Role of Market Research

Customer Feedback

Doing market research to gain customer feedback can give your business key insights into your strengths and weaknesses. Once you know what customers think of your business, you can position your current marketing and messaging to highlight your strengths while you work to improve your weaknesses. Listening to your current customers can also help you respond and react to trends. If there are certain trends in your user’s industries, you’ll be able to find out through talking to your customers. Then you can start adapting to trends in your content and marketing, instead of catching up with them.

Competitor Analysis

Competitive analysis has an important role in market research. It is a strategy where you identify major competitors and research their products, sales, and marketing strategies. By doing this, you can create solid business strategies that improve upon your competitors. When you investigate your competition, you use market research techniques and concepts to understand what your competition is doing today and gain insight into their plans for tomorrow. Competitive analysis can mean the difference between success and being blindsided by a competitive move you didn’t see coming. While you may operate in a crowded market, focus on the top 3 and you’ll have enough information to not worry about the smaller players. It is a strategy where you identify major competitors and research their products, sales, and marketing strategies. By doing this, you can create solid business strategies that improve upon your competitors.

Identify Trends In The Market

Identifying a trend is a method to analyze the statistical data and recorded market behavior over a defined period and generate valuable insights using this data for strategizing and forecasting future business plans. It helps to identify the dominant traits of the market and the consumers associated with it. It helps to understand and obtain greater insights on how the market is reacting, what are the primary preference of the consumers and what are strategies an organization would need to induce.

Ideas For New Product Development

Marketing research plays a key role in enabling product development. Before any prototypes are even sketched out, marketers and analysts study the market to establish a target audience, a purpose for the product, and what problems it would solve. A deep-dive competitive analysis is always fruitful. Competitive insights can flag opportunities for improvement to existing products and help the team create something more desirable for the market. It evaluates the potential longevity of a product. Forecasting the life cycle of a product will enable the business to adapt to change accordingly and often, and prevent the business from being significantly impacted by market shifts. Through proven methodologies, marketing research teams can articulate what the customer may say, think, and respond concerning the product.

Meeting Consumer Needs

Simply put, market research is the process of analyzing data about a market, product, or service. And the most obvious benefit is its ability to help you understand your customer. Who are they? What do they want? What do they expect? Through efficient research, businesses can establish an open-ended line of communication with their customers. Once you understand your customer’s needs, you will be able to tailor your business to meet them. Research is the most effective way to test out ideas before you decide to go full-throttle with them. If you don’t know your customers you will not retain them leaving you constantly chasing after new ones.

The Aid of Pricing Strategies

Pricing strategy in marketing is the pursuit of identifying the optimum price for a product. This strategy is combined with the other marketing principles known as the four P's (product, place, price, and promotion), market demand, product characteristics, competition, and economic patterns. The pricing strategy tends to be one of the more critical components of the marketing mix and is focused on generating revenue and ultimately profit for the company. The success in pricing strategies for businesses is heightened with clarity on market conditions, an understanding of the consumer's unmet desire, and the amount they are willing to pay to fulfill it.