Companies constantly launch new products or services after market research, because this kind of activity is a tactic to renew its validity in the market. However, before committing to this strategy, you should ensure that new items will be well accepted by customers.To understand their customers, companies often use market research, consisting of three elements: competition, consumer and strategy; which serve to determine the viability of a product before making them available to customers.Such studies provide insight into accurate data on numbers and percentages of sales between certain types of consumers or areas where data favours the process of planning a more accepted marketing strategy.Conducting personal interviews via online or phone calls will let you know the opinion of prospective consumers and who are the main source of feedback. This is because they express the acceptance or rejection of the product, and the places where you will have greater penetration.Market research also helps a company to learn about the areas of sales, production and distribution; in this way you will know what the most profitable markets are and which need further attention.Always remember to use your market research to complement your sales strategy that fits your needs in the market.The information obtained through scientific market research is usually reliable and should be used as a guide for developing business strategies.
Market research is a guide to communicating with customers and prospects
If you make good research, the results will help you design an effective marketing campaign, giving to potential consumers the information with which they are interested.
The research will help identify market opportunities
For example, if you plan to start a business in a certain geographic location and discover that there is little competition there, then you already identified an opportunity. Opportunities for success increase if the region in which you plan to do business is highly populated and residents have the characteristics of the selected group.
Market research minimizes risk
If instead of identifying market opportunities, the results of the investigation indicate that you should not continue with the plan of action, then it's time to make adjustments. For example, if the findings show that the market is saturated with the type of service or product you plan to offer, then you know that it might be better to move to another location.
Market research identifies future problems
Through research you may discover, for example, that in the place where you want to establish your business, the council plans to build an bypass or an alternate route in order to relieve traffic congestion. You have identified a possible problem!
Market research helps you evaluate the results of your efforts
With research you can determine whether you have achieved the goals and objectives you set out to start the business.Demographics: This is specific information about a population. It includes:
- age
- sex
- approximate income
- academic preparation
- marital status
- family composition
- nationality
- residential zone
Demographic data is based on findings from the national census, government agencies and private companies engaged in collecting such information.Psychological data: The data collected information is in the consumer's mind:
- attitudes
- lifestyles
- interests
- values
- culture
By obtaining this information, we will either determine what factors motivate the consumer to buy your product or service, identify any willingness by consumers for cultural or environmental reasons, and meet consumer preferences.Obtaining demographic and psychological data save time and money for the company. The information used will help to delineate the profile of our client.If you found this article interesting you can read more on our blog here.
