Why is Marketing Research Important for Business Success?

Are you looking to launch a new product or service? In today’s era, the emergence of competition made it necessary for entrepreneurs to gain more in-depth knowledge of consumer behavior; and the market dynamics affecting their preferences. That will significantly impact your business decisions and enable you to stay ahead of the rivalry.

With a desire to promote a product or service and gain a competitive edge, marketing research is a requisite for business success for Baby Boomer entrepreneurs.

“Marketing without data is like driving with your eyes closed.” – Dan Zarrella

Marketing research, therefore, needs to be an essential part of your business. It is a blueprint for your success.

This article will highlight three key benefits of marketing research to help you understand why it is vital.

What is Market Research?

It is “the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face,” according to research 

Marketing research, as you can see, is critical to your business. Evidence reveals that Starbucks “expertly employs market research to keep its offerings and marketing messaging in line with consumer sentiment. The company also takes advantage of social listening, which involves monitoring digital platforms such as Facebook, Instagram, Twitter, and Reddit to find out what customers are saying about the brand and collect feedback that could help the brand improve.” 

Three Key Benefits of Marketing Research

1. Marketing research  identifies and collects vital information on consumers’ habits, pain points, and buying patterns

That data will help you understand the needs of your customers. In essence, it will allow you to refine or create your products or services with the right features to satisfy their emotional impulses; meeting their needs. Consequently, this will build deeper consumer relationships with your brand and, over time, customer loyalty.

2. Marketing research provides you with detailed insights about your competitors

Having knowledge of the market and understanding the competitive landscape will allow you to distinguish your brand and master your niche. It is crucial to be able to recognize your brand’s strengths and weaknesses so that you can capitalize on the opportunities to compete with your rivals while avoiding the pitfalls. Compared to your competitors, being able to track how customers view your goods or services is key to the success of your marketing efforts.

3. Marketing research  attracts more customers

With the ability to determine who your target audience is and where they can be found, you can develop the right message at the right time, at the right place, and at the right price for a particular product or service. New and enhanced approaches can be introduced that will contribute to customer satisfaction. This can eventually trigger a viral effect in referrals to your brand’s website; cascading into your business and potentially attracting a large customer base.

Conclusion

Fundamentally, marketing research enables you to monitor your business performance and build brand value among your rivalry. It should be an important component of your business strategy that provides you with relevant data so that you can analyze the market and your competitors; identify problems for you to avoid; and refine your strategies to build a deeper connection with your customers, brand loyalty, and business success.

Now that you understand the importance of marketing research,  let’s take a look at how you can analyze your data.

Please let me know your thoughts and share your feedback. I’d love to hear from you.