Market Research or ‘selling ice to Eskimos’
Successful businesses worldwide periodically conduct market research in order to stay tuned to changing market trends and to retain their competitive edge. Market research is the process of collecting data to determine whether or not a particular product or service will satisfy customer’s needs. This information is essential to the success of business ventures especially those in the SME business sector.
You must have heard this adage, ‘selling ice to Eskimos’, it serves the purpose clearly here…without a market research, your business idea would also do something like this only. Market research is the important piece that helps to step back and see the big picture of how the product might fit into the marketplace. Through market research, entrepreneurs gain valuable information about industry trends, who their competitors really are, and which consumers they should target and how. Start-up entrepreneurs benefit from market research in developing, fine-tuning and enhancing their particular product or service, which ultimately leads to greater revenue through new customers.
The importance of market research can be best perceived by understanding the various factors that impact your business:
- Market Information
- Insight into Existing Customers
- Customer Needs
- Customer Behaviour Patterns
- Competitor Analysis
- Identify Business Opportunities
- Resolving Business Problems
- Accurate Business Decisions
- Develop Business Strategies
Important to note, that market research is not supposed be a once off activity, but should be continuous activity for the overall growth of the business. Therefore, if you are looking to start a new business, launch a new product or find new markets to sell your existing products or services to, doing the proper market research is essential to being successful.