Are you undecided about hiring a marketing research company?
As a startup founder, you know that market research can make the difference between success and failure. You have the option to do the research on your own or outsource the task to a specialized company. Maybe you’re leaning toward the DIY approach because your startup doesn’t have the budget to pay for market research services.
Whatever reasons you have for not being sure about hiring a marketing research firm, they’re not well-founded. If you need some convincing, read on to learn various ways a market research company will help your startup.
Establish Whether There’s a Market Need for Your Product/Service
One of the most common reasons startups fail is selling a product that doesn’t have good market demand.
You might have heard some people advising entrepreneurs to just focus on building the product and the customers will come. In the real world, this approach rarely works. Your product needs to have a real market; otherwise, it will rust away on your shelves.
Now, how do you determine whether the product you want to create will have a viable market? If your product is a version of an existing consumer good, such as bread, you don’t need to be a genius to tell there’ll be a market for it. How much product you sell will come down to the quality of the product and your marketing strategies.
But if it’s a new invention, you need to do adequate market research to assess its viability. A market research company has the resources and expertise to conduct the research. They’ll use a variety of market research methodologies, including consumer surveys, personal interviews, and customer observation, to collect the needed data.
Ultimately, you’ll get a comprehensive report with the firm’s findings and recommendations. Whatever the recommendations, you’ll have the information to make a sound decision.
Define Your Target Market
Your product has sufficient market demand. You can’t wait to start selling it and making a bank.
Before you get ahead of yourself, who will you be selling the product to? Just because your market research indicated there are consumers willing to buy your product doesn’t mean you’ll make a ton of sales.
Many factors will determine how well the product sells. Top on the list is how well you know your ideal buyer.
Let’s assume your startup business makes pontoon boats. You can quickly assume that your target market comprises anyone who’s passionate about boating.
That’s not the case. There are teenagers who love boating, but you can’t include them in your market planning since they don’t have the income to afford your boats!
A market research company will help your business develop a clear picture of its target market. You’ll know the age, average income, gender, marital status, and even educational attainment of your ideal customer.
Knowing who your customer is will enable you to, among other things, design the best marketing techniques.
Competitive Intelligence
Unless your startup has carved out a new niche for itself, you already have a handful of competitors. In fact, even if you’re in a new niche, it won’t be long before competing companies join in.
Understanding the state of competition in the marketplace is key to designing a winning business strategy. If you’re wondering why you should hire a market research company to tell who your competitors are – something you can probably do on your own – you’re missing the point.
Competitive intelligence isn’t just about identifying your competitors. It’s also about gathering information about the various strategies competing companies are using. Competitor intelligence enables you to predict with good accuracy what your competitors are planning for the future.
As you can see, getting competitive intelligence isn’t something you can do with a simple Google search. An experienced research company, like Stitch Marketing Research Company, will get down to work, conduct competitive analysis, and deliver all the valuable competitor data and insights.
Saves You Time and Money
If there’s something standing in the way of hiring a market researcher, it’s the associated costs and possibly because you think it’s something you can do.
We’ve already debunked the myth that market research is a simple task any layman can do. You need the right professional training and experience to competently undertake market research. Plus, it’s a time-consuming activity that will keep you away from other duties you have in your startup.
Hiring a market research company not only gives you access to the pros but also saves you a lot of time. Instead of spending most of your time in the field gathering market data, you’ll focus on the tasks you do best.
You’ll also save money – though not directly.
Yes, you’ll incur a direct expense when you engage a market research firm. However, think of all the valuable insights they’ll bring to you; insights you’ll use to make informed decisions, thus avoiding potentially costly mistakes.
For example, if market research reveals that there isn’t enough market demand for a product, you’ll shelf the idea, instead of blindly blowing money on the production of a good that won’t sell.
A Marketing Research Company Is Your Ally
You might think of a marketing research company as one of those service providers out to grab your startup’s hard-earned money. That’s not the case. As we’ve demonstrated, these research companies will help your company in several impactful ways.
Your only worry should be finding a competent firm that’s worth the money.
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