When starting up
Many firms undertake market research when they are starting up, or before they officially start operations. Initial market research helps firms get an idea of what kind of products/services they should market, what their target customers like or dislike and their competitors, among other things. This kind of research helps firms determine whether there is a demand for the products/services that they wish to offer, and whether it would be feasible to start their venture or not. Also, it helps firms get an idea of the aspects that are lacking in the products/services offered by competitors, so that they can capitalise on them.
To follow up
Several firms undertake market research to follow up on the acceptance of the new products/services launched by them. Such research is usually undertaken after about six months or a year of the launch of new products/services by a firm. It helps the firm know of how its products/services are being perceived by the customers, what they like and do not like in them, and how they are faring vis-a-vis the products/services offered by competitors. Follow-up research helps a firm determine the areas in which its products/services need to improve – be it packaging, promotion, quality, variety, distribution or pricing – and take decisions accordingly.
When introducing new products
As a firm grows and feels the need to introduce new products/services in the market, it usually undertakes market research. Such research will help the firms determine the demand for the new products/services in the market, allowing it to take informed decisions about various aspects related to them, like promotion, packaging, pricing and distribution.
When entering new regions
Many firms undertake market research before entering new geographical locations or starting new stores. This research helps the firms determine whether there is a demand for their products/services in these new locations, or whether opening the new stores would be feasible. It enables the firm to take informed decisions about their new product/service/store launch.
Continual market research
Some firms prefer to undertake market research on a continual basis, to keep themselves constantly updated about their competitors, their customers’ tastes and preferences, and issues in their products/services, among other things.