The need for market research

1. The need for market research

Market research is an essential business tool and is a work to be done in a competitive market, where too many products are subject to intense competition in order to gain acceptance and / or use by customers. Therefore, the more you know about the market and the more potential your customers are. Knowing your target audience in a locality and their buying habits will help you find the right way to successfully bring your product to market.

Through market research, you may come up with the idea of ​​developing a new product and choosing the right positioning strategy for that product in each specific market. For example, through research, you can find that the taste of a particular food is very popular in this market but it is considered special in another market and that will be the marketing information needed. If your business strategy relates to that field.

The research will provide very important details to help you from discovering "niche" market to planning an effective export marketing strategy. Thanks to research, you don't have to waste money and effort on false hopes, especially when you make your first export. On the other hand, it should be noted that market research is not a guarantee for business success, but it will help you avoid many wrong decisions.

Market research can assist with:

that really is your competitive advantage.

Even during periods of slow population growth, new trends and target groups of customers appear, such as an increasing number of elderly people or single households. Both groups are looking for convenient products. Through market research, you can identify the size of these groups as well as the differences of each group in different countries and can predict their interests to meet.

The "proactive" approach will lead to success by quickly responding and introducing products designed appropriately in size, style ... for each of the aforementioned customers.

Market-content research is indispensable in export marketing strategy

Market research is more than just a collection of data and statistics. All collected data should be analyzed and converted into relevant information. This information is the basis for formulating your marketing strategy and tools.

Like the planning process, market research is cyclical. First, when reviewing the initial data, you see some issues that need further research. You conduct research, then add new information to your information system. Therefore, market research does not stand alone, but is an integral part of your export marketing strategy. It is an ongoing process.

Market research requires strong commitment

Market research requires an investment of time and money. Many companies still carry out export activities on a "self-financing" basis, that is, start exporting and then use the profits earned from selling products on this market to re-invest. . This is not applicable to market research. Here, you need to invest some money to research the market before introducing the product and that will help you avoid paying dearly for mistakes in the target market later.

2. Definition of market research

Market research includes all methods to assess which foreign markets bring the most potential for your products.

A simple definition of market research can be defined as follows:

"Market research is the collection and analysis of data on human markets, constraints, distribution channels and participants to better support export marketing decisions."

There are a number of misconceptions that make businesses turn away from market research:

First: "Research is the work of intellectuals and academics"

This misunderstanding is in part because some researchers have used complex specialized concepts and terminology. However, good researchers are well aware that everyone can easily design and conduct market research.

Second: "The partner will conduct all necessary research"

Some exporters believe that they already have enough information through their trading partners or expect the partners to conduct research first. In addition, some exporters consider market information to be a by-product of the accounting system. But the problem is that trading partners often lack an objective, general assessment of the market and the development of distribution channels in their country.

Third: "Market research is too expensive"

Market research does not necessarily involve conducting surveys, interviewing many people and performing complex computer analysis, which can be very costly, especially when penetrating different EU countries, which can use a lot of inexpensive techniques (such as office research or internet search).

Fourth: "Fear of losing control when information is too much"

Some exporters are too busy and afraid to follow up when they have to look at all the information and work with researchers. However, most of the studies discussed in this book require a normal quality and a commitment of time.