When To Consider A Market Research

Even though it is recommended to carryout market researches on a regular basis, there are some circumstances which might require an immediate market research especially when certain important decisions are at stake. Also, when you need to make certain evaluations based on sound market observations.  Below are some circumstances that might require you to perform a market research and to provide answers to questions which might delay decision making.

When the market trends are constantly shifting and changing

In our current business settings, trends can shift or even change on you in a blink of an eye. Today’s markets are characterized by constant and rapid changes. With a market research, you can pinpoint new trends and act on them immediately. When you find yourself in a market that is rapidly growing you can experience drastic shifts and changes due to increased innovations. A good example of a company that was a leader in its industry and got left behind due to changes in trends can be seen with Kodak. Kodak was slow in predicting the trends in the industry and was left behind when other players join the Camera industry. To be able to play the foot-to-foot game in your market, you must be able to predict shifts and changes in trends and the best way is through market research.

When you lack enough information to make decisions

In the business world, information is money. The right information at the right time can change your business overnight. Lack of information will normally lead to poor decision making and poor decisions can come with ridiculous price tags. Many businesses have gone bankrupt just for the lack of information and poor decision making. When you find yourself unable to make sound decisions for your business, it is an indication you are missing valuable information. Without valid and solid information of your market or industry, you will be making decisions based on assumptions and no or limited backings to support them. You should be able to see that as a “red traffic light” sign, assemble your team and run a market research to provide answers based on valid and concrete results from the market.

 When you need to take the right direction for your business.

This does not only apply for global markets but also with local businesses. In a situation where you are not really sure of the direction your business should take, it is important to, first of all, understand the market and make quality decisions based on facts. Facts from an in-depth market research will help locate the direction your business should take. Without enough information about which direction to take will only leave you on the messy streets of assumptions. In business, it is either you know with valid facts or you don’t.  Assuming a market can be really dangerous because it can lead to time wasted and capital.

When alternative solutions are being considered

The majority of the times you will find yourself with multiple solutions for your business and you may need to invest your time and money towards a solution that will address the problems you are trying to solve effectively. In most cases, you might need more information in other to perform effectively with the resources you have available. A market research can come handy to point you towards the best solutions for your problems. Without enough information, solutions can be costly and misdirected.

When you need to address complaints from your customers

A market research really helps businesses to understand their customer’s needs and address them squarely. This is very important in solving customer’s problems directly. A market research can be used to get more information on what your clients are expecting and where exactly they are not satisfied with your products or services. Businesses with “deaf ears” to customer complaints are only heading towards failure. Using a market research to communicate with your customers can even provide some valuable recommendations from your customers, which can be used to enhance customer experience and trust. Adding value consistently for your customers is the key to success and understanding your customer’s needs through market research is the best way.

When stepping in a new business environment

When your business is moving into a new market, it is very important to carry out a thorough market research for a better understanding of the market. With lack of information, your business is likely to fail in the new markets. A market research will only arm you with every information you may need to know about the new market, which can guide you to prepare a go-to-market strategy and a solid market plan. New markets can be really deceptive for businesses willing to take the adventure based on assumptions and little or no information. Again, a market research will greatly help the management team to make sound decisions.

When your business purpose and objectives are clear

Businesses with a very clear purpose and objective need to makes sure their interest can well align in a market place. A market research is always done in line with the company’s objectives.  If the outcome of the research does not meet the company’s objectives then a decision can be made easily based on the results of the research. With a clear understanding of a business’s purpose and objectives, a market research can be design to investigate the market according to the objectives and purpose of venturing a new market.  Through this way, the results can best reflect the company’s goals and objectives

Other Important considerations that may require a market research include:

When you are looking to specialize.

Certain markets may only require you to specialize in a particular niche of the market. A market research can help you identify a particular niche to direct your efforts in a specific market.  It can answer questions like what niche do you currently fill in the market? How can you specialize in the market? Can you specialize in the specific needs of the customer? One of the reasons to specialize in a certain market can be due to over competition or if you are looking to test the market before taking a full run.

When you are willing to differentiate in the market

When your main motive is to differentiate and stand out in a market in other to maintain and develop a meaningful competitive advantage in a fast-changing market place, you will need to run constant market research to have a firm understanding of the market and what it is offering. You need to know what your competition is already offering in the market, and how they operate in other to analyze their strengths and weaknesses. This will help you prepare a unique market plan for your business and to secure a competitive advantage over your competition.

When you want to segment the market

Market segmentation requires valuable information about the market in other not to fail in segmenting a market. To properly reap the benefits of a proper market segmentation, you must start with an in-depth market research. A market research will provide you with the characteristics of the market which is the key to segmenting a market. A market research will give you a clear picture of the specific market segments of which you can dominate. A well-done market research will unveil the specific or ideal customers in the market place who can highly benefit from your products and services.

