Business organizations in the past opted for market research that included paid surveys, observational studies, study groups and in-depth interviews to enhance their strategy and improve sales. Small business owners could not afford the cost of these services and hence they never got a chance to rise in competition.

Even though technological advancement has made it easier for entrepreneurs to carry out market research, small business owners are still ignorant about its importance. Here are 3 reasons why you must opt for Market Research right way:

1. To Understand Market Performance: Market research helps you gain an insight about your business, encourage innovation, understand market trends and surge ahead in competition. It will also aid you in identifying the buying patterns of customers — for example, the manner in which consumers prefer to buy goods with respect to timing, frequency and price.

2. Helps You To Analyze The Competition: Market analysis also helps you understand the performance of your competitors through various modes such as social media, forums and mobile surveys. You can compare your competitors’ market share with yours, find out at what speed competitors are bringing out innovative products in the market and so on.

3. Hone Your Marketing Skills: Market research enables you to understand what customers think about your products as well as about similar products. Based on your survey you need to incorporate changes in your marketing plans. At times, slight changes in the color or design of your logo will improve your company’s performance. Small business owners often get intimated by market research. But, it has become an integral part of the business world and will help you to establish your small business firmly in highly competitive business environment.

Jayden Samuelson is an online marketing expert and a regular contributor to Promo Direct. He likes reading articles on online marketing industry and has been a part of discussions on many boards and forums. Jayden Samuelson can be followed on Google+, Twitter and Facebook