How can market research benefit small businesses in Uganda

Introduction

Market Research refers to the process of assessing the feasibility of a new product or service by conducting research directly with prospective clients. Companies use market research to define their target audience as well as obtain the views, preferences as well as feedback from consumers regarding a product or service. 

Established as well as up-and-coming entrepreneurs use the services of market research companies in Uganda to uncover and stay ahead of trends, make more informed decisions, and also sustain the competitive edge of their businesses.

However, there’s a common misconception that market research is only for large companies, meaning it has little or no significance for smaller businesses. This is a dangerous misconception. In reality, market research companies in Uganda or anywhere in the world, provide vital information, data, and insights to businesses irrespective of their size, to enable them to make better decisions in terms of customer targeting, pricing strategies, choice of products or services to offer. Even running an effective marketing campaign requires market research as the foundation for understanding the needs and desires of the audience.

Established companies can use market research to grow their sales and budding companies to recognize whether their business model is feasible. Therefore entrepreneurs owning small businesses should prioritize and make a habit of continually gathering market information in order to make well-informed decisions founded on solid data as opposed to speculation or guesses.

Some of the ways by which market research can benefit and help strengthen your small business

1. Anticipate market trends

 Market research helps small businesses to discover and understand the preferences of customers and hence the ability to predict trends before they are entirely prevalent in the market. Anticipating market trends with the help of a market research company in Uganda can help your business gain a competitive edge as well as place it in a better position to achieve long-standing growth. Uncovering the need and preferences of your customer goes a long way when deciding on whether taking on a given trend will positively impact your business or if alternative strategies would be better suited. 

2. Understand and monitor the competition

Among the notable benefits of conducting market research is the ability it gives you to comprehend what competitors are up to in order to stand out in the industry. Studying your rivals’ activities and operations can enable your business to exploit many of the strategies that are performing well and also pinpoint the areas in the market that are underserved.

Market research is also an avenue by which your business can keep a close watch on key rivals, most especially the strategies they are using to draw in more clientele, who possibly could also be your clients.

Small businesses can effectively monitor their rivals by speaking with their customers, analyzing their advertisements, checking out their websites, inquiring from business partners or even stopping by their premises. This can provide critical answers to important questions such as ‘Why do clients favor a particular rival?’ ‘Is my rival's marketing budget smaller or bigger than mine?’ or ‘What are customers’ views of the rival’s branding and marketing?’

It is also vital for a small business that is preparing to penetrate the market, to be equipped with information, data and insights about competitor companies. 

3. Improved and more informed decision making

Armed with the information, data, and insights derived from market research companies in Uganda, entrepreneurs and small business owners are able to make more informed decisions that align with and support their long-standing goals. It doesn’t matter whether you are getting ready to unveil a novel product line, penetrate a new market or simply searching for new techniques to better your marketing strategies, market research will deliver the fact-backed information essential for smart decision-making.

4. Spotting opportunities

Small businesses looking to keep growing are always keen to discover growth opportunities, including new and innovative products and services they can offer, new supply channels they could adapt, or even how to adjust their current product line to satisfy the desires of various client segments.

For such companies, conducting market research using a professional market research company in Uganda should be able to provide them with a wealth of knowledge about their customers, and their needs, developing trends in the market as well as emerging opportunities that can be exploited to increase sales or support company growth. 

Studying the predominant conditions in the market can shine a spotlight on underserved areas of the market, market changes such as population growth, changing demographics as well as industry trends that the company can exploit as opportunities.  

5. Detecting possible future hindrances to your business

In the event that the market presents certain challenges to a business, for instance, competitor over-saturation or aggressive price undercutting by some competitors, market research can enable you to detect these challenges so you react appropriately.

Market Researchers in Uganda can also help a business monitor the macro environment in which a business operates to identify beforehand any signs of looming challenges or threats, for instance, an economic slowdown, technological shifts, or other trends that can positive or negative. This is in order to aid businesses to be better prepared and adjust company strategies where necessary. 

6. Grow your business

Many entrepreneurs don't realize that growing or expanding a business too quickly can turn out to be an overwhelming and unnerving undertaking, especially since over-expansion could result in the downfall of the business. Therefore, Market Researchers in Uganda can assist businesses in evaluating whether an expansion is the right direction the company should take, guaranteeing that an investment in the business will be worthwhile.

Market research can also enable the expansion or development of new products and product lines or services, make adjustments regarding channels of distribution, and increase or reduce production among many others. Market research, therefore, gives entrepreneurs more confidence and conviction about the decisions that they make. 

7. Determining who prospective clients are

The greater the information a business gathers concerning prospective clients, the easier adapting their product to their specific preferences and needs will be. Knowing your prospective client’s age, gender, income, purchasing behavior, education level and planned use of your service or product can be very beneficial. It might mean the difference between growth and success or joining the statistics of business failures in Africa.

A small business can leverage this rich information produced from research conducted by market research companies in Uganda to calibrate or adjust its product, service, or marketing strategy as well as assess the viability of a novel product or service before it’s officially launched into the market thereby saving the company thousands of shillings.

8. Crafting a strategic direction

In a bid to expand its operations, a small business could choose to provide new product or services, extend the geographical range for their marketing strategies or even overhaul the advertising message passed on to the public. The decision on whether to go through with any of those changes is reinforced by market research. For instance, a small business looking to sell across national borders should have information regarding the number of prospective clients and the number of deep-seated businesses he will need to outcompete. 

Conclusion

Market research can be a valuable asset not only to large businesses but to conventionally smaller ones as well. In order for small businesses to thrive in the areas of sales growth, business expansion, decision-making, strategy formulation, and successful execution as well as long-term growth, they ought to undertake market research with a top market research company. Stop using intuition for important business decisions. Get quality market research now from Researchtec Global in order to gain as well as sustain a competitive advantage over your key competitors.