Nowadays many educated young are willing to build their career in entrepreneurship. They mostly are pushing themselves in online businesses. To start a business one should make a plan for his/her business. Before making a business plan, one needs to fix a niche and know about the target customer. I am today going to discuss market-research which is a crucial action that needs to be performed before launching any business.
Market research is the process of collecting required information about target customers before launching a new product or service. It also can be performed before launching a new version of an existing product or service.
For example: I am going to launch pure mustard oil in the market. Now, before launching the mustard oil, I need to know who will be my customer? Where do they live? What is their social status? How is their purchasing ability? Where do they now buy from (who are my competitors)? What is their demand and expectation?
Finding the above question’s answers is called market research.
Market research is a crucial component when you are launching a new product or service, try to improve your existing product or service, or when you are just looking to be a step ahead of your competitors. Here are some reasons why it is important for your business.
1. For knowing your customer:
Customer is the final destination for every business. So, it’s important to know your customer’s behavior and mind. The more information you have about your customers the more understanding you will get about them. This will result directly in meeting the customer’s needs better than your competitors.
2. For knowing your competitors and how they approach the market:
The competitors are taking away your target customer and win the market. That’s because they have done their market research before you do. And now, if you have to do the same if you want to run in the race. By doing market research you will be come to know about your competitors and how they approach the market. What are their strong points and what are weak points. The more you know about your competitor’s strengths and weakness the more better business plan you can make.
3. For testing your product before launching:
Market research also helps you to test your product before launching in the market. It reduces the risk and additional expenses. You can never be 100% sure that your product will instantly connect with your potential customers. With the market research, you will be able to know what approach you should take when marketing your product.
So, don’t launch a product without market research.
4. Market research can help you minimize loss in your business.
With the market research, you can reduce the chances of loss to a large extent. Before launching a product, you can identify potential problems and even determine the solutions. After fixing the potential problems if you launch a product then there are will not be probability of loss.
5. For your Business growth:
Market research is crucial for your business growth. Because market research helps you comprehend the demands and expectations of customers, detect more business opportunities, plan a perfect marketing campaign, minimize the losses and keep track on the competition. It allows businesses to classify their objectives while following the current trends and take advantages by reaching out to their potential audience. If you want to grow, then its crucial identifying the problem before they happen. And you only can do this with market research.
In fine, the market research provides you with important information about your customer and competitors that helps you identify and analyze the market needs and make a better business plan.
I hope this article will help you to understand the need of market research before launching a product or service.