Start-ups: Why & When to do Market Research

Start-ups: Why & When to do Market Research

Each year, thousands of start-ups get launched and each one of them entering the market has an instinct that their idea is going to transform the world by providing solution to a respective problem. However, on retrospection, things don’t actually happen as assumed in reality. Won’t it be wiser on each Start-ups part to gather reliable data before actually making an entry?

Only those start-ups that enter the market with reliable data to support their business idea actually are able to attain the next level of success. This is because the  valuable data  so collected provides a clear picture to the start up about how far the mooted idea can provide solution to the problems of consumers and will it have any takers, if at all, when launched in the market?

Deeper Understanding of the Term called “Market Research”

Before making a foray in to the market, every start-up needs to assess what is it that the market needs? At this stage, the market research comes into picture. Market research is the actual entry of a business in the market to understand the needs of the consumers.

In fact, Market Research is that business tool that provides a clear picture about what is actually available in the market and what the business plans to launch to fill the gap.

Market Research is that endeavour of data collection undertaken by a business to obtain a clear picture about the availability of a slot for it in the market along with understanding the consumer’s choice to pay for the specific product or service. Such an endeavour helps a business to make knowledgeable and informed decision.

Purpose behind Market Research by a Start-up Business

A business venture that is backed by thorough market research and data analysis has a better chance of proving its feasibility in the market. Based on a well-aided market research report that acts as a guide, a business can hope to utilize its time, effort, and money in the right direction of growth.

Market research acts a guide to a start-up business in the following ways

• Get an insight about the consumer need
• Draft an outline about the scope of prospective business
• Gain an idea about the potential consumer’s view on the solution likely to be provided by you
• Have an understanding about the market trends
• Gain an edge over competitors
• Plan in advance about how or when to place your product or service in the market
• Chart in advance the projected expenses and other financial costs to decide whether it will be viable to carry on the business at the price that the consumers are likely to pay
• Provides forewarning and distress signals to a business to take corrective actions before it becomes too late

A business can gain an edge over its competitors with the help of market research in areas such as product pricing, type of product that is likely to be launched, schemes introduced by competitors, etc and take the needed steps to position itself differently thus getting the added advantage. Market research is that key which a start-up business holds that helps it obtain the much-needed information aiding it to prioritize matter of fact and attainable goals.

Right Time to Undertake Market Research

The right time for a business venture to undertake market research is before the launch of a new business or venture. In case everything looks positive, a business can go ahead and launch its new venture.

With a few days of entering the market, a business can go for second round of market research to gain an understanding about the acceptance of its already undertaken initiative.

A business should include market research as a continuous and inbuilt plan of its business. This helps a business to gain knowledge about its market standing in the most challenging, competitive and ever changing dynamic environment. 

Way of Undertaking Market Research

As market research is nothing but collect of market information. There are two ways by which the market information can be collected. One is Primary Market Research involving conduct of informal chats with customers or taking their feedback. This is done through the conduct of interviews, surveys, focus groups, questionnaires etc. This helps to gain important information about pricing of competitors, their drawbacks, and positives.

The Secondary Market Research involves taking the help of experts to conduct detailed market research, using marketing information tools and systems or following reports on media to assess key data of previous records about consumer habits including the success rate of similar products that had been launched earlier.

The other types of market research involves qualitative and quantitative.

By garnering correct and accurate data on market research, a business venture can hope to get a perfect picture of the needs of the market.

The money, effort, and time spent on accurate market research helps a business to stay in close connection with the prevailing market condition reality. Hence, market research along with being important to a start up is also equally important to an already established business as it is an indicator of long-sighted and clever management of business. It sends the message that a business is not only serious about upgrading itself but also ready to innovate and reinvent itself as per the needs of the market thus gaining everybody’s trust and faith.

 

This content was originally published by iResearch Services Pvt. Ltd. . Visit their website at www.iresearchservices.com.