Market Research – The Vital Link between Success and Failure of an Entrepreneur

Being an entrepreneur, having apt knowledge about the market is essential to give your ideas a direction and your direction a roadmap. Market research is not only a detailed and scientific process to gain a better understanding of your target customers but rather a broader concept – it provides a better understanding of existing competitors, their strategies, ongoing market trends, and effective marketing strategies. It enables an entrepreneur to analyze a potential response to his or her new product offering or service. Therefore, it is the vital link between success and failure thus its importance shouldn’t be overlooked.

For some people, market research can be an overwhelming procedure, but once they realize it as the essential building block before laying down any business foundation, tension goes away.

A company like IBM spends around $5 million every year to conduct market research. Similarly, Microsoft and Volkswagen spend nearly 13.4% and 5.2% of their revenue in market research.

Hence, there is not the only one but a multitude of reasons to describe why market research is an inevitable stage of a business. Good market research helps in:

Shedding light on your entrepreneurial journey

Market research works like a light in your direction so that you can continue your entrepreneurial journey with more confidence. It gives you a more clear direction towards your purpose, be it establishing a new business, expanding an existing one, or increasing your customer base.

Understanding your target segment

  Market research always helps in determining your customers better and having deep insights into their buying behavior, lifestyle, and habits. 

Analyzing your competitors

Keeping a check on competitors and their strategies is a crucial part, and detailed market research plays an important role here. It helps you design effective and competitive strategies that may have the potential to make your business reach heights. 

Strengthening the decision-making process

A good and authentic market research helps in making the process of decision-making process even easier and reduces ‘if-but’ circumstances. 

•    Discovering new business opportunities

Market research is not only about identifying your customers, but thorough market research helps in identifying new business opportunities.

Identifying new sales territories

A good market research helps you maintain a balance between supply and demand. It also helps identify new sales territories for future growth.

 Hence these points are not enough to describe the benefits an authentic market research provides. But we can conclude that businesses are structured around the building blocks of a good market research.