For companies which are about to bring a new product to market or are in the planning stages, market research is vital for getting the tone, style and functionality right so that once the product is launched, customers buy it. Without a subjective view from third parties, the development of good and services would be likely to miss the intended mark.
Market research is also used to give interesting facts for the media to use. If there are third-party reviews on the TV, radio and Internet, the chances of it helping people choose to buy the product or service is high. With statistical evidence from market research, the media can extract their own views, stories and facts about the product or service, which in-turn helps build brand awareness and loyalty. For example, let’s say a broadband supplier brings out a new Internet connection that is 37% faster, 50% more reliable than the closest competitor and 20% cheaper than before, and preferred by 95% of the existing customers (from the targeted market research), then there is a higher chance of these facts helping potential customers to choose the service rather than the competition.
These days, people don’t just go blind when handing over large sums of cash and that’s why they will search around for facts, figures and opinions on the product or service that is in question. With more details, statistics and impartial answers, they are more likely to make a decision and this is why manufacturers and companies will perform effective market research in the development of goods and services to be used in advertising campaigns.
Without market research, the new product might hit the shelves and be a total flop. No sales, no one choosing it and it only takes large unsuccessful advertising campaigns to make a business go under. For a company to launch a product without testing the market or seeing what data comes back from samples or giving away freebies in return for opinions from trusted testers is very dangerous and a waste of time, effort and money.
After a company has collected the data from the market research (according to strict standards set by organisations such as the Market Research Society) they need to analyse it and interpret it so that they can prepare a report to see what sales are generally going to be like. By projecting sales, they can determine how much stock or parts to order, where to aim the advertising campaigns and be able to give interesting facts for the media to run with and inadvertently sell the product or service on the company’s behalf.
Whether a company is exploring new markets, testing existing customers of previous products or just checking on what brands, products and services the market uses right now, it can help bring an overall idea of what the market wants and what the company should aim at creating. Without market research for the development of goods and services, there is little evidence to suggest that it will work and be wanted by the public. Regular research is also needed as what the market wants one year does not exactly reflect what is correct the year after.