Importance of Market Research in a Business Plan

Importance of Market Research in a Business Plan

Market research has always been a part of the key fundamental of setting up and smoothly running a business. Never ever has a business been able to succeed without conducting a thorough market research of their audience and products & services. 

What is market research? Market research is the simplest way for the entrepreneurs to keep up with the latest trends that are currently active and in usage in the market. However, the type of market research may vary with the nature of industry. As a businessman or marketer, you must know the importance and meaning of marketing research.

Have you ever wondered why big organizations invest huge amounts on research for their businesses? The reason behind them spending so much is to grasp every bit of information that floats in the market and could help them achieve their goals better. For example, companies like Apple and Microsoft are always investing money to research new trends in technology as well as on analyzing consumer behavior. It is for this reason that they are able to succeed and stay ahead of the competitors.

Is your business, products or services able to fulfill the needs of your target audience? If your answer is yes, chances are that you already invested money in market research. But if your answer is no, then your business needs thorough market research to achieve its set goals.

Here are few a few advantages of a market research:


Lowers risk factor

Carrying out market research for a business helps measure the risks involved with implementing various decision-based actions. After a detailed research, your business is likely to be more certain on whether to act on those decisions or not. If your market research provides significant evidence of success, you must go for it. However, if your market research doesn’t provide enough data or confidence, you mustn’t take the risk. 

If a particular activity requires a big investment, market research will help you analyze if taking this risk is worth taking for the organization.

Increases Sales

Carrying out rigorous research enables you to pitch your business products/services in a much effective way that indirectly boosts your sales. If you grab the pulse of your customers, it becomes easy to target them and hence boost sales.

Increasing sales and conversions in a short time span is one of the most common reasons for conducting market research. Businesses are on a constant lookout for methods to increase sales, and familiarize themselves with latest techniques that businesses are using to get more sales. Market research is an effective way to identify the areas of success for a business.

Improve Customer Relations & Management

Market research involves getting a better understanding of your target audience and thus offering them products and services that are aligned with their wants and needs. Asking your audience business-specific questions will help you get valuable and honest feedback directly from your customers. Ask them how they recognize your brand? What is the most that they like about your brand?

These customer-centric questions give provide an insight into how your customers perceive your brand. The primary factor that is effected by a market research is customer relation.

An example of this is Twitter polls! Asking business-specific questions always helps the business to know their customers much better.

Business Growth

A thorough market research helps you explore more and different challenging opportunities that will help grow your business.

To increase the stake for your business, you need to deliver something better than promised. This will make your customers extremely happy, paving a way for your business to grow.

Measure Brand Reputation

How does a business know if the users even like the brand or not? Market research helps businesses measure its brand reputation in the market among its target audience over a period of time. It’s a great way to measure progress for your business as well as compare your status to your competitors in order to see what’s missing or exceptional.

We’re sure you have a better understanding of how important market research is before starting a business! A detailed analysis of the situation, consumer, environment and marketing trends can give you a good understanding of what is required from your business to succeed. Market research helps businesses get a good insight into all the activities that are working well in the market.

To summarize, the importance of marketing research in a business is not just limited to these factors. Start giving research marketing skills its due importance and test what works well for your business!

Looking for an end to end digital marketing of your business, give us a shot! Else, get a free audit report of your business!

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  • Natan Santos

    Very good tips, thanks for sharing your thoughts

  • :)

  • Brian Westwood

    Without a genuine business plan you cannot achieve your sales target

  • Yes, true!

  • David Blago

    It's important to conduct several tests to know what could or may not work. Many companies fail because they have a weak vision or a broad business plan that is not aligned with what they can offer

  • I agree with you! :)

  • Manuel Riesco

    Wow !! Thanks for this knowledgeable post, I love it!!

  • Thanks! :)

  • Elsa Gibbs

    Well explained

  • Thanks!

  • Shaswata Chatterjee

    It not only reduces risk factor but also costs because you will have a better insight of how much you need to spend

  • Indeed!

  • Kirill Kondrachov

    Spot on, being up to date with the latest market trends and knowing what your competitors are doing shouldn't be overlooked

  • :)

  • Billy Ray

    Fantastic post, I love it !!

  • In reply to: Billy Ray

    Thank You! :)

  • Daniel Williams

    Is it expensive to design a good business plan ??

  • Roy Martin

    In reply to: Daniel Williams

    It is unless you wanna settle with crap

  • Daniel Williams

    In reply to: Roy Martin

    Dont't want to start an argument but I am disappointed with your answer, you could have elaborated a bit further.

  • It doesn't have to be! A good business plan requires thorough market research. Know your audience, conduct a competitor analysis, develop a plan, and map its execution.

  • Simon Imre

    Good article!

  • Thank You Simon! Stay tuned for more such updates!

  • LexisNexis Research Solutions

    Market research lead the way in big data analysis, report claims. Reduce risk factors, increase sales and business revenue.

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Anuja Lath

Digital Marketing Guru

Anuja is India's #7 LinkedIn Top Voice 2017. She is the Co-founder and CEO of RedAlkemi Online Pvt. Ltd., a digital marketing agency helping clients with their end to end online presence. Anuja has 30 years of work experience as a successful entrepreneur and has co-founded several ventures since 1986. She and her team are passionate about helping SMEs achieve measurable online success for their business. Anuja holds a Bachelors degree in Advertising from the Government College of Fine Arts, Chandigarh, India.

 

   

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