Market research is a crucial part of all business and marketing plans. Market research is ‘the systematic collection, design, analysis, and reporting of data relevant to a specific marketing situation facing an organisation.’
According to statistics; in 2019, the global revenue of the market research industry exceeded 73.4 billion U.S. dollars, growing more than twofold since 2008. In 2018, North America generated the largest share of market research revenue, representing 54% of the total, followed by Europe with 26%.
Though businesses may think they know who their target market is, they are frequently surprised after some research. It may seem a pointless task to a small business, but it might be one of the most important undertakings that can be done delivering numerous advantages. The benefits of conducting market research, detailed below, result in higher competitiveness, reduced risks, and better-informed plans and decisions. Here are eight benefits for conducting a market research study for your business:
Any business, whether small or large, should be aiming to reduce its risks where possible. This makes it essential to know who your target market is and what their expectations are. Having this vital information can mean that money is saved by not targeting inappropriate recipients. Alternatively, you can make effective and efficient use of your resources by gaining new customers and retaining them from your actual target market.
Helps Create Plans
Doing research and finding out about your target market and their behaviors allows for creating a focused, comprehensive marketing plan. A marketing plan outlines your overall objective and should detail how you’re going to get there. Your research will provide a foundation for this plan. It can take a business where it wants to be, whether this is having more sales, customers, entering new markets, leveraging higher profits, or gaining a better reputation.
Research can uncover potential threats to a business that may have gone unnoticed or were not considered. These fears could be in the form of competition, substitute products, or new, easier ways of production.
Increases Chances of Survival
The last thing that a business wants to do is NOT survive. It’s the one goal that’s consistent across all forms of enterprise, but sadly, many businesses do not survive after their first year. Six out of ten businesses do not survive their first five years. This may be because they do not know their market wants and needs, and therefore their marketing activity has been wasted.
Making Well Informed Decisions
Businesses prepared with information about their market and their competition are in a better position to make decisions. If research has been done, the results can point one way or another when there is a choice to be made. Without research, a business risks making the wrong decision or possibly not being in a position to have that choice. With research, the risks of specific business outcomes can be exposed, resulting in higher profitability and performance.
Understanding the Competition
A business’s competition can quickly overtake them if they aren’t careful and do not pay attention to competitor’s actions. However, if the business were to monitor what their competitors are doing, they can counter them more effectively. This will reduce any loss of market share and turnover. Research can also show what’s famous about a business’s competitors and what isn’t popular to know what is needed to be done and what to avoid, resulting in a more prevalent and efficient business.
Research may sometimes reveal new areas or upcoming trends that have not yet been observed. This is principally important because if the business had not done the research, they will most likely have missed out on the opportunity or would not be prepared for it. It is much better to be prepared for these instances and move quickly to benefit from the first-mover advantage.
Once You Start, You’ll See its Value
With market research, it isn’t easy to see its value before you’ve completed it. Nevertheless, once you have done some and gained feedback of the insight, it’ll be much easier to continue the research. Your results will unavoidably get more detailed and valuable as you do more and more. You’ll also gain more experience at managing the process to become cheaper and less time-consuming. It is essential to not give up during the process as the knowledge you will gain will become very valuable to your business, and you’ll end up with large sets of detailed data. Whether it’s consumer behavior, competitor’s actions, or your reputation, it’s an asset that will serve you well.
Ready to start a new business in the UAE? Don’t forget to speak to us
Starting a brand-new business in the UAE after the pandemic is a great idea and offers immense potential to succeed. However, good market research is the foundation of every business, and unless you are ready to pandemic-proof it, you may find it challenging to sustain. If you are a new business owner, reaching out for market research companies in UAE can be a great way to guide you and take you smoothly through the milestones.
Here’s where Centurion Consulting LLC experts can help — we work as market research consultants in the UAE and provide end-to-end business consulting services. Our team of experts offers a range of services including Market Research, Business Plans, Feasibility studies, Regulatory compliances, Company structure and more. Eager to know how a business consultant can help you start a new business in the post COVID world, schedule a 45 min free online or offline call with our experts right away.