- Provides up to date information, important for fast paced industries.
- Allows improvement of marketing strategies.
- Assesses customer reactions by testing products on them.
- Gives a business an understanding of the activities and strategies used by rivals.
- Helps predict future trends to maximise opportunities.
Frequently Asked Questions about the Purpose of Market Research
The fundamental purpose of market research is to gather information that helps businesses make informed decisions. It reduces uncertainty by providing insights into customer needs, market trends, competitor activities, and the overall environment.
The primary purpose is to provide management with relevant, accurate, and timely information to help solve marketing problems and identify opportunities. This allows companies to understand their target audience, assess the viability of new products, optimize marketing campaigns, and evaluate performance.
In business, market research serves to connect the company with its market. It helps identify customer needs and preferences, understand market size and potential, analyze the competitive landscape, forecast sales, and refine marketing strategies (product, price, place, promotion) to achieve business objectives effectively.
Market research is best described as the systematic process of collecting, analyzing, and interpreting data about a market, its customers, and competitors to gain insights that facilitate effective decision-making and reduce business risk.
