Importance of Conducting Market Research in Singapore
Market research is a critical step that involves collection and analysis of data about the target market, product/service demand, competition and the environment in which the business is setup. These information that are gathered through the research provide valuable insights which are critical for taking strategic business decisions.
A report published by Forbes suggested that approximately around 90% of the startups fail within a year from of starting their operation. On doing a comparative study between the successful and failed businesses, it was seen that the failed startups oversaw one critical step, the “Market Research”. They failed to evaluate the market and asses the customer demand and competition for their product/service, before implementing their business. Similar trends can also be seen in Singapore. A study conducted by Straight Times suggested that majority of the people fear of failure after starting a business. Having a feasible business plan and conducting a through Market Research will help overcome this fear and paves the way for a successful Entrepreneurship.
Benefits of Conducting Market Research in Singapore
There are several benefits that can be obtained by conducting market research.
Designing Communication Strategy & Marketing Collateral
By conducting periodic market research, valuable data can be obtained and analysed about customer behavior; based on which a particular trend can be established. The results from the research provide sufficient data to formulate an effective communication strategy to reach out to potential customers. The marketing materials can be tailored to suit the needs of the customers, which provide leverage to the business.
Branding & Positioning Product / Service
In order to establish a brand, a promise has to be made among the customers that are reflected in the logo or the slogans. Market research helps in defining the brand’s promise. It also helps in positioning the product / service at different stages by benchmarking them that of the competitors and periodically monitoring its progress.
Measuring Product / Service Performance
The research provides insights on the demand for the proposed product/service in market. Through Surveys and interviews, customers’ reaction on the proposed product/service can be analyzed, even before it is introduced. Modifications can be made to the product/service that is offered to satisfy the demand by the customers. This provides a huge leverage to further develop the product/service to suit the needs of the market. An estimated sales forecast can also be obtained through market research which can be used to optimize the expenditure and achieve maximum profit.
Identifying and Analyzing Direct Competitors
Market research serves as a yard scale to measure our current position against the existing competition. Market Size, Pricing Strategy, Product / Service Positioning, Unique Selling Point, Corporate Strategies, Consumer Perception along with the Strength and Weakness of the competitors can be assessed. This provides actionable insights on the strategies to be adopted to effectively compete in the market.
Identifying Potential Business Location
The location in which the business should be setup can also be analysed through research. Some of the locations may already have a saturated market for the product/service which may affect the profitability. These outcomes can be avoided through proper market research.
Minimizing the Risks in Business
A market research study can not only enable business to accelerate their growth in the market, but can also help mitigate the potential risks that might arise in the business. Therefore, it becomes essential for businesses to conduct in-depth market research and use information / insights to make key business decisions.
Related Articles
5 Reasons Why Market Research Matters
Everything is very open with a clear clarification of the issues. It was truly informative. Your website is very useful. Thanks for sharing!