If you are an investor (or preparing to become one), you will need to know how to use market research data. This kind of information will help you figure out which investment vehicles would be best to use in a particular market. It will also help you reduce the risk that you might lose money when investing.
You should learn first what market research data is exactly so you can figure out how a Market Research Firm like Magid can help you improve your investing strategy.
What Is Market Research Data?
As its name suggests, market research is information that you need to know because it will tell you how the market you are interested in is performing over a given time. You may do your own market research if you are knowledgeable as to how. For example, you can use The Kano model and similar research methodologies to discover what the desired features of your service or product are. Or you can rely on market research done by professional analysts – you have to pay for their analysis though.
When Is Market Research Data Necessary?
Some people want market research data because it will help them decide whether they should open a new company to serve a particular market right away. The data can also be helpful when the new company is poised to expand, sometime in the future. The information in market research helps businessmen see how the market is evolving so they can make an educated prediction of what the market will do.
How Can I Use Market Research Data When I’m Investing?
When you plan to invest, you are basically thinking of how you can serve a particular market better than your competitors can. An investor like you can rely on market research data to see how existing companies are surviving in that market so that you have insights on how you can do better than they can. It will also support your efforts to come up with products and/or services that are unique and appeal to a niche in the market.
What Happens if I Don’t Have Sufficient Data About a Market?
Without the right market research data on your team, your efforts might lead to bankruptcy. It might also mean surviving but making minimal profit despite using a sound business strategy. This is why many big companies invest in market research data – they cannot afford to lose money because they are huge so they need more profits to survive. So they have companies like Magid research for them to find ways to better serve their key markets.
A good example of the need for market research is when companies do SEO campaigns. Your company might be making notebooks made from recycled paper so you want more people to buy your notebooks. But if you don’t know who is using those kinds of notebooks in a particular market, you might offer it to the wrong crowd through an SEO marketing campaign. If the market of your notebooks is actually the teenage crowd but you are marketing to old people aged 60 and above then there is a disconnect between you and your market. So your sales will be dismal if any at all get sold.
If, on the other hand, you rely on your knowledge of the market, you can craft an SEO campaign that tells the 60-years-and-above age group how they can benefit from using your notebooks made from recycled paper. You might advise them to keep a journal of their thoughts with one of your notebooks or to buy your products so they can give them away to their teenage grandchildren for Christmas. This shows that you know and understand that market and will direct your marketing towards that particular demographic.
Market research data is really important for investors because it helps cut down on costly mistakes. The data may be used to keep up with or surpass competitors in a particular industry. With the right market research data, you can make educated guesses on the possible behavior of the market during a particular time period based on how the market has performed in the past. If you intend to do market research, you should know the elements of your market so that you can compare its performance in an earlier time frame with the behavior you are observing now.
Going into business without the correct market research data means you will be making wild guesses about market performance and implementing those guesses through trial and error. If your company is small and your competitors have more resources, you will definitely need to rely on market research data to help you become more competitive in your industry and survive even during tough times experienced in the business.