Despite its proven results, small businesses still show reluctance in investing in market research. Consulting market research services are an economical alternative.
Every business today needs market research. Large companies have dedicated research divisions that are closely aligned to other departments. Their budget often runs into millions. Research gives companies the much-needed edge in a highly competitive environment. It helps them to improve products, while streamlining their services.
Every business today needs market research. Large companies have dedicated research divisions that are closely aligned to other departments. Their budget often runs into millions. Research gives companies the much-needed edge in a highly competitive environment. It helps them to improve products, while streamlining their services.
This is also one of the weakest components of smaller businesses. They lack the resources to run a full-fledged research department. The lack of research means their products and services also lack that competitive edge. Consultation firms specialising in market research services are the best alternative in this case. The biggest hurdle for small businesses when it comes to hiring market research firms is their reluctance in investing in research. Many of them consider the returns too insubstantial for the investment it needs. Others associate it with big businesses and its ambitious drive.
But, this is rather short-sighted. As small businesses acquire the infrastructure for a quick growth, while dealing with an increasingly complex market, the need for market research has become more important than ever before. In reality the benefits of market research actually far outweigh the costs. Let us look at some of these:
Assessing the feasibility: The most common reason for small businesses’ failure is an expansion that happens too soon or a product that is rejected by the market. Interestingly most of thee failures can be avoided with timely research. Market research companies use focus groups to test ideas or products before these are launched. Similarly, when entering a new market, a research firm will check the feasibility of your product, study similar products, saturation levels, competition and the possible market share.
Understanding a new market: Cross-border expansion is now not just the domain of multi-national companies. Many small businesses are also opening shop in more than one country. For instance, a number of smaller businesses are now venturing into the expandingIndian market. However, for these foreign companies, it is hard to understand the complexities of the local market.
But, this is rather short-sighted. As small businesses acquire the infrastructure for a quick growth, while dealing with an increasingly complex market, the need for market research has become more important than ever before. In reality the benefits of market research actually far outweigh the costs. Let us look at some of these:
Assessing the feasibility: The most common reason for small businesses’ failure is an expansion that happens too soon or a product that is rejected by the market. Interestingly most of thee failures can be avoided with timely research. Market research companies use focus groups to test ideas or products before these are launched. Similarly, when entering a new market, a research firm will check the feasibility of your product, study similar products, saturation levels, competition and the possible market share.
Understanding a new market: Cross-border expansion is now not just the domain of multi-national companies. Many small businesses are also opening shop in more than one country. For instance, a number of smaller businesses are now venturing into the expandingIndian market. However, for these foreign companies, it is hard to understand the complexities of the local market.
Market research services help these foreign companies to navigate the local markets, understand the psyche of their typical buyer — their motivations, desires and aspirations. This helps in honing communication skills, product development and more. Research firms can also show a new entrant about the nitty-gritty of a new market, such as production and distribution channels, emerging markets etc.
Finding new buyers: The secret of any business expansion lies in acquiring new buyers. Often we focus on fine-tuning present strategies, trying to reach more people in the given demographic. But, market research can take us out of this little box of possibilities. When we undertake market research we do not just look at the given demographic. We also look at people who are buying products that are similar to yours.
For instance, research for a refrigeration company found the need for specialised freezers in the food retail field. The company, which till then was focusing on the domestic market, now found a virgin market with millions of potential customers.
Creating the right strategy: Any business, small or big needs a comprehensive strategy. This means collecting valuable data and information — statistics, facts and figures. What is the market share you are looking at? What are the average sales at this time and what are your projections? What are your competitor’s figures? This is covered by quantitative part of market research. But this is not all you need. You also need the whys, the reason behind the figures. This is covered by qualitative market research services. Understanding the motivation and behaviour of your market is essential when formulating your strategy.
Product innovation: The essential part of retaining a competitive edge is product innovation. Unfortunately, this is an area that smaller businesses often ignore. Business owners see this as too expensive, fearing heavy expenditure with uncertain returns.Market research services focus on market reaction to your product. Sometimes all you need is a little tweak. For instance, market research for a kids’ bicycle firm showed that children often take water bottles while cycling. By adding a simple bottle holder, the firm now offered an exclusive product.
In short, market research gives us a better understanding of our market, reduces risks, helps in creating the right strategy and developing our products.
Source - http://hubpages.com/business/Why-Small-Businesses-Need-Market-Research-Services?done
Finding new buyers: The secret of any business expansion lies in acquiring new buyers. Often we focus on fine-tuning present strategies, trying to reach more people in the given demographic. But, market research can take us out of this little box of possibilities. When we undertake market research we do not just look at the given demographic. We also look at people who are buying products that are similar to yours.
For instance, research for a refrigeration company found the need for specialised freezers in the food retail field. The company, which till then was focusing on the domestic market, now found a virgin market with millions of potential customers.
Creating the right strategy: Any business, small or big needs a comprehensive strategy. This means collecting valuable data and information — statistics, facts and figures. What is the market share you are looking at? What are the average sales at this time and what are your projections? What are your competitor’s figures? This is covered by quantitative part of market research. But this is not all you need. You also need the whys, the reason behind the figures. This is covered by qualitative market research services. Understanding the motivation and behaviour of your market is essential when formulating your strategy.
Product innovation: The essential part of retaining a competitive edge is product innovation. Unfortunately, this is an area that smaller businesses often ignore. Business owners see this as too expensive, fearing heavy expenditure with uncertain returns.Market research services focus on market reaction to your product. Sometimes all you need is a little tweak. For instance, market research for a kids’ bicycle firm showed that children often take water bottles while cycling. By adding a simple bottle holder, the firm now offered an exclusive product.
In short, market research gives us a better understanding of our market, reduces risks, helps in creating the right strategy and developing our products.
Source - http://hubpages.com/business/Why-Small-Businesses-Need-Market-Research-Services?done
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