Importance of Investing In Market Research.

13. Importance of Investing In Market Research.- Top 10 Best Enterprise Software Startups In 2021

Importance of Investing In Market Research

Generally, companies deal with a lot of things like new products, innovation, cash flow, revenue, etc. Whether the company is small, medium, or big, these are some routine tasks that they maintain in order to keep up the pace. But market research plays a pivotal role in accelerating companies’ growth. Market research stands as the base of innovation, new product launches, and more. Henceforth, contributing a good amount of money to conduct market research every now and then is very important.

What is a market research and why is it important?

Market research is the task of determining the status of a new service or product by directly connecting with consumers. It allows a company to reach out to people to discover the target market and get opinions and other feedback from them about their interest in the product. Besides, market research also provides detailed insights into the competitors, understand customers’ pain points and preferences, latest market trends, consumer buying patterns, economic shifts, and demographics. This type of research is conducted in-house, by the company itself, or by a third party. Mostly, companies undertake the task to get the first-hand experience of research and market scenarios. Businesses use this information to design better products, improve user experience, and craft a marketing strategy that attracts quality leads and improves conversion rates. Some of the most common types of market research are,

  • Brand research
  • Campaign effectiveness
  • Competitor research
  • Consumer research
  • Customer segmentation research
  • Product development
  • Usability testing

The economy doesn’t go in a straight line. Henceforth, it is always a safe motive to have apt knowledge about the concerns and preferences of every important hold. Even though companies always have a general view of consumers, market research stands as an ice breaker in a company’s progress. The market research gives you answers for ‘why’ instead of general ‘what’ questions. We often use technologies like big data analytics to find answers for ‘what’ questions, but implying market research, provides an insight into why they do what they do. Remarkably, market research beats assumptions and provides exact solutions for everything. It

also helps companies expand their bases to different geographical locations by making them aware of the cultural and language variations.

How much a company should contribute to market research?

The secret behind contributing big funding for market research is cash flow. Companies that generate lots of free cash flow can be good at investments in concerning sectors like market research. However, the amount that companies contribute to market research depends on multiple things. Generally, companies divide funds over quantitative and qualitative research. In 2015, the total amount spent by companies on market research was US$68 billion worldwide. Consumer non-durable industry stood at first on the list by spending US$68 billion worldwide. It is followed by media and entertainment (15%) and pharmaceutical (13%). Some of the companies that carry out the best market research are as follows.

  • Ipsos: Ipsos Group S.A is the third-largest market research firm in the world. Founded in 1975, the company believes that its clients need more than a data supplier. Ipsos makes sure that the company works in partnership with its customers and produces accurate and relevant information and turns it into actionable truth.
  • Bauman research and consulting: Bauman Research & Consulting expertly designs and executes research for the brand, marketing, and business decisions. It is a full-service consulting firm that provides a range of qualitative, quantitative, and hybrid, and strategic solutions utilizing the most up-to-date market research methodologies.
  • Gartner: Gartner equips executives across the enterprise to make the right decisions and stay ahead of change. Founded in 1979, the company is in leading research and advisory. Gartner has expanded well beyond its flagship technology research to provide senior leaders across the enterprise with indispensable business insights.

*This interview is covered by Swiftnlift Business Magazine

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