Market research is a huge investment in both time and money, but it comes with a high return on investment if done correctly. The main advantage of research is that it provides executives with valuable information that allows them to make better, more profitable decisions. It has become essential to all areas of business, from product development and launch until after the sale is made.
What is it that makes market research so valuable? Inkwood Research has identified 7 key areas where market research is invaluable, so let’s take a look at those.
- Research allows businesses to identify opportunities earlier than everyone else. Once you understand your target market, you will know where and how to reach them. Plus you’ll understand their pain points so you will be able to develop products and services to solve those problems.
- Risk mitigation is one of the most important tools in the business. Since research provides you with valuable information, you are at a much lower risk of making bad decisions. For instance, if you are looking to develop a new product then you can research your market ahead of time to make sure your idea is something they need.
- Promotional materials are time-consuming and can be quite expensive to create, so you must get it right the first time. Research shows you the needs and frustrations of your target market so you can develop promotional materials that reflect this.
- Use market research to find the right channels to market. Small business owners are limited by their budget, but research can offset this limitation by showing you exactly where to channel your ads.
- Companies that utilize research are going to outsell competitors that do not. The days of relying on gut instincts are long gone. The business world now rewards those who put in the most work, not those who get lucky.
- The market analysis provides unique insights into your target market so you will be able to set better goals. Businesses that set goals without the proper research input are just guessing. They don’t know how to achieve those goals.
- Finally, decisions are much easier to make when you have access to information. Having the right analytical tools gives you access to powerful reports that can be used as a tool for all decisions.
Market Research will Help Manufacturers stay Relevant During Downtime
As we all know, there is a lot of downtime in manufacturing in B2B sales. The time between cycles can sometimes last entire months, so it’s important for businesses to stay relevant. If you are not staying relevant to your target market, then they are going to forget about you when it’s time for them to place another order.
Market research provides you with ideas for video content, eBooks, and demonstrations that you can use to continue engaging those prospects. What makes this so amazing is that you can also use these same materials to bring in new leads! There is a famous business expression that I love to fall back on:
Fortune is in the follow-up
To reap in the advantages of B2B strategies, you will need to take advantage of every tool at your disposal. Businesses that can keep their leads warm even during downtimes are going to achieve the highest levels of success. The market research gives you access to the information to achieve that end.
Identify your Target Market with Pinpoint Accuracy
Identifying your target market is one of the most important aspects of effective marketing. The truth is that you must be able to identify your target market with absolute pinpoint accuracy. By targeting a market that you know is interested in your products, you will get more hot leads that are willing to make a purchase.
Start by building what is known as a buyer persona – a profile that describes the individual you envision buying your product. Buyer personas improve conversion rates by a whopping 10%! So let’s look at how market research is used to create this profile:
1. Pretend you are interviewing your potential buyer and answer questions related to their age, education, and career.
2. What problem are they having that your products can solve?
3. Where do these people spend most of their time?
4. Use this information to paint a clearer picture. Use data visualizations and other analytical tools to generate a profile.
5. Plan your marketing strategies around this profile, so you are placing the right ads on the right channels.
Gain Primary Insights
Certain insights are only available through market research, making it extremely powerful. You cannot get some of this information through secondary sources. Primary insights are directly related to the target market you just defined.
For instance, a wealthy buyer will not be as concerned about price as they are quality, so you can set higher prices to develop products that offer them something unique. On the other hand, if your target market is struggling with money, then offering lower prices might be the unique advantage you offer.
Market Research is the Best Risk Mitigation Tool
Being successful in the manufacturing industry requires the development of exceptional risk mitigation strategies. Market research is going to be your most powerful tool because it takes the guesswork out of business decisions.
It might not always be 100% accurate, but it will always lead you in the right direction. Hard data is always preferable to instinct, and we now have more data than ever to look through.
If you need help defining your research strategy, then consider investing in professional services like those found at Inkwood Research. This will be the single greatest investment you’ll ever make.
Having the right research strategy will boost your business ROI, ensures that you are staying up-to-date with customers and trends, all while ensuring that the quality of leads you bring in is high.