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 …show more content…
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 …show more content…
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