Market research is important because it helps organisations understand the markets in which they operate. Products and services must fulfil a need or want and sound market research is the footing for any business.
Though the process can be time consuming, the results are of significance because the data allows decision makers to come to a conclusion regarding appropriate product/service features, pricing strategy and promotions. While outsourcing market research the relieves pressure off your internal team, it also leads to accurate data about your competitors, economic shifts, demographics, current market trends and the spending traits of your customers.
Advantages of Outsourcing Market Research
Market research requires advanced technology in order to produce fast and extensive data. Outsourcing to a service provider helps your organisation benefit from the significant technology investment from the provider, giving your organisation access to up-to-date tools and software for research and analysis.
It is a time consuming task, hence the option to outsource gives your marketing team the opportunity to focus on their core functions. Moreover, it eliminates costs associated with hiring an in-house team to perform the market research, costs such as hiring, training and remuneration.
Accurate and Precise Data
Outsourcing to an experienced research team will lead to accurate results and a fast turnaround time. By delegating the task, you eliminate the risk of jeopardising the integrity of the research process as the objective third party service provider is not directly linked to your organisation and their core objective is to acquire and deliver accurate information for your organisation.
Types of Research to Outsource
Key Demographic and Cultural Research
Understanding the demographics and cultural factors of the market that you operate is important because markets vary across the world.
Global and Local Competitors
Research on competitors will help your organisation gain clarity on its competitors and monitor their performance over a period of time. With this market intelligence, your business can maximise on its competitive advantage, while ensuring that all marketing communications are hinged on those strong points.
Customer Needs and Preferences
Customer research helps you identify who your customers are and understand what motivates them to purchase your product or service. Outsourcing this process helps your organisation gain insight on your customer’s needs, preferences, opinions and spending habits.
Global and Local Market
Outsourcing market research will help you with market positioning. Market research helps businesses benchmark and monitor their progress for better decision making.
Market research helps you realise gaps in the market based on customer’s needs. When launching a new product or service, market research may lead to a realisation that your target audience wants and needs do not fit with your product offerings, thus allowing appropriate modifications.