Market research to the success of a new business Essay

Market research to the success of a new business - Essay Example The market research processes help the entrepreneur of the venture to gather relevant information regarding the external business situation based on which he or she can take the suitable marketing and management decisions for the business. The carrying out of a suitable market research can be done through the internal personnel of the company as well as through a third party market research company. Whatever the avenue of the market research is, the results of a market research are expected to add value to the probability of success of the business in the market through an understanding of the external factors that are likely to affect the success as well as the continuity of the business Market research is an essential strategic management tool for the creation of a feasible business plan that would enable a new business venture to initially create a place for itself in the highly competitive business segments and to thrive in the market in the long run as well. Market research conducted for a start up venture is essentially the process of becoming knowledgeable and gathering information about the target market of a new business (Malhotra, 2002). A market research process may serve four types of primary objectives which are Predictive: The predictive view is aimed at analyzing the future trends, opportunities, risks and requirements of the market which helps the company to decide on its priorities and set its objectives and strategies. Descriptive: The descriptive view of market research considers the explanation and description of the existing market situations and aims at identifying the core reasons driving the present market condition (McDonald, 2007). Market research helps a business to understand the context for the new business, accurately define and target the appropriate customer segment, verify whether there is an advantageous level for demand for the products and/or services of the business in the selected market, collect