5 Importance of Market Research in Business
“Dreams without research are good only while sleeping.”
It’s always better to know the depth of water before stepping in. This line is completely justified when it comes to business. Before starting up your own venture or even making an investment scrutinization is the most important thing.
Market Segmentation :
Short Introduction of Market Segmentation : What is Market Segmentation?
The segmentation of the overall market as well as the derived target markets are the basis for determining any particular marketing mix.
Market segmentation is necessary because in most cases buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment.
Definition:
Market segmentation is the segmentation of customer markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Ideally, relevant differences between buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix.
A true story:
A person very keen with cars once decided to start a business in OLA (A car rental business). Going by the golden words of the advertisements he made an investment of almost 2 lac, did all the documentations spent a lot of money and energy.
https://www.olacabs.com/
Finally when everything was ready to go, he met the obstacles. The issue was that drivers are not ready to work for ola cars. He tried and tried to get a cabbie but all in vain. Finally after lot of prayers, he got a driver.
Now happy and merry he started the venture with high hopes. Little did he know, all that was waiting for him was disappointment. The driver was very lethargic and unfaithful, now rather than profit he started going in loss. Finally with a broken heart he called quits.
Now I guess you got my point quite clear. If the guy would have done a proper research he could have saved himself from letting go 2 lakh rupees.
Are you still skeptical about spending a fortune on market research? Here I present you 5 key benefits that will surely change your mind.
5 Benefits of Market Research:
1. Knowing the True Value.
Whether you are a buyer or seller knowing the true market value is always beneficial. Being a seller if you quote high, you will lose business; if you quote low, you will lose profit.
And if you are a buyer then apparently you might end up spending huge amount for mere things. A thorough research will give you the idea of the existing prices and will help you in your pursuit.
2. Identifying Potholes.
This is very important for any kind of new venture. Like a small nail is enough to kill a person if hit at the right place, a small issue is enough to drown a full-fledged business. It’s always better to be prepared for all the small and big troubles that you may cross path with.
3. Staying Real
Market research gives you a true insight of the things going on, thus helping you stay close to reality. The research is very important for budgeting and thus making assessments for investing. A business does take time to grow and flourish. Though not profit but make sure you are not incurring on loses either.
4. Don’t Miss Opportunities.
Good market research introduces you to a sea of opportunities available for you to grow. Market research is a constant effort that one needs to make for higher growth rate. Market research companies inform you about the latest trends and you can be at par with these trends.
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5. Gaining Confidence.
Equipped with the right knowledge your confidence is bound to increase. And trust me when I say confidence sells. There are many instances where a confident person with fewer calibers came out as a winner.
All said and done now it’s time for action. Grab the pen and paper and set out on your hunt. Hunt down the opportunities, shoot your arrows on the obstacles, move ahead in pride and finally the throne will be yours.