Market research is a research activity carried out in the field of marketing in the form of information gathering. This activity is carried out systematically so that it must pay attention to several steps. An entrepreneur can find out what the market and society need, as well as know who his competitors are. After knowing what the market and existing competitors need, the products and services that are made or provided can be in accordance with market desires. Here are a few things that make market research so important.
1. Reducing the Risk of Failure
This is the main advantage that you will get in terms of doing market research before starting a business. No matter what type of business you want to run, nothing is certain to be 100% successful and you will not suffer any losses. But the thing to remember is that you can reduce the risk even if you can’t avoid it. With this, you can identify failures that might arise and can try to prevent them.
2. Knowing Consumer Needs
In addition to knowing who is the target of your business product or service, through market research you can also find out where and when the product or service will be needed. Apart from that, you can also find out what qualities are needed by your target audience. Of course, all consumers want high-quality products that can last for a long time. As for service matters, consumers also want good service and no defects at all.
3. Knowing the Level of Business Competition
With this, of course, you will know the level of business competition that is around. Knowing the level of business competition can later help you in choosing a business or type of business you want to run, so that it can be a profitable opportunity for you to live and can reduce the risk of loss from business failure.
4. Knowing Market Demand
The importance of market research is also to find out information about when demand will peak and when it will decrease. You can also predict whether the trend will decrease and peak. With all this available information, of course you as an entrepreneur can determine what decisions should be made so that profits can keep coming and not suffer losses. In addition, the results of market research also influence new innovations that will be raised by an entrepreneur. This is closely related to improving the quality of a product or service.