Importance of Market Research: Understanding the pulse of your target Audience in 2023

NOKIA, the brand that largely defined mobile phones for most Indians during the 2000s, now evokes nostalgia as we enter the 2020s. With the mobile phone market undergoing significant changes, new players like Xiaomi and OnePlus have established themselves strongly in India, while Nokia remains a name associated with fond memories of the past. If you are wondering, how these brands have emerged as global players while Nokia has failed thrice to relaunch itself as a smartphone giant? The answer lies in Market research. In this blog, we'll discuss the significance of market research for businesses of all sizes, emphasizing both big and small enterprises. However, before delving into that, let's understand about market research and its various types.

What is Market Research?

Market research is a way of collecting and studying information about a specific market. It involves gathering both qualitative and quantitative data. Market researchers use different methods like surveys, studies, and evaluations to understand important aspects of the market, such as customer satisfaction and advertising effectiveness.

Types Of Research

Based on your research objectives, you can select between primary research and secondary research.

Primary Research

Primary Market Research provides useful data that can be readily used. It includes different methods like interviews, surveys, online research, and collecting your own data. For any new business, engaging in primary market research before launching is crucial. It allows you to validate your idea's viability and provides essential insights to mitigate financial risks.  You are presented with two choices to conduct primary research. The first option involves hiring a market research agency with skilled analysts, which can be advantageous due to their expertise. However, this approach may prove expensive and not suitable for most startup entrepreneurs. Alternatively, you can opt for the second method, conducting the research on your own, which significantly lowers the financial burden of launching your business. By teaming up with Survey2connect, you can achieve your market research objectives swiftly with a variety of automated data collection and analysis tools. These tools offer complete user control and flexibility, empowering you to expedite your research like never before.  

Secondary Research

Secondary information refers to data that is readily accessible to the public. This may include government-gathered data like census records and reports from trade associations. Additionally, data obtained by other companies within the same industry might be utilized if it is accessible. Alongside these two market research types, there are two more terms you need to be aware of: Qualitative research: This research collection method focuses on determining customer motivations by interacting via small focus group interactions.  Quantitative research: In the quantitative collection method, the focus is on collecting a large number of data sets through surveys, pollings and other data collection means.  

Why Do You Need to Conduct Market Research In 2023?

Market Research is an essential part of the decision-making for every growing business. Not only does it tell you about what your customers think of you and your product, but it also tells you about what is helping your competitors grow and help you devise the product you would want to launch in the future.  Now, let’s discuss the reasons highlighting the need for market research.

Understand Your Customer Better

Shopping trends are fickle and while you might have a loyal fan base, you need to keep updating yourself with the latest trend and the changing demands of your customers.   Brands that wish to remain ahead of the curve always anticipate the change in the shopping behavior of their customers and to make sure they maintain their lead; they roll out the products their fans and customers ask for. Back in 2005, YouTube was initially intended for dating purposes. However, by actively conducting thorough market research, including self-conducted analyses, the founders soon realized that their video dating app did not meet customer demands. Analyzing the data, they discovered a gap in the market for video sharing platforms, as the existing services were unreliable and not user-friendly. By being attentive to their customers' needs and recognizing market opportunities, they adapted their platform and launched YouTube. Paying attention to customer conversations, actively listening to their feedback, and then addressing their requirements through timely customer-centered market research is an essential undertaking.  

For seamless introduction of new products

Research is not just limited to understanding your customer, but it also allows you to test your new products before launch. Smartphone brands today test their new products and system update prior to mass roll-out to ensure that the product meets the standard of their customer expectations. Doing so removes all the redundancies and molds the product to its finest form.  Even a new brand looking to step into the industry can use research tools to get broad learning of their product and the potential market. With this, you would also get an idea about the marketing narrative you need to adopt to make your product a hit in the market.

Competitor Analysis

Every business has its own approach and while you might still be working, chances are that your competitors might be taking a cut to your customer base. If that’s the case, you can use Market Research to understand your competitor’s approach.   A complete competitor analysis will tell you all about the key brands in the market and the ones that are on the rise. This would also help you identify the chink in your competitor’s armor. You can use these gaps to gain an advantage over your competition. This option comes in handy when your brand is in a marketing feud with a competitor. With Survey2connect, you can conduct relative brand comparison through focus groups, guided interviews, and pulse surveys for accuracy and agility.  

Minimize risk and support brands' market longevity

Charles Darwin stumbled upon a secret of marketing while he was looking for his theory of evolution. The idea that the ones who adapt and overcome survive while the rest perish is the belief on which the entire market exists. If your brand continues conducting research and uses key data points from market research reports, the chances of your outlasting your competition are high.  Nokia, despite being a market leader in the first decade of the 21st century slipped into near oblivion because of a lack of market study. While the mobile phone market transformed into the smartphone market, Nokia wasn’t prepared for the transition because of the absence of any data point. On the other hand, Netflix was way ahead of the curve with its extensive market study. The brands would need to conduct a regular market study in order to evolve and overcome the challenges coming their way.  

To anticipate future market trends

Every brand in existence hopes to grow and outperform its previous year’s numbers. But with a market that sees shifts and changes every year, it is hard to comprehend what the future might hold. To ensure that you can foresee future trends, you need to interact with the market, study it and then use your learnings to predict. Market Research helps you to do the same.

Helps in sales forecasting

Maintaining optimal inventory levels poses the greatest challenge for production managers. This is because production is conducted in anticipation of future demand, making a reliable sales forecast crucial. To achieve this, marketing research comes into play, employing various methods such as the market share method, salesforce estimate method, and jury method. These approaches aid in accurately predicting sales, and consequently, assist in setting sales quotas and devising effective marketing strategies.  

Wrapping up

Globally, the market research industry is experiencing significant growth, with its value reaching an impressive 82 billion USD. This growth is well-justified, as for a business to thrive, it must allocate its resources, both financial and otherwise, to the areas where they are most needed. Market research facilitates the identification of these vital areas, enabling companies to understand customer needs, drive innovation, seize growth opportunities, and operate with increased precision.  If you are looking for a platform to conduct and manage all your market research, Survey2Connect is the answer for you. With its audience cohorts and years of expertise in market study, you can rest assured that you will always remain ahead of your competition.  Are you ready to take your brand productivity to new heights? Imagine gaining powerful insights into your customers' needs, supercharging your marketing strategies, and boosting your overall business performance. Schedule your demo today with Survey2Connect and embark on a journey of unparalleled growth!

Get it delivered
to your Inbox.

No spam, that's a promise!