Why Market Research Is Absolutely Necessary For Product Development

You must’ve heard about how Mcdonald’s develops their new burgers or must’ve received a call from a company inquiring if you have heard about their product or service. Market research is the lifeline of new product development. You must think that the “crazy new billion-dollar idea” you have is great, but you don’t know how other people might react to it. This is where market research companies come into the picture. 

With research techniques and expertise, market research companies prove if a product is feasible or not. Here is what market research can help your business accomplish:

– Making safer business decisions: 

Businesses that make decisions based on facts and well-researched information tend to be stronger in the long run. As the saying goes, “Knowledge is power”. Investing a small amount, in the beginning, will have a better return rather than starting a project without doing any due diligence. Market research includes testing the market before product development, understanding consumer behavior, and helping businesses make smarter decisions. 

– Finding new business opportunities: 

Businesses that are connected to their customers will always be able to identify any new opportunity over the horizon. Many of Mcdonald’s products are often developed by researching consumer behavior towards their new products and ideas. 

– Identifying market segments: 

Market research helps businesses find out their market segments by conducting deep research regarding their products/services within the general population of the country. Identifying market segments is very important especially for startups. A well-researched report can also assist startups with raising funds by identifying the proven need of their product/service in the market and also later on running advertising specifically for their market segment, which provides the best return on the dollar spent. 

– Well-researched marketing campaigns:

Market research is the best way to have the most efficient and effective marketing campaigns since the company already has a clear idea about its targeted consumers. For example, It can help you with identifying different age ranges of the customers, so the promotional materials could be developed for different age brackets. It can also assist in identifying different perceptions consumers have about the brand, such as if the consumer views the brand as a luxury or a necessity, different types of product labels, brochures, and websites could be designed later on that fits the brand’s identity and perception. Having all the data can help create promotional materials that speak directly to the consumers. 

Competitive advantage:

Being the best in the industry is not an easy job. Market research assists companies with innovation by providing them with the insights of their market and audience, which can be leveraged later for innovation and helps companies both staying and getting ahead. 

– Predicting demand and customer needs:

It is so important for companies to keep their customers at the center of all major decisions. Businesses that are connected to their customers are often best prepared for any changes in the market, such as forecasting any drop or surge in the market regarding the company’s products or services. Businesses can prepare beforehand and use the information to either soften the blow of a negative impact or capitalize on the positive surge in the market. 

– Benchmarking:

Research conducted by PWC regarding the impact of benchmarking found that a business achieved a 69% faster growth rate and 45% better productivity compared to the companies that do not. In this case, market research could be done to measure various indicators, such as employee engagement surveys, competitor research, knowledge gaps, or potential growth areas. Benchmarking will open up new innovations which will increase the efficiency of the company. 

The best way to grow and unlock new opportunities is always through the way of innovation and staying connected to customers and that is what market research does for different companies.

Still, confused?

Speak to one of our team members at Sociale mix and find out how Market research can help your business find new growth opportunities. We assist our clients with raising investments, new product development, and identifying threats in the market.

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