Retail Research And Market Analysis
The Different Pros And Cons To Retail Research And Market Analysis
Retail research and market analysis surveys are items that involve examining the marketplace and finding where you can fit into the industry niche. This can be beneficial for smaller business helping them make strategic moves; however, there are also several disadvantages to using research and market analysis. This article will provide information on the different pros and cons of retail research and market analysis.
What Are The Different Disadvantages Of Retail Research And Market Analysis?
1. Misidentifying Marketplace Needs
One of the elements of all marketing analysis surveys is the identification of the market segment’s needs. Moreover, this analysis will also identify what other companies and products are doing to satisfy the needs of this market segment. The disadvantage of performing the analysis is twofold in this area. Firstly, companies may overestimate how well their competition is meeting consumers’ needs and quit before entering the market. Next, they may misidentify the particular need to be met and attempt to provide services that are irrelevant to the consumers’ requirements.
2. Evaluating Market Growth Without Any Market Share
Retail research and marketing analysis will incorporate a review of overall market growth, which can offer an idea of different marketing opportunities. If the analysis is discouraging, however, it can be a disadvantage. Companies are only successful in limited markets if they capture market share and an analysis of a market size exclusively is not enough to indicate the range of opportunities.
3. Target Markets Versus Market Segmentation
To understand the different approaches to service customers, it is important that you first identify the market segments for the company’s products or services being offered. The disadvantage in this area is that researching segmentation can cause companies to “spread themselves too thin”. Only a few businesses are able to market their services to consumers in all segments; therefore, it is recommended that you identify a particular market and target this market to successfully gain customers.
4. Incorrect Interpretation Of Research
Marketing analysis results are only as good as the individual analyzing the results. While one can collect a large amount of data, the interpretation is the most significant part of the marketing analysis procedure. A company can be at a disadvantage if any facts are misinterpreted; therefore, it is important that the analysis is completed by a trusted researcher and not based on wishful thinking.
What Are The Advantages Of Retail Research And Marketing Analysis?
1. Identification Of Opportunities
One of the greatest benefits of retail research and marketing analysis is the identification of marketing opportunities. For example, an owner of a small restaurant may wish to identify what foods consumers in the area would be interested in. Using research and marketing analysis, the owner can identify key areas and discover that certain grocery stores may want to stock his menu items. You will find ample of opportunities in commercial real estate in Cincinnati Ohio .
2. Minimizing The Risk Of Decisions
The second advantage to retail research and marketing analysis is that it minimizes the risk of different business decisions. A smaller company using market research will be able to predict how well their goods will sell on a regional and national level. Using research analysis, the company can test the products in various areas and track sales and profits among target consumers. The company can also identify whether or not the marketplace has similar products; thereby, minimizing the risk of spending more money on the product only to have the sale of the good fails.
3. Evaluating The Level Of Success
Smaller companies can utilize market research to evaluate the success of the business as well as identifying product effectiveness. Customer product companies will often perform research to determine if consumers are pleased with the products. Similarly, business owners will conduct surveys among target audiences who enjoy using the company’s products; thereby, he or she will be able to determine the level of product satisfaction among users. This is highly beneficial because it will help determine what works and which products need to be reformed.
4. The Costs
According to the market analysis company CSR, a focus group as part of marketing analysis will cost approximately $6,000 per eight-person group. The session allows each person to speak for approximately ten minutes including the interviewer or moderator. A focus group is often performed at facilities using one-way mirrors, which is beneficial because it lowers the level of intimidation among participants as many individuals are out of sight. The reason this is more beneficial that mail surveys, for example, is that market analysis costs at least 50% less helping the company to save money.
As can be seen, there are various pros and cons to conducting marketplace research and analysis. Using the information above, you can determine if your company will benefit from this particular type of analysis. Also, will this analysis beneficial to make your commercial real estate investment profitable?