When you seek positioning in the market place

It is of prime importance to understand how people or the market place perceives your product or services to know how you are positioned in the market place. You should be able to understand what the people think about your products and services in the market. If you are getting into a new market, you can gather information from the current clients of your competitors in the market. This will help you gain insight of how the market look at your products and services. You can also get insight on what the customers think of the competitors  already established in the market.

When you want to concentrate your efforts

In other to focus and concentrate on your best potential customers’ needs in the market, you will need to find out who they really are. A market research is the tool you need to “investigate” your customers and how to even better meet their needs. You will be able to understand on which areas of your business more concentration is needed. Many businesses turn to focus their attention and resources in the wrong direction until they can perform a market research which can help for rebalancing and refocusing the company in the right direction.

When Not To Consider a Market Research

Despite the fact that, for every business to succeed it is important to constantly research the market and pick up valuable information to anticipate the next moves, most often, and under certain circumstances, a market research may not be necessary. Undertaking a market research requires time and financing. These resources may be re-directed for the attainment of other important needs of the company than to take on a market research when it is not the best timing for a market study. Below are some reasons why you should not consider a market research.

When relevant secondary information is already at your disposal

A complete market research requires data from both secondary (desk research) and primary research (field study). For some cases when important secondary data is already available and at your disposal to make the necessary decisions, then there should be no need for a market research. The company can collect information from compiled sources like trade statistics for a product or country. If with such information available to the company to make decisions as they see fit, then there shouldn’t be any reason to undertake a market research. One of the reasons many companies are quick to run a market research is due to the lack of the necessary information to conclude on certain issues the company needs to address.

In situation whereby the cost of the research exceeds profitability

It can be of no importance to perform a market research when the market cannot add value to the company. It can be a very expensive project to undertake but when it is not lucrative for the company it makes no sense to engage. The cost to perform a market research in certain conditions can be very expensive for the company and the time the team will invest in researching the market could be used for other valuable projects for the company. In such situations, it is only normal to reject any proposal for a market research that will not be profitable for the company in any way.

When the purpose and objectives of the research is not clear

The very first requirement for a market research is to be able to have a perfect understanding of the purpose and objectives of the research. A market research with the lack of clarity for why the project is being undertaking or with no clear objectives is only destined to fail. The foundation of any market research must be clear on the definiteness of purpose and objectives for it to succeed. This is because, the purpose and objectives of the research is used to lay the guiding principles for the study. And the results must be able to meet the objectives of the research. Without a clear objective or purpose then the research will be limited and with no sense of direction.

Some Benefits of a Market Research When Considering to Export

Market research does not only provide information to satisfy your curiosity, but valuable information can be obtained that can guide a company’s management to take important strategic business decisions. A market research is design to reflect the potentials of a market, from the perceptual and factual points of view. Only through this way can a company check the feasibility and viability of their products development plans and business ideas in a new market environment. This implies a market research will only hold value if the management of the company can use the results to make strategic business decision. With that being said, an effective market research can be evaluated from the value it brings to the company. If the findings or conclusions exceed the cost of the research then we can conveniently say the research is successful.

Read further for the benefits a market research can bring to your business as it will be outlined in the subsequent paragraphs;

1 – Minimize the risk to do business in a new environment

Stepping in a new market comes with a huge amount of risks if you have little or no information about the market. We normally term this as a “blind venture”, which is accompanied by assumptions. Taking on a new market blindly can be disastrous if things don’t go as plan. This can be costly on the company and can even lead to a total failure in the market. Putting aside some time and resources to test the market and your objectives can help a business minimize the risks involved in getting into a new market. A market research can conclude if a market entry is not a feasible or viable venture for the company, saving the company time and capital.

2 – Identifying target export markets

A market research can enable a company to identify potential markets with factual and perceptual possibilities of success. The company’s resources and efforts can be effectively used in such markets with great prospects of development, profit, and growth. With such valuable information the company can facilitate the market entry with assurance “double sure,” they are making the right move.

3 – For Positioning

A market research gives you insight into the industry which can help for a better understanding of the market. Being informed about the industry can help greatly to strengthen a business position in the market. With knowledge of where you stand in the market, can easily provide insight to keep up the pace and prevent any means of losing the company’s position in the market.

4- An understanding of the customer

The results and conclusion of a market research can expose the target customer base in the market. The reason why it is important to know your customer in every market is for the fact that customers can differ in every market. A market research can provide information about who the customer is? What are their expectations? And how do they perceive your offerings in the market. This information can be used to meet the market needs and use recommendations for development and growth.

