This column is authored by Karan Chechi, Research Director, TechSci Research
1. Culture and Etiquette Awareness
In an increasingly globalised world, people to people connection is taking place at an unprecedented rate, but this new age of communication and cooperation can be harmful as well. Oftentimes, companies become overconfident that digitalization is the way to open up a market and one can simply learn about cultures online.
This ushers in the false sense of security, security in the power of the internet; cultural introspection must be done on-ground and utilize local resources that understand how one economy differs from another culturally. A bestselling product in Britain may not sell quite as well in Bahrain, and the difference maker may just be inadequate market research.
2. Developing the Right Ideas
Marketplace interaction is not just limited to the buying and selling of a product; it begins with idea of a product, an initial step that sees its culmination in the aforementioned transaction. Today, simply creating a product is not enough, businesses need to develop the right idea. Why is this product being created? Are people waiting for a product just like this one? Why has nobody created a product like this before, and if they have what was the outcome? Why will anyone buy this product?
These are just a quantum of the questions that go into the idea of a product. Market research outsources some of the creativity and insight to professionals, who can come up with the right ideas for the right product.
3. Ability to Pinpoint Right Focus Groups and Target Audience
While Jeff Bezos and Amazon may harbour the ambition of wanting to “sell everything to everyone”, all products require a target audience, people who have the means, the ability and the wherewithal to purchase what companies want to sell. Focus groups are needed to adequately understand what the economy demands, and this is where market research comes in. Sample sizes need to be decided, adequate representation of every demographic and people with different motivations and expectations
Questionnaires need to be made and agreed upon, ads need to be created. The group needs to be carefully studied and the data recorded must be interpreted in the right manner to draw the right implications. Hit and trial methods may work once, twice may be even thrice, but for clear and consistent results, using professionals is a must.
4. Developing the Right Contacts with Right People
Very rarely do companies sell a product directly to the consumer. The economy nurtures a system of dealers, distributors, retailers etc. who all have different roles to play within said ecosystem. Interaction with consumers is important, but so is interaction with these other links in the chain. Improving the supply chain and streamlining logistics to ensure that products hit the shelf in a timely and economical fashion can only occur with establishing a reliable network where every stakeholder is on board with the company. Good market research firms understand this and will provide firms with the right information and the right insights that can truly help a new company prosper. A good market research firm can help companies by
5. Setting Achievable Targets
Fly too high and the sun may fry your feathers; fly too low and you may drown in the ocean. Companies need to be realistic about what to sell, how much of it to sell and at what price. Adequate market research can help firms avoid the both the devil and the deep blue sea, by setting logical targets and constantly monitoring results in real time to evolve a dynamic and comprehensive model for sales.
A good market research firm will know how to use data analytics and sophisticated forecasting to provide companies with the right insight and avoid the rude shocks that markets are in the habit of giving new companies.