Market Research has always been useful for small business for strategic decision making. They have been engaging market research activities at different stages of product planning and designing, development of market penetration strategies, business model validation, understanding competitive landscape, demand scanning etc. In fact, any size of business (small, medium, large) can go for market research, because the more you know your market, the better you meet the needs and wants of your customers.
Let’s understand in brief the Importance of Market Research in business:
Today’s advanced knowledge is tomorrow’s ignorance as knowledge constantly makes itself obsolete in today’s globally competitive marketplace. Business ecosystem also changes in the competitive world and brings new challenges. And that creates the need, to mitigate those challenges with new solutions, going beyond the traditional course to solve corporate problems.
Small organizations often, moves through a phase where management has to take complex choices and a wrong business decision can be expensive for the firm. So, hiring a Market Researcher to provide them an external outlook where they can understand the problem from various perspectives and come up with an appropriate solution has become a common practice.
Market Research Consulting Services become a vital part of modern business culture and the key points that drive its importance are:
- It offers valuable data on demand, supply, customer needs and wants, market position, technical change and extent of rivalry. This information improves decision making ability for organizations.
- It enables conducting surveys and supplies data about consumer behaviour, i.e. age, incomes, likes, dislikes, opinions of the product. This information is utilized to attain production and merchandising policies.
- It serves to select suitable sales promotional techniques and to devise the budget for advertising and sales advancement.
- It can serve to minimize loss while launching a new product by identifying possible problems and prepare plans to counter that loss.
- It serves to boost up export potential by collecting data on consumers from different countries.
- It can facilitate business expansion when a company wants to enter another state or in a new country by evaluating the demographic and socioeconomic condition in that region.
Moreover Market Research services can help small business in making effective strategic planning depending upon the current state of the company and its future goals that increases organization’s efficiency to a greater extent. And besides it saves time and money because hiring a specialized skill people for a particular problem might be a costly affaire which may not be financially viable of new entrants into the ecosystem whose revenue channels are in a nascent stage to bear recurring expenses.