As with all marketing activities, the strength in the result will be determined by the direction and focus of the research. Market research is a crucial part of any and all marketing plans.  

Kotler et al. (2013) define market research as ‘the systematic design, collection, analysis and, reporting of data relevant to a specific marketing situation facing an organisation’.  

Although businesses may think they know who their target market is, after some research, they are often surprised. To a small business, it may seem an unnecessary task but it may be one of the most important undertakings that can be done delivering numerous advantages. The benefits of conducting market research can include a higher level of competitiveness, reduced risks, and better- informed plans and decisions. 

There are many ways to conduct market research that are low-cost or often free. Using online surveying tools or just asking your customers both provide great places to start in terms of keeping your costs down and they don’t have to take as long as you might think either. Research often leads to a better use of resources in the future, it can also lead to improved business effectiveness. 

When considering a new business idea, market research can unearth new Trends and new markets that the business or even the wider market has perhaps not noticed before. The importance of this is that it can allow a business to focus its efforts on new trends or customers as well as their existing ones. 

A business that keeps updated to new customers, changing social trends and, advancing technology is more agile and able to adapt to shifting client requirements. It will be able to carve a niche and be relevant and therefore in demand by clients. Research can also uncover potential threats to a business that may have gone unnoticed or were not considered. 

These threats could be in the form of competition, substitute products, or new easier ways of production. Whilst they are problems, if they are identified, considered and action taken, it allows the business to be a step ahead in dealing with the problem. This increases the chances of not only survival but also continued success.

Being able to make predictions about future success or failure is hugely important for a business. By conducting market research, it’s possible to project how well the business will do based on trends and previous industry data. Forecasting future revenue assists with planning production capability, resources, and raw material requirements.  

As many as 6 out of 10 businesses do not survive their first five years. Businesses that are prepared with information about their market and their competition are in a better position to make decisions. It is much better to find out who your customers are and what they want so that the business can take the necessary steps to accommodate them and target accordingly.