Why do companies use market research

Why do companies use market research

These days, if you visit the website of a reputed brand or company, you are left with a pop up box on your screen that asks you if you would like to participate in a market survey for the company. Market research is an invaluable tool and can have a strong bearing on their bottom lines. Here are a few reasons that prompt companies to use market research.

To monitor performance

Market research is the simplest way to gauge a company’s performance, customer satisfaction with their products, customer feedback on what needs to be improved, etc. these surveys are usually very simple yes or no questions with a feedback column at the end asking the customer to list their feedback about the company’s products and services. This feedback allows companies to get a more accurate representation of its reputation among customers.

To gauge market trends

When a company isn’t using market research to gauge its own performance, it can use it to get more information about market opportunities, current usage patterns, size of a market etc. which are important to a company’s future strategy.

To test products and ideas

A poorly tested product, ad campaign, new packaging or price etc. could prove to be disastrous if they are launched without doing a market research for them first. Usually, such research involves a test group of customers that are paid for their feedback. Companies also offer free samples along with a feedback form to obtain customers’ feedback on new products and ideas.

To create new campaigns and products

Companies are always on the lookout for new ideas for their product range and ad campaigns. A simple market research allows a company to create a product that a large number of customers want. For example, a company selling only meat laden pizzas may be able to use market research to see if a vegetarian pizza would be success in a particular market or not.