8 situations when you need market research – Infographics
Market research is very widely used in business. It supports experts, managers, and entrepreneurs in making key decisions in many different areas of their companies’ operations.
Market research allows gathering in-depth knowledge of each of the three areas of the company’s environment – the market, competition, and customers. It can also provide important conclusions about the company itself, its brands, operations, strategy, products, or services.
An important feature of market research is also its practical dimension. It helps collect and verify hard market data, analyse information, and draw reliable conclusions, as well as transform the knowledge obtained into practical recommendations.
Market research is needed when you decide to develop your business
You want to know your industry, competition, and customers better
Information about what is happening on the market is vital for making every business decision – even if it concerns changes of a non-strategic but operational nature.
Which supplier to cooperate with? How to adapt logistics to customer preferences? How to choose a budget for advertising campaigns? Which innovations or tools to invest in?
You launch a new product or service on the market
Entering the market with a new offer can bring greater profits if reliable, proven market data is at the heart of product design, production, distribution, and marketing.
Which technology to use in the production process? What price will be optimal for each version of the product? Which distribution channels will be the most profitable? Which marketing channels to use?
You conduct a feasibility study for a new investment
Market research done in the format of due diligence helps to understand the overall picture of the market – including entry barriers, success factors, potential customers, key players, and market relationships.
Which market segments are the most profitable? What permits, licenses, and certificates should be obtained? What made industry leaders successful? And what led to the failure of other companies?
You enter a new domestic or foreign market with the current offer
Before deciding to expand into new markets, you need to get to know them in-depth to be able to prepare an effective business development strategy.
Is there room for a new player on the market? What are the market development forecasts for the coming years? What are the entry barriers? What are the costs of exiting the market in the event of a failure?
You want to increase sales and improve marketing effectiveness
When preparing development plans in the area of marketing and sales, it is worth reaching the most detailed information, including data about competition and customers.
Which communication channels are most often used by potential customers and how do they use them? What are your competitors’ promotional activities and advertising budgets? What does their purchasing process look like?
You work on a business plan or documentation for the investor
Knowing the current and forecasted situation in the industry, you can prepare more convincing calculations and business plans, and it will be easier to convince investors of your idea.
What is the current size and value of the market? How will the market develop in the coming years? How will consumer preferences and needs change? Which global trends will dominate the local market?
You create an application for a grant or a subsidy
In the process of obtaining, implementing, and accounting for grants and subsidies, it is essential to use hard data from, among others, market research and competitive analysis.
How to prove that the project will bring profits? What estimates of market development to use? What does the competitive environment look like now? And what changes can be expected in the future?
Market research is essential at every stage of a company, brand, and product development
Market research brings measurable benefits to enterprises at every stage of the company, brand, and product life cycle. It helps to assess the chance of success in relation to, among others, a new concept, an innovative offer or a recently discovered market niche. It provides the hard data that is needed to design a development strategy, such as sales and marketing or a new market entry strategy. It helps to prove to investors and institutions offering subsidies and grants that a given idea will generate profit. It enables you to increase the efficiency of your day-to-day operations by identifying barriers to growth, success factors, new markets, or customer segments.
Let’s talk about how market research can help your business to grow!