Market research has been proven as an inevitable step towards growth and success in any form of business activity. It arms you with the relevant information for staying ahead of competition and boosting your own prospects in the market. However there are still many businesses that fail to capitalize on market research despite being aware of its significance due to a variety of reasons some which are discussed below.
Limited Budget Research
Many businesses do not fully appreciate the importance of conducting a thorough market research and hence have a half hearted approach towards it. Thus they allocate little or insufficient funds for research which gets them incomplete or incorrect picture of the market forces. Having received inadequate information these businesses are no able to rely on the findings for formulating their strategies and hence abandon it out right. Therefore they are unable to exploit the complete potential of this powerful tool to achieve their business goals. In order to capitalize on any research findings it has to be complete and relevant to the purpose which may not be possible with a limited budget.
Relying on Secondary Market Research
There are two basic forms of market research in which the primary research derives information through direct contact with the relevant sources via interviews, surveys etc and the secondary research relies on information available in the public domain such as in libraries, internet or publications. Primary research is more focused and oriented towards your requirements and requires greater effort, while the secondary approach is passive and relies on what is available rather than what you want. Thus findings of the secondary type of research may not yield the vital information that your business needs. Hence businesses that rely on secondary research shall never be able to capitalize on the true benefits of a market research to further their business goals.
Lack of Patience
Research projects are generally quite unpredictable in their progress. Many business owners start off with market research with great enthusiasm but when it confronts any roadblocks they tend to give up on it. Thus they are unable to get to the end of the research which can yield meaningful analysis for them that can be used for formulating plans and policies for the future. It is only who persist with the research despite setbacks are able to get the desired results and are then in a position to capitalize on its findings.
Many businesses are family owned and are run more on the lines of family affair rather than professional outfits. In such cases advice from friends and relatives are considered to be accurate enough and more pragmatic than the findings of a market research. However inputs from friends and family members may be based purely on their own perceptions and experience rather than hard facts of the market thus creating false impressions. Unlike a professional research, such inputs do not reflect the aspirations of the real customers and hence can be quite misleading in their implications. Additionally many family run businesses feel that their sheer presence in the market for a long period gives them adequate knowledge of customer experience which no amount of research can provide. With such an outlook it becomes difficult for any business to capitalize on the findings of a good thoroughly conducted market research.
Market research is based on scientific foundations and is conducted to get insights into market forces which are not obvious from the surface. Thus unless the validity of the research is trusted and implemented to the hilt businesses cannot capitalize on its true potential for enhancing their business prospects.
Mia Palmer is a business analyst and writer at ResearchOptimus . Her favorite blogs subjects are Market Research and Equity Research. She loves sharing her knowledge with others.