Market research is a systematic way to gather, evaluate and present it in a form that explains various facts and figures to the business. Collected information acts as a vital tool to have increments in business activities, qualitative work done and improved profits. Any company, whether small scale or large scale, can perform market research before marketing its products or services. It can also be useful when launching a new product or diversifying the business. It is useful as well when a company has to expand its business globally. It avails numerous benefits to the businesses. Major benefits are as follows.
1. Market research provides accurate information about market trends, industrial changes, consumer behavior etc. It helps to know different market opportunities present worldwide.
2. Research reports reveal uncertainties that may arise due to changes in business activities or introduction of a new product in the market. It guides companies to take decisive actions to cope with threats in niche market.
3. Internet facilitates to get free or low cost market reports online for small and medium sized business. Affordable price for doing online research work acts as benefit to all businesses.
4. Organizations can get to know about marketing strategies of rivals so that they can be prepared with innovative ideas and impressive sales targets. This way they can get competitive advantage over its competitors.
5. By knowing consumer preferences, companies can develop their products and services and take hold of huge competitive area. Moreover, companies can develop international marketing strategies to promote products worldwide.
6. Latest market research reports help companies to have in depth analysis of industry and future trends. Companies can have global perspective for their international business by studying market statistics.
7. Industry analysis helps to formulate growth strategies to increase sales and build brand image in market.
Though there numerous advantages, there also exist some problems.
1. The research work on large basis requires funds to be invested by companies. Small scale companies may not be in condition to assign large budgets just for research purpose.
2. Research reports prepared by organizations may lack somewhere due to inexperience in data collection, market analysis or absence of market intelligence to do research work.
3. There are various methods used for research which are appropriate for some searches and are not so for others. Inaccurate methodology will result in wastage of time, money and efforts.
4. Sometimes while taking interviews, consumers may not respond truly. Primary data collection will not be effective or precise if there is no real insight into exact market condition.
Besides having problems, market research serves an important purpose of business. Smart entrepreneurs use it in profitable ways and try to reduce its deficiency.
