- April 11, 2017
- Posted by: earlypadAdmin
- Category: Competitive research, Economics, Innovation, Market Research, Pricing Strategy, Startups
You don’t need to be a market leader to take advantage of Big Market Data. Market Research should be considered as one of the many few steps in initiating a new idea.
First of all, Market research is basically gathering information about consumer needs and preferences, either through existing resources or by directly reaching out to them. Before the product launch, a start-up must determine the market need of the product they’re offering.
Reasons Why Start-ups Require Market Research:
To identify market need:
Identifying the market need has always been a key to position your product. This knowledge allows you to align your product to audiences lifestyle. Studies have been made to understand, how a consumer spend their time, perceive information and interact with their favorite brands. No Market Need is one if the reasons why start-ups fail.
A few reasons why start-ups fail:
Prevents a poor product launch:
Market research helps you to find an untapped niche within the market.
A good example would be a cake business. You might discover that your city already has 3 major cake business. Entering the cupcake business with such steep competition might be difficult. However, you realize there’s no business providing customized cakes. By identifying an untapped niche, you can increase the reach of your business easily. Increasing product reach will consequently increase reduce the possibility of launching a Poor Product in the market.
Helps compete with competitors effectively:
Market Research can help identify the best marketing strategy which can be used by your business. You might find what platform engages your target audience and what doesn’t. Going ahead with a marketing plan can be risky of you don’t have enough insights on consumer behavior. Discovering marketing strategies through Market Research can save you from getting outcompeted.
Helps create the Business timeline for your Business Model:
Market Research helps you plan the projections and calculations of the growth of the business. Growth expectations will be high without market research. This will lead to disappointment and withdrawal from your business endeavors. Market Research will create a realistic timeline for your business. A start-up which lacks business model has high chance of not doing well
Better pricing strategy:
Depending on the need of the market, a market research will give you an idea of how many products or service you’re likely going to sell and this will help you in deciding the pricing strategy. If market research is done at the right time it can save your start-up from pricing/cost issues.
You can always test the waters with market research. It helps you understand how much your potential customers like/dislike your product or what modifications would help gain more traction. Pivot gone bad has been a probable reason why start-ups fail and concept testing plays the most noteworthy role here.
Drives Business expansion:
Be it a new product offering or revamping your brand image, market research answers these questions by evaluating new markets and helps you stay relevant for a longer time. Furthermore, a business needs to expand in a right location. As a result, a Bad Location can be one of the biggest reasons for start-ups to fail.
In conclusion, Market Research can help you discover potential customers for your business.Most of all it sets achievable targets for business growth and consequently drives sales to develop effective market strategies.
If you want us to conduct research for your new product/service, please feel free to reach out to us at firstname.lastname@example.org.