One of the most significant factors that can lead to business failure is the lack of a substantial market for the product or service. Therefore, entrepreneurs must assess the feasibility of their business idea by determining the existence and size of their target market beforehand.
Forecasting future sales figures is of utmost importance for various reasons, and helps in the following ways
Firstly, it serves as a benchmark for evaluating the potential profitability of the business venture
Secondly, it helps entrepreneurs to anticipate their procurement needs based on the projected sales volume.
Lastly, it facilitates calculating the financial requirements essential for sustaining and expanding the business.
Importance of Feasibility Study
In addition, marketing research serves several essential purposes for business as explained below
Firstly, it helps businesses assess the potential demand for new products among customers. By gathering data on customer preferences, purchasing behavior, and willingness to adopt new offerings through surveys, focus groups, and market analysis, businesses can identify target demographics, assess demand drivers, and gauge the potential success of introducing a new product.
2, identify why current products are not selling,
Secondly, marketing research enables businesses to identify underlying reasons for poor sales performance of existing products. By conducting customer surveys, analyzing sales data, and studying market trends, businesses can uncover issues such as product quality, pricing, branding, or distribution challenges that may be hindering sales.
3, Discover better methods of marketing existing products,
Thirdly, marketing research helps businesses evaluate the effectiveness of their current marketing strategies and explore opportunities for improvement. Through market surveys, competitor analysis, and consumer behavior studies, businesses can identify new marketing channels, messaging approaches, or promotional tactics to enhance brand visibility and attract customers.
4, Analyze changes in customer needs
Furthermore, marketing research allows businesses to respond to evolving customer preferences and changing market dynamics. By continuously monitoring customer feedback, conducting satisfaction surveys, and tracking market trends, businesses can adapt their product offerings, features, or marketing strategies to align with shifting consumer needs and preferences.
5, Reduce the risks of new competitors.
Lastly, marketing research helps businesses anticipate and respond to competitive threats posed by new market entrants. By conducting competitor analysis, market surveys, and SWOT assessments, businesses can identify potential competitors, assess their strengths and weaknesses, and develop strategies to differentiate themselves and retain market share.
Public Administration N4 – Characteristics of a democratic state
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