Does Market Research Work?

I know it is a silly question. Everyone knows how important Research is in a business but, recently when I met few Entrepreneurs and passionate students who wanted to be entrepreneurs were saying, “you don’t need market research at all to start a business and ignoring it is fine”.  

I don’t know what made such passionate people say “Ignoring Market research is fine” that too in this pandemic situation. But one thing I can say after hearing their complete discussion is, at one point in time they will realise their mistake of not focusing on market research. All their passion and zeal would be directionless. 

Some might wonder, “I have skills, I know what to do, and I know who my audience are, I can succeed. I don’t know why I need market research?”

Well, let me clear the doubts by first describing “What is Market Research?”

What is Market Research?

The process of gathering, analyzing, and interpreting information about a market, a product or a service to be offered for sale in that market, and about the past, present, and potential customers for the product or service. Market research focuses on the characteristics, spending habits, location, and needs of your business’s target market, the industry as whole, and the particular competitors you face. 

It provides you with relevant data to help solve marketing challenges that a business will be most likely to face. In fact, strategies such as market segmentation and product differentiation are impossible to develop without market research.

Market research involves two types of Data,

    1. Primary - You compile yourself or hire someone to gather the Data for you

    2. Secondary - In this the data is readily available (research is already compiled and organised)

Types of Market Research can you do

Depending on what you want you can decide what type of research you can do, like,

    - Brand Research

    - Campaign Effectiveness

    - Competitor Research

    - Consumer Research

    - Customer Segmentation Research

    - Product Development

    - Usability testing

Market Research Process:

    + Define objectives  

    + Determine Research Design

    + Design and Prepare Research Instrument

    + Sampling and Data Collection

    + Analyse Data

    + Visualise and Communicate Result

I hope you understood what market research is, not let us get into the important question "Does Market Research work?"

Does Market Research Work?

YES, absolutely. There are enough proofs out there that speak of success and how an organisation managed to create an edge over the other because of market research and its findings. The organisations knew, "you need to really understand your customers, your market, and your competitors before taking decisions."

Keep in mind, Market Research can significantly help your marketing strategy as it helps to provide key insights and information to the business. It can provide a deeper understanding on your customer and competitors. Research will help to understand who is buying your product or service, who is not buying your product or service, what motivates them, and whether they are loyal to your brand – ultimately leading to increased sales over time. Similarly understanding the wider market environment can help identify new opportunities for your business. As the market changes its important to continue to research and understand ways you can improve on your offering based on the changing consumer preferences or market dynamics.

Basically, with the help of Market Research you will find all the answers related to “What”, “Where”, “Who”, “Why”, and “How” related to your business, your target market and the industry. 

Note: 

• Research is essential to starting a business, and you may need to continually invest in your own knowledge as you run and grow your business. Successful business owners understand this and put their knowledge into practice and continually learn from research.
• Data can be construed differently by different people. What’s unchallengeable is that there is a now a technological advancement to collecting and analysing data. Social media plays a vital role in gathering sentiments; there is an advancement in psychological, economic, and scientific knowledge in data collection. These factors have led to market research evolution, and 2021 will see a marked shift in collecting transactional data. 
• As we look ahead to next year’s trends and predictions, one thing is certain, the pandemic has had a significant impact on all businesses, including market research. Market researchers need to expect budget cuts and must adapt to continue to prove our value. Digital and virtual offerings, automation and AI adoption, specialization and agility will all play a huge role in the year to come. The most important thing a market researcher can do now is to accept the change and look for ways to meet the moment.