The purpose of market research
When a business wants information about the market or what customers want, it undertakes market research. Market research collects information that might help a business to be more successful and spot gaps in the market.
Identifying customer needs
One of the aims of market research is to identify and understand the needs of customers relating to price, quality, choice and convenience. A business must make sure it is providing the right product, at the right price, in the right place, at the right time. By identifying the needs of customers through market research, businesses are able to reduce their level of risk and make business decisions that are more likely to be successful. Customer needs change over time, so it is important for a business to keep up to date and be InnovativeBeing creative and coming up with new ideas or ways of doing things. with its products.
Jaap the carpenter discusses being self-employed and how he manages his business
Identifying gaps in the market
Another purpose of market research is to help a business identify gap in the marketA gap in the market refers to a place in the market where there is demand for a product or service that is not currently being met.. This is an area where there is demand for a product or service that is not being met. For example, before the first car was invented, an entrepreneur may have noticed that there was a demand to get around more easily and more quickly. Similarly, online music streaming services spotted that there was a demand for more convenient ways to listen to music, so they provided online access to music that could be downloaded. Spotting a gap in the market gives a new business a good chance of success as there will be little competition to begin with.