Discuss the reasons why businesses carry out market research. - Leaving Cert Business - Question 7(A) - 2010

Understanding competitors is a critical aspect of market research. It reveals information about the competition within the market, including their products, market shares, and strengths and weaknesses. This knowledge helps businesses to better position themselves and tailor their products to meet market demands.

Market research assists businesses in making informed decisions about their marketing mix, which includes the product, price, promotion, and place. Knowing how to optimize these elements can significantly enhance product sales and overall market presence.

Market research enables businesses to understand consumer behavior better. By analyzing why consumers buy particular products and what influences their purchasing decisions, businesses can tailor their offerings to meet customer needs effectively.

Conducting market research mitigates the risks associated with launching new products or entering new markets. It helps identify potential pitfalls by gathering feedback from the target audience and allows businesses to adapt their strategies to minimize risk.

Lastly, market research aids businesses in estimating likely sales for their products. By analyzing market data, researchers can provide valuable forecasts, helping businesses to plan their production and manage their resources better.