Question

What are the benefits to management for conducting marketing research?

Please answer the question in a paragraph or two and in detail. Thank you!

Answer 1

Market research is a systematic, objective collection and analysis of data about your target market, competition, and/or environment and your goal should be to increase your understanding of them. Following are the benefits of market research.

Market research guides your communication with current and potential customers.

- Once you have your research results, you should have enough ammunition to formulate the most effective way to communicate to your customers. You should know what they like/don’t like to hear/see/do. Then you can tailor what you say to them to make them take action.

Market research helps you identify opportunities in the marketplace.

- Research might make it obvious that a new product you have planned may not be what your market wants or needs. You may then decide to make modifications on what you are going to offer to suit your audience.

Market research helps you minimize risks.

- Through market research, you may find all the information you need to decide whether to take action on a particular subject. For example, you may find that the particular location where you wanted to open a shop already has a saturated market in your line of business, which should make you refrain from making that decision and look for a more appropriate spot.

Market research measures your reputation.

- It’s always good to know how you measure against your competitors. Market research finds out just where you are and then, according to the results, you can take action to change perception

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