Market Research is one of the most used marketing jargons among start-ups and, sadly, the least used phenomenon. Start-ups use this phrase loosely right from the idea stage and continue to do so forever but very few companies have understood its importance and tapped into its true potential to direct their growth northwards.
Importance of Market Research For Startup Businesses
It is a technique of research analysis carried out in the form of surveys, interviews, questionnaires and focus groups to understand the market, target audience, the need for the business idea/product in the market and its sustenance. But it is often misunderstood as the endless contemplations and discussions between entrepreneurs and their friends/peers before starting a new venture.
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Idea Validation: When the seed of an idea starts growing in an aspirational entrepreneur’s mind, it is a natural tendency for them to discuss its credibility with their friends, peers, family, and mentors. And most of the times, entrepreneurs jump into the start-up arena purely on the conclusions drawn out of these discussions and out of sheer enthusiasm to begin their business journey.
When they do so, they end up hitting a wall soon as they discover that neither was their idea as original as they thought it to be nor was its need felt in the market. Hence, before starting a new venture, it is very important to carry out objective market research to figure out its originality through competition analysis or find a genuine need-gap in the market and work towards fulfilling it.
Also Read: Growth Hacking – The New Marketing Buzzword
Product Development: Once the business idea has been established through market research, a start-up should ideally choose to challenge the results of their primary research in their product/service development stage. They can do this by conducting dipstick surveys or any other research marketing tools during different stages of product development and ensure that they are working towards meeting their prospective customers’ needs and demands through and through.
Startup Launch: In the business world, a start-up is considered to be successful only when the idea is converted into sales and numbers. And to achieve this, start-ups have the option of using market research to build their idea marketability quotient right from the launch of their products/services.
Identifying the right time to launch, targeting the right people at the right places is the key to a phenomenal launch which is possible only with the data collated through market research. Adding a strong marketing strategy to it will not only make way for product visibility but also help in combating any competition that might threaten its growth in the market.
Sustenance Strategy: Once the start-up is up and about in the market, no matter how unique the idea or dire the need, the competition will exist. That’s where the age-old advice of ‘research your market’ comes handy for smart growth and sustenance hacks.
Market research will definitely help in figuring out the needs and upgrades expected by the customer but how frequently start-ups conduct such analyses and reinvent themselves will determine their overall success.
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