Target customers of B2B companies are other companies. It involves sales of products or services between two companies. Hence, it is mandatory to know the requirement of the target audience, in-depth. The clients, usually, research their desired products from various sources available online and offline. On the other hand, B2B companies make use of market research to know the requirements of their target customers.
In this post, we will discuss the role of market research in B2B marketing and the importance of marketing research in decision making.
What Is the Role of Market Research in B2B Companies?
Primarily, market research provides strategic analysis of the market. Further, these analyses are used by companies as insights to make data-driven decisions and locate their target audience. For example- Valasys Media, a B2B marketing agency, assists its client companies to reach their target audience on the basis of insights collected from these market research reports.
When we say research about your audience, market research reports serve the purpose. Besides, other roles of market research in B2B market is mentioned below-
- Define market
- Collect competitive insights
- Find new opportunities
- Measure market viability for the products and services
- Discover the customers’ requirements
- Evaluate changes in the demand of target customers
- Take better business decisions
- Economic fluctuations region wise
- Ongoing market trend of niche
All this information, collectively, enables B2B companies to identify new development opportunities. In addition, businesses also leverage market research to foresee threats.
Besides the importance of marketing research in decision making, it is also in demand to examine their products/services, advertisements, and similar market opportunities for the following outcomes-
Uniqueness- The product or service offersa unique feature to stand apart from similar products provided by the competitors.
Preference-A product/ service must serve the demand of its users or it will no longer be in demand.
Protection-B2B market research companies should be able to prevent competitors from leveraging strategic advantages.
What Does Market Research Provides?
Market research provides several data for different verticals of business. It focuses on customer requirements and demands. This helps in designing the product or service so that it can be used by the maximum target customers of the company. The competitive analysis section of market research provides insights about the external market- emerging technology, political and regulatory activities in the area of business, and similar other developments.
These data help companies to evaluate key aspects of business such as strategic alliances, franchising, foreign direct investment, and licensing.
Also since market research consists of future-oriented analysis, companies can articulate a full-proof plan against possible threats, vulnerabilities, competitor actions, and out-stand the competition.
Integration of research and intelligence enables the business to assess investments (present and future), innovate ideas, risk management, and fix launch time.
Some of the important components of market research include-
- Customer insights and lists
- Market sizing data
- Market opportunity insights
- Partner sourcing services
Again as mentioned in the previous section, these insights help companies to calculate every business decision. This, further, helps to outperform the competitors, capture the attention of the target audience, and boost conversion rate exponentially.
However, weather of the market keeps changing from time to time. The next section focuses light on this issue.
How Often Market Research Should Be Conducted?
As per research- businesses that take the approach of business quarterly at least tend to exhibit excellent growth in terms of business expansion and revenue generation. However, companies incorporating market research annually showcase better results when compared to companies that do not research at all.
Considering the success rate, it is advisable to conduct market research twice a year; or at least before articulating service or manufacturing products. Doing so will provide a clear picture of traffic in the market, and point out your strengths and weakness.
In the global market, market research is taken as an expert’s advice. Hence, the role of market research in B2B marketing is considered quite significant. This research report acts as a decisive factor and enables organizations to tap hidden opportunities. As a result, many B2B companies often refer to these research reports to stand out in their niche by taking unique decisions and drive revenue.