I’ve enjoyed teaching a market research course to would-be entrepreneurs for a couple of years. Many of my students were amazed by the amount of useful information they found and how the process shaped their business visions. By using market research as a planning tool, they were able to identity and reach their target customers, understand their competitive landscapes and get a good sense of the industry trends. In another word, they’re much more prepared to succeed in business because of the leg work they’ve done.
However, what many overlook after the business is up and running is that market research, as a management tool, is just as important for established businesses. On a weekly basis, I come across companies that do not conduct market research or use surveys as a tool to better serve their current customers. By understanding your customers’ needs, expectations and their loyalty to your business, you will be better at anticipating demands and achieving higher customer satisfaction.
For companies that are introducing new products or services, or entering into a new market, the process of market research will help businesses understand the demands and gain insights into success factors. It’s the continuous effort and commitment toward market research that drive company growth.
As an example, test marketing is a known research strategy that McDonald’s has adopted. If you’ve ordered a new item on the menu, you’ve participated in the company’s test marketing campaign. The idea is simple – if a new item is popular, it stays on the menu; if it tanks, it’s yanked from the menu. The menu, therefore, is ever evolving and ever adapting to customers’ tastes. Test marketing is one of the factors that enabled McDonald’s to remain as the #1 fast food restaurant after decades in business.
Share with us how your business has benefited from market research by commenting below!