5 – Identify opportunities in the market

With an in-depth market research, businesses can pick out unique opportunities in the market which can guarantee success. These opportunities may stay hidden if nothing was done to test and research the market. With a market research, a company can easily come across customers who match the company’s target market characteristics. With valuable information and opportunities presenting themselves as the market is being researched, the management can easily strategize to optimize these opportunities the best way they can.

6 – For analyzing competition in the market

Markets are some times already filtrated by a company’s competition. A well done market research can provide valuable information about the competition in the market. Information like the position of your competition in the market may be known, their strengths, weaknesses, and strategies. With such information, the management may take advantage of the limitations of the competition to thrive successfully in the marketplace.

7 – Guides communication between the company and its customers

A market research that addresses the needs and expectations of the current and potential customers of a market can provide recommendations on how to initiate marketing campaigns that will speak directly to the customers in a way that will command their interest. The responses gathered from the market research can be redirected to talk to the customers directly. Without a market study, it will be difficult to hold such valuable information that can be used for marketing.

8 – Tracking progress in the market

With regular market study, a company can compare their progress in the market from previous measurements and benchmark. Business can easily measure how far they have gone in the market and what the market perceive of them. The company can be quick to realize if the market objectives are being met and what possibilities are available for them to facilitate their growth in the market. 

9 – To make validations with in-house research

A desk research from an in-house research team may come handy but more information may be required for management to conclude on specific information obtained. An in house research team may have gathered information which may need validation from primary sources base on factual evidence in a practical market environment. With data obtained from a primary market research, combined with a company in-house research data, strategic decisions can be arrived at with a sense of assurance.

10 – Identify export feasibility

In other to determine possible threats for stepping into a new market, a market research can highlight possible red flags, which must be addressed before a company can make a move in the new market. This may be important for the need to further understand the environment and any special conditions in place in the target market and for specific products. A market research can point out possible threads as well as opportunities in the market.

11 – Enhances strategic planning

As mentioned earlier, a market research does not only satisfy your curiosity but can help in strategizing a possible market entry. With the valuable information gathered from a market research, a well-designed plan of action can be prepared based on the results and conclusions of a market research. Proper planning can only be achieved based on the findings of the market research. At this stage, your strategies are evidence-based, which enhances confidence.

12 – To know what the market really wants

The same product can be used for different experience in different markets. It is important to be clear on what the market really wants and how the products or service can be refined or further developed to meet the market needs. Markets can also present different markets with different customer groups. With a comprehensive market research, the customers’ needs can be known and the products and services can be designed to meet customer’s expectation.

13 – Anticipate emerging trends

In other to stay innovative and competitive companies strive to stay ahead of where the market is going. Through this way, businesses can enjoy the first-mover advantage by simply being the first in the market and doing something no one has done before. With a complete market research, it becomes easy to anticipate the trends in the market using the recommendations from the research.

14 – Know more about the market characteristics

There is more to know about the market than just the customers and their features. With a market research, you can identify how your product competes in the market, information about how the products or services can be distributed in the market, can discover the best promotion policies for the market, information about the right pricing strategy to implement.

15 – Stay ahead of competition

Constant market research keeps a business ahead of it is competition. Businesses which are being with market information through research and studies, will leverage the findings and information for continuous innovation. Such businesses will create new trends for the industry and probably the market leader.

16 – To forecast

 A market research can be your telescope by which you can scan the market from a distance. Weight the pros and cons of the market and conclude if the venture can be profitable for the business or will be a failure. With a market research, time and resources can be effectively deployed and for the advantage of the company. As you examine the characteristics of the market, you can easily predict the future of the market.

17 – For Decision Making

An in-depth market research can provide valuable information which the management can use to make strategic decisions for the business. Failing to make the right decision for your business can lead to serious losses if the wrong moves are made. One of the most important reasons why a market research is very important is the information it brings for decision making.

18 – Places the customer at the center

A market research focuses on the customer’s needs and expectations.  By placing the customers at the center you become more observant of your customer’s requirement and through this way, you can be quick to fine-tune your offerings to the clients, improve your customer services, and come up with new ways to serve your customers more effectively.

EndNote

In a nutshell, a market research provides the opportunity for a company to appraise its success regularly and even over a period of time. With consistent research on the market, businesses can quickly scan and decide which markets will meet their interest and to develop their future potential across the global scene.

It doesn’t matter if you are a new business or a veteran in the market, if you want to keep up the ever-changing market trends and to always stay competitive, It is very important to carry out market research at least after every six months. With the information obtained from a market research, you can better understand the market, sales determinant, and ensure business growth. There is more to benefit from a market research as you will be fully informed of the market, decision making will be more effective and you can easily solve problems the market faces and establish a positive rapport with customers