Market Research and It's Importance

A Guide For Start Ups

by Joshua Oguntan

Market Research and It's Importance

If you're a recently opened company or you're planning to open a startup, you are going to need to start carrying out some extensive market research.

Having an in-depth understanding of the marketplace helps business owners formulate and implement good business strategies which boosts the growth of their businesses. As a business owner, you should know about the two kinds of market research methods, they are the Primary Research and Secondary Research.

Primary Research: This kind of research is either done alone by a business owner or done on behalf of a business owner by an individual attuned to the market system. It involves answering the following questions during the research:

  • Who are my customers and how do I reach them?
  • Which products or services does my audience need or want?
  • What factors influence the buying decision of my customers?
  • Who are my competitors and how do they operate?

Secondary Research: This refers to a research that has already been conducted and compiled for the business owner. A business owner is able to achieve this by studying published reports and data from competing companies to gain insight into the companies sound marketing strategy. The kinds of data to be studied are newspaper reports, government databases and existing case studies and surveys.

In conducting any of the two kinds of market research, a business owner will be able to see clearly what opportunities are lurking for them. It also helps to make a pretty good decision in determining if going for certain opportunities is a good idea or not.