Why Your Business Cannot Do Without Market Research

Posted on Aug 7 2019 - 4:03am by Admin

Marketing is one of the most crucial aspects when starting a business. Contrary to popular perception, it does not consist solely of flashy advertisements and viral campaigns. It also involves understanding your target market and knowing how to capture their attention and loyalty.

One of the strategies used to solidify a marketing plan is called the 4Ps framework, which stands for Product, Price, Placement, and Promotion. Once these four factors are decided on, you can then target your marketing efforts towards your intended audience so that they are converted to customers.

In building the 4Ps framework, it is crucial that market research is done thoroughly. Market research involves knowing as much as you can about your target market, including their needs, preferences, purchase habits, and more.

Here is how market research can improve your marketing plan:

1. Make your product innovative.

Business meeting

Doing business is all about grabbing opportunities to fulfill consumers' wants and needs. Market research thus allows you to examine the current market and see where the opportunities lie. From your findings, you can then come up with an innovative product that satisfies any unmet needs of consumers.

This does not have to be done solely by creating a wholly new, original product. You may also opt to take an existing product and act as a reseller to market it to a different group of people who may be in need of it. If you find yourself with limited resources, reselling and franchising can be a great way to start your business journey.

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2. Set the best price.

Everyone is always looking for the best value for their money, and a reasonable price for a good product provides just that. When doing market research, it is important to note down the prices of similar products or those of competitors. That way, you do not price your product out of the market.

If you are a reseller of an already established product, it is also important to take note of the manufacturer's pricing policy. For instance, a minimum advertised price (MAP) policy states the lowest price that resellers of a product can advertise. This is set in agreement with the manufacturer and is used to protect both the manufacturer and authorized resellers, as well as to preserve the product's value.

3. Be at the right place and time.

Some products are specially designed for certain conditions; for example, winter clothing and beachwear. Some may also be capitalizing on trends or fads in the market. Succeeding in business entails knowing what is needed in a specific place at a specific point in time, and making sure that your product is right in the middle of the action. This is why it is important to take note of where your target audience is located and what their needs are in certain seasons, given this location.

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4. Nail your promotion.

Analyzing online report

Knowing your target market entails knowing what they like and what they will respond to. Your promotional activities must, therefore, be in line with these so that they sufficiently capture your audience's attention and bring the product to their notice. After all, it is very difficult to sell a product that no one knows about. Hence, marketing efforts are needed to ensure that your product stands out, among others.

Without proper efforts in marketing, from the first research surveys to the snappy taglines, it is difficult to get business for even the best products. However, an integrated and properly thought-out marketing plan can bring your business to heights you could never have imagined.