During the success of new business, the expansion of existing business activities, and the creation of new products and services, demand, customers, competitors, sales network, etc. studying such information is important. In this direction, market research is considered an important source of information. Market research also reduces the risks of the entrepreneur, and supports the establishment and expansion of activities in the right direction.
Why is marketing research needed?
While market research is critical to a company’s success, many companies see it as a financial burden when it comes to budgeting. Although good market research is not always cheap, it is very important not only for marketing, but for the company as a whole. The benefits outweigh the costs. Here it is simply necessary to look at the expended material resources as an investment. Some companies realize that the lack or insufficiency of market research puts the company at risk. But others still go to great lengths to avoid marketing research funding. You only need to see how successful results have been achieved through qualitative market research to understand the importance of this.
Market research is the systematic process of gathering information about customer needs and wants, analyzing that information, and applying the results to develop products and services. In addition to analysis, statistical methods can be used in marketing research. Thanks to this, you can tailor your product or service to the needs of your customers.
Using market research to increase sales
Understanding the market is your first step in developing a good sales plan. To understand the market, you need to conduct market research. That is, an effective sales plan is based on market research. To succeed in sales, it is not enough just to know what you are selling. At the same time, the market itself should be studied, including the big picture, competition and trends. If available, market research that constantly monitors the major players in the market and their movements provides reliable sales support.
How should marketing research be used?
Market research should be done to guide your decisions, not just to support your existing ideas and solutions. As a result of a report prepared for your company by a reliable research company, conclusions may appear that will lead to changes in your strategic plans. The results may tell you “No, this sector should not be entered”, “This company should not be invested in”. Being open-minded and impartial during and after an investigation is one of the most important criteria. An attempt to bring the results of the study in line with predetermined ideas will necessarily lead to negative results.
The market research includes the following information:
– Market participants and market shares
– Market micro and macro indicators, barriers to entry and exit from the market
– Current trends in the product and service sector
– Demographic and geographical indicators, wishes and requirements of the target audience
– Factors influencing the decision of the buyer
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