If one marketing plan goes wrong, you can always depend on another to get what you want. However, if your market research is wrong, your business could suffer irreparable damage. The significance of market research lies in the fact that it helps to create the right business model, build the right products/services and reach the right audience.
It tells you about the people you should be talking to, what they want to hear and how they could possibly interact with your product. Business experts and successful entrepreneurs always suggest to test the waters with market research and a beta program before starting any business. Pay heed to what the study says, and you could create a profitable business sooner and without significant setbacks.
How to get started with market research?
First of all, define your model audience. When you create a product, you have a certain target audience in mind. Who are these people? What do they do? What kind of products do they like? Define this primary audience and do a pain-point study. Go through qualitative vs quantitative data separately. Find out what ticks your audience. Learn what they really want in a business that isn’t being fulfilled already.
We advise you not to try market research on your own. It will be better to hire a specialized agency to conduct this task for you. This could be one of the most strategic business expenses. Find a firm that provides such services to startup businesses at affordable costs. This could help you in getting better results than scouring through Google Trends data yourself.
Once you have found the right firm, tell them your expectations about the business, the initial target audience of the product and what plans you have in mind for marketing. The firm will then gather data and define the most profitable strategies for your business, help you segment your audience based on different metrics, create marketing and advertising campaigns and build a sales funnel.
What happens if market research goes wrong?
Incorrectly or inadequately conducted market research could harm your business. Let’s understand this with the help of an example. You sell fresh salads and believe that the product will be a hit amongst women looking to lose weight. The salads are filled with proteins and are very filling as well. You start researching Google Trends and start looking for data that caters to your audience bias. You start marketing your product to teenagers and young adults in the city, and despite some initial traction, the product fails to take off.
You later realize that even though the salads are healthy and good for those looking for meal replacement ideas, it has many calories and lots of slow digesting protein which many young girls do not like. This time, you hire a market research agency, and they find out that such salads are in demand among both males and females in your city over the age of 23, who are engaged in CrossFit training or bodybuilding. You market your product there and sales skyrocket.
The time and money you wasted in the first instance could have been saved if you hired a good market research time earlier.
Don’t let this happen to your business and don’t take unnecessary chances. Build your business on the back of reliable market data to gain success.