7 Reasons Why You Need Market Research

Conducting market research on a regular basis is more important than ever if businesses want to keep up with current market trends and maintain their competitive edge. Because today’s market trends are constantly shifting and changing.

Whether you are starting a new business or expanding, conducting market research is imperative to understanding your target market, increasing sales, and spearheading business growth.

1. Identify potential new customers

In order to identify potential new customers, you first must understand who your customers are as well as key demographics.

When looking at your product or service, it’s important to consider questions, such as:

  • Who will use your product or service?
  • What is the age range of your customers?
  • Are they predominantly male or female?
  • What is their income level, marital status, and geographical location?

Understanding these factors will enable you to target customers effectively.

2. Understand your existing customers by market research

Similar to the above point, businesses should also take the time to understand who their existing customers are.
Here are some questions to ask:

  • Why do your customers choose your products over your competition?
  • How do your customers use your products?
  • How do your products solve a challenge?
  • Who or what influences their purchase decisions?
  • What do your customers enjoy doing, watching, and reading?

Understanding how your existing customers use your products as well as what challenges your products solve will help businesses improve their products as well as identify upsell opportunities with existing customers.

3. Set realistic targets for your business

Now that you are armed with information about your target customers and existing customers, you can then use this data to set achievable and realistic goals for continuous improvement as well as business growth.

4. Develop new, effective strategies by understanding your market

Based on your market research results, you can make more informed decisions regarding the pricing, distribution channels, marketing mediums, or to identify opportunities to introduce a new product or service.

These results will also help you to make more informed decisions about your existing operations and activities.

  • Should you expand or reduce?
  • Is there room in your current operations to diversify?
  • Are you targeting the right audience with your marketing activities

5. Solve your biggest business challenges

If you have already identified a problem in your business, conducting market research will help you determine the source of the issue. For example, by conducting market research, you can determine if a new competitor has entered the market or if brand awareness has fallen short, causing a decrease in sales.

6. Prepare for possible business expansion by getting the right data

Market research helps you identify areas for possible business expansion. It offers the opportunity to test the market to determine if there is room for a new product or service. You can also conduct market research to find the best location to open a new store.

7. Identify new business opportunities by identifying gaps in the offer

Conducting market research may help you discover new markets that are under-serviced or demand service. You may also identify changing market trends due to new housing construction, increased levels of education, or other changes that will bring new opportunities for your business.

All in all, market research isn’t just for new startup businesses. Businesses of all shapes, sizes, scope, industry and experience levels can benefit from market research. Market research can help businesses learn about new and existing customers, identify issues and solve problems, and even help explore new opportunities that pave the way for business growth.

If you need help for Market Research in Cambodia, contact us: vuthy@mrtsconsulting.com 

Related Posts