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Business Market Research: Helps in Assessing the Feasibility of a Business Idea and Effectively Marketing the Commodities

Business market research aims at providing business organizations information about markets or customers for making informed business decisions. It is an organized effort to gather information to identify and analyze the market need, market size, and the nature of market competition. The gathered information helps business organizations in making business strategies to get an edge over competitors. Thus, business market research is a very vital part of business strategy of any company. Companies either conduct such research themselves or hire the services of agencies or companies that offer professional market research services. It is always advisable to small business organizations with limited financial resources to avail the services of a professional agency or consultancy to meet their market research needs.

Business market research helps start-up or small companies in identifying their customers; locating customers; identifying their buying habits, like how much and how many times they will buy; customer needs and preferences. It can help entrepreneurs to examine the feasibility of a start-up venture before investing a huge amount of capital and other important resources. Business market research will also help them later on in the effective marketing of their products and services.

Business market research is a systematic and well-organized process that involves a number of research activities aimed to link marketers with consumers . The term market research is interchangeably used with marketing research but there is a remarkable difference between these terms. Market research is mainly concerned with the study of market, whereas marketing research is concerned specifically with marketing processes. Business market research is an early step in the marketing process, which is primarily used identify business opportunities and problems as well as developing and evaluating the success of marketing strategies. The business market research also involves analyzing the market demand for a new product, or existing products, and effective methods of their distribution.

The research involves the use of various techniques, such as sample and online surveys, polls, focus groups to study the market features, like ages and income of customers, their attitudes and behaviors. These studies are conducted with the sole purpose of improving the efficiency of sales and distribution of business organizations. Business market research also helps companies in new product development, exploring new markets, assessing the advertising effectiveness, by providing requisite information about market. Another important task of the research is to offer the data about the competitors. In this way, business market research provides companies a complete knowledge about their customers, their competitors, and the industry in which they are operating.

Thus, business market research assists you in identifying the need and wants of customers and their behaviors. Once the research is over the findings are used to formulate the marketing strategies, like how to effectively market your products to beat your competitors’ products.

Business market research provides you information on following areas:

  • Market Information: Includes information about the prices of the different commodities in the market, as well as the supply and demand position.
  • Market Segmentation: Involves dividing the market or customers into subgroups with similar motivations on the basis of geographic differences, personality differences, demographic differences, and other such differences.
  • Market Trends: Involves information about the upward and downward movement of a market during a certain period of time. The data is derived derive from the number of potential customers, or customer segments.  

Apart from aforementioned points, information about one's competitors, customers, products, etc. are also provided by the market research.