Why Bangladeshi companies need to invest more in market research
Businesses in Bangladesh need to wake up to the fact that to prosper in today’s competitive environment, market research and consumer insight are key
In today's highly competitive corporate environment, conducting market research and gaining customer insights are essential for building effective marketing strategies. However, due to a lack of extensive market research and a poor grasp of consumer behaviour, businesses in Bangladesh find it difficult to reach their target audience.
Collecting information and gaining new perspectives on customers, other businesses, and the market are the primary goals of market research. It offers significant information about market trends, consumer preferences, and the methods employed by competitors. The results of in-depth market research allow firms to make decisions based on empirical evidence and adapt their marketing strategies accordingly.
Bangladesh needs holistic research and research funds to realise our economic growth potential. Businesses can gain an advantage over their competitors by delivering goods and services that resonate with customers, if they conduct thorough research and understand the requirements and preferences of their target demographic. Unfortunately, market research is frequently relegated to a secondary role in Bangladesh's business culture.
When performing extensive market research, firms need more experience as they at present operate with limited resources, a lack of experience, and time constraints. Instead of basing their decisions on concrete data, many firms rely on assumptions and intuition, hindering their capacity to target their audience and allocate resources intelligently and effectively.
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Businesses cannot completely understand the dynamics of the market as well as the preferences of their customers, if not enough attention is placed on market research. Market research and customer insights need to be improved in the marketing methods used in Bangladesh.
Businesses can generate captivating messaging that resonates with their target audience if they have in-depth insight into the behaviour and preferences of their target audience's consumers. Because of a lack of this, marketing programmes end up being unsuccessful; marketing resources end up being misallocated, and opportunities to engage with potential clients are lost.
Companies can end up investing in marketing channels or techniques that do not effectively reach their intended audience. This can result in poor returns on investment and a decrease in the brand's value. Some companies in Bangladesh's electronics sector have come up against substantial obstacles due to further market research requirements.
For example, a local electronics manufacturer who recently introduced a new product, did it without extensively researched customer preferences. As a direct consequence, the product did not live up to the target market's expectations, resulting in low sales performance and became detrimental to the company's reputation.
In Bangladesh, fashion brands need to recognise the preferences of their customers and successfully align their product offerings with current market tendencies. Without that, brands will experience a decrease in sales, as well as a loss of market share to competitors who have a better understanding of their respective target audiences.
Companies in Bangladesh will have to make research their number-one priority. The planning process for a company needs to include some sort of market research component. Businesses should set aside a specific budget for research activities to acknowledge the necessity of obtaining accurate and up-to-date data regarding the market and customer behaviour.
By forming partnerships with organisations specialising in market research or academic institutions, businesses can obtain access to the knowledge, expertise, and resources essential for the collection and analysis of data. This can assist firms in fulfilling their requirements for data collection and analysis.
In addition, businesses that invest in training programmes for their employees to improve their research abilities and keep up with the latest trends in their field, might gain a significant competitive advantage in the race to sell their goods or services.
Businesses in Bangladesh will have access to various benefits if they prioritise conducting market research and gaining customer insights. They can recognise unexplored market prospects, comprehend shifting consumer tastes, and devise successful marketing tactics. They will be better positioned to build stronger customer relationships, design more targeted marketing efforts, and effectively explain their value proposition when they understand the population they are trying to reach.
The achievements of companies that have already integrated market research processes into their operations should motivate them, since they demonstrate enhanced marketing outcomes, higher consumer involvement, and sustained growth.
Dr Mohammad Shahidul Islam is an Assistant Professor of Marketing at BRAC Business School, BRAC University.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.
