No matter what kind of business you are running, there are always some risks involved in its operation. Accurate marketing research may not reduce 100 percent risk factors, but it can undoubtedly mitigate such factors to a great extent. Marketing research is your ultimate key to success in the business field. Not doing market research means missing vital information that can otherwise prove value for making the right business decision.
Knowledge is Power in the Business World. If you have an efficient market intelligence system, you can keep tabs on the latest market trends, make changes and improvements in your business, and make full-fledged market fledge plans.
On the other hand, taking an important business decision without marketing research is throwing spaghetti on the wall and seeing whatever sticks. This try and test approach is a wrong business formula as it will cost you money and time.
Today, in this post, I will tell you how market research will let you reduce different kinds of marketing risks.
Doing no market research means gambling in the business world, and indeed, your business won't stand long in the market if you don't know care about the latest market trends. Whether you are planning to introduce a new product or target a new market, research can deliver valuable information based on which you can make a good business decision.
On the flip side, when you do not hire experts to do market research, you might save money first (aka the cost of market research). However, later when your product fails or cannot get a good response from the new market after making all investments, you realize that all your investment has gone down the drain.
Whether you are planning to enter a new market with a new product or better ones, you must have to do target market research. The purpose of this research is to explore different segments in the market. If a particular market segment is loyal to your competitors' product offering, you can tap into other markets where you can find better sales volume.
On the other side, you enter the market and do not care about segments. In the very first month of this launch, you would start noticing that the segment is unresponsive to your business offers. Why is that? It is because the brand loyalty of that segment is something you cannot break easily. It is the classic point of business failure due to a lack of market research.
You did not do market research and could not understand the risk related to a market segment. If you have done it, you could instantly avoid such dangers by tapping on a market segment that responds well to your offers and services.
Launching a new product is a big decision that you should not take without market research.
You have a product in hand, and you know a little about the target market. You are over-optimistic about your business product launch as you know that a similar product is doing great business. You are offering something trendy.
An Example- Here, you should not forget a classic product failure example of Pepsi when the company launched Crystal Pepsi in the mid-1990s as the trend of crystal beverages was skyrocketing. This product failed as it confused people more instead of creating interest. They were familiar with clear brown Pepsi, so they kept asking whether it is Lime or water. At that point, this beverage company didn't do proper research on customers' feedback, and therefore they lost all its investment.
If you launch a product by doing proper market research, you can get to know your customer. You know how they will respond to your product and what would be the sale volume. Experts of market intelligence help you identify your micro-segment and product niche. Through this research, you will know what customers will like and dislike. It would be best if you did this research before finalizing your product. The study can pinpoint crucial information such as possible changes and improvements a company can do to better sales volume and customer response.
An-Example- Wayfair launched an application that allowed customers to take pictures of something they like. The best part is customers can not only like a particular product but also find its related or similar one in the Wayfair catalog. Through this application, the company engages its customers, meets their needs, and demands, and on top of all, keeps an eye on the latest trends that can work for its bottom-line.
Want to start a new business? Having an idea and capital isn't enough. You must have to rely on market intelligence because it will reduce the risk of startup failure. At this point, you will do competitor analysis alongside primary and secondary research to predict sale volume and possible opportunities you can avail of in the given market.
Is your business stagnant? Do not know why sales volume does not grow? It is the time to do market research to know what changes you can do and what new markets are out there. You can avoid the risk of stagnant business by gathering vital information and making the right decision for future growth and development. If you do not care about market research, you will not see any uptick in your growth bar.
"Marketing without marketing research is like driving with your eyes closed." EE – DAN ZARELLA The best marketing campaign is the one that considers every single factor of the market. You must need the best marketing plan to get more sales volume and customers' attention. A strategy that isn't based on accurate information will bring zero sales volume results, and that's not what you want. Every marketing campaign requires money, so it is vital to do market research to understand your customers' needs, wants, and demands and then try to get their attention based on their interest. However, the lack of such information will increase the risk of marketing plan failure, resulting in business loss.
A well-defined marketing campaign considers every element of the market, such as it would: Identify risks involved in the process – What customers do not like to hear during marketing campaigns. Pinpoint golden opportunities – What are untapped market segments Bring into Light Your strength- Special features of your product that competitors aren't offering. Highlight Weakness- You product missing something people need and how to hide this weakness In simple words, you can develop the best-in-class marketing plan and reduce the risk of failure on marketing ends when you make the most of market intelligence.
I shared only a few and the most common business risks that you can reduce only through effective and accurate business research. Do not rely solely on a single source of information. Use multiple resources or hire experts from the DE RISC group as they can provide you a 360-degree overview of the market and its related factors. Highly skilled market intelligent officers of this company deliver accurate information that mitigates business risk factors while boost business leads.