Market research is everywhere. Companies, big or small require market research to survive in the market. Market research has its application in all aspects of business. Companies may not realize it, but market research is the foundation stone for any business.
In case of any business, right from its establishment, market research is in the picture. While forming any company or establishing any manufacturing unit, one must undertake market research in terms of the feasibility of the region, availability of required resources, competition, legal formalities and the overall economic condition in the market.
Market research is applicable in every aspect of decision making right from product, its type, its features, packaging, pricing, production process, target market, competitors etc. Even the decision regarding how much to produce will depend on the sales forecast for the next period i.e. week, month or even year. Inventory management is a crucial task of any company as it involves high cost and energy. Hence decisions regarding inventory management must be taken carefully.
For this purpose, market research can provide an insight into the matters pertaining to sales, demand and capacity utilization.
In case of Marketing, market research provides solutions for questions like who is my customer? Why do they buy? and why will they buy from me?
Market research answers these questions describing the target audience, their purchasing habits, their preference, price points and also the geographical location of the customers to understand the level of concentration of the customers in those areas.
This helps the Marketing department to better allocate the human resources according to the need of salesforce required to serve the area or group of customers.
In case of financial management, market research proves to be useful in fund allocation to a well performing product or service, contingency planning and planning of marketing budget based on the area in which marketing is to be done, competitions’ strategies and any other constraints.
Market research also helps in contingency planning. Data analytics aspect of market research helps to forecast the future changes in the sale, demand, economic condition, etc. due to which the companies can be better prepared to face any such unavoidable market circumstances.
Thus, market research is required in all aspects of business to take strategic decisions in order to achieve organisational goals of Turnover, profits, growth, market position and sustainability.