Conducting market research regularly is imperative for every small business to keep up with the moving market trends and to ensure that the business maintains its competitive advantage.
Whether you are starting up a new business or expanding an already existing one, conducting market research is very important to understand your target market as well as for increasing your sales.
Here are eight reasons why you should conduct your own market research
- To identify potential new customers
A good market research can clear uncertainties on potential new customer identification such as ages, gender, location, and LSM.
- To understand your existing customers
An advanced market research can offer a significant depth of requirements by customers. It can help answer questions such as: Why do your customers choose your products or services instead of your competitors? What makes your products or services special or stand out? Who or what influences what they buy? What do your customers or services enjoy doing, watching, and reading? After all that has been figured out, much more developed and customized products or services can be shaped for their target customers.
- To set achievable targets for your business
With the information you have gathered you will be able to set achievable and realistic goals for vital business areas like growth, sales and also when it comes to introducing new products and services to your customers.
- To give you a competitive advantage over your competitors
This gives you a significant competitive advantage because you now know what you didn’t know before, and your competitors remain in the dark. Market research can also be used to get information about your competitors where you can identify their strengths and weaknesses and gain clues about their future strategies. This will keep you steps ahead of the competition.
- To develop new, effective strategies
Based on the results from your market research you can make informed marketing decisions regarding the pricing of your products and services, the distribution, which marketing strategies and channels to use or if you should develop a new product or introduce a new service.
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