was supposed to be the new car for American families. It was supposed to be a revolutionary car and a game-changer for vehicle transport. At least that’s how they marketed the vehicle. It had 18 different models and varieties in its release, but the public wasn’t buying it.
Due to several car-related problems, we won’t mention them in this article. The Ford Edsel was also Ugly, overpriced, overhyped, over-marketed, and bulky. The main complaint of the public was that they wanted more “economic and compact” cars. Suppose Ford had done more research on its market’s financial status and wants. The Ford Edsel could have been one of the biggest successes in marketing history.
Another case is the marketing failure of Kodak. They failed to recognize market needs and missed a fortune, instead of conducting market research to realize that the market wants an excellent camera to take great photos. Kodak kept producing film for their cameras. This cost them $10 billion in revenue between 1996 and 2011.
Market research can also reveal how your customers view your new products, services, branding, etc., crucial for improving your business. For example, if a customer dislikes your new product, ask them “why?”. When you get enough people to do this, you start to see information that you would have never had before. Market research helps you decide what new features, products, or services your business should release. It enables you to determine beforehand if an idea is good or bad. Will it succeed or not?
The backbone of any good market research is good marketing strategies. These take time to create, implement, and improve. Creating a marketing strategy should take lots of time and information gathering. When implemented, make sure to take notes and improve them overtime to keep up with the rapidly changing market.
However, how do you create good marketing strategies? The purpose of market research is to gain valuable information; Therefore, gathering this information is the most crucial factor in creating a good marketing strategy. Without a clear understanding of the market, your business is destined to fail.
One of the best ways to gather information is by using proxies. Proxies allow you to surf the web safely, quickly, and reliably without worrying about data leaks in your marketing strategies. Geonode offers one of the best residential proxies in the market, which allows you to gain actionable intel on your target market. With the use of residential proxies, gathering information has never been easier. It is also a great way to prevent your business from leaking confidential marketing details to your customers, rival companies, and hackers.
In conclusion, market research is critical to business success. And conducting market research highly depends on how good your marketing strategies are. Marketing can make or break your business, so it’s vital to take your time in creating, implementing, and improving your marketing strategies.