We’ve talked a lot about what market research is, along with different ways that it’s conducted. But, once all that data is compiled, how do research firms and businesses put it to use?
Data isn’t always black and white, so it’s not always clear what the research is telling you. Plus, consumers might not even be totally clear on what they want, so that data can often come out inconsistent.
With all this in mind, the use of market research data is a complex practice. While it might seem simple (ask the customer what they want, act accordingly), things are rarely this cut and dry.
So, let’s take a look at some of the ways market research is most commonly used.
One of the most essential functions of market research is to test the waters for the viability of a new business. Without this research, a new business is going in blind. Before a business opens up shop, it’s important to understand if its target market is even interested in what it has to offer.
By working to understand the wants and needs of a given market, a new business has a much higher chance of success. Plus, it can help edge out anything that might turn customers away before it even happens.
New Products or Services
Established brands will also use market research to determine if a new product idea has any legs. It’s the same basic idea as a new business, in that the goal is to figure out whether or not the product or service will connect with consumers. If the research shows that there isn’t a market for a product, it might be time to go back to the drawing board.
Every successful business is highly aware of their competition. It’s vital to understand what similar brands do well, considering that that brand is after the same target market.
With market research, a brand can develop an understanding of how consumers feel in relation to its competition. If the data shows that consumers, in general, believe there’s a better option out there, it’s a sure indicator that it’s time for some changes.
All of these uses are tied to the idea of growth, the ultimate goal for most businesses. Without growth, a business remains stagnant, and might not reach its full potential.
A brand will use market research extensively when it is in a growth stage. This can include working to understand how to market to new customers, and how to further engage the existing ones.
Brands will not grow unless they understand how to serve the market they’re in. But, with dedicated and extensive research, the sky is the limit.