There are a few reasons why market research agencies are seen as a must for big businesses. Most of them have to do with mitigating risks and identifying new opportunities.
Defined broadly, market research is the act of collecting information about consumers — specifically, information related to their wants, needs, and preferences.
Different agencies offer different services, but big international agencies like Kadence US will usually also look into the size of the market, how strong the competition is, what opportunities are available, and more, as can be seen on https://kadence.com/en-us/.
As you can imagine, all that information is worth its weight in gold for a big corporation. And having access to an agency that specializes in analyzing and understanding different markets is very valuable in a variety of circumstances.
Say a big company wants to launch a new electric car. Market research would allow that company to start designing the car, already knowing how many potential buyers are out there, how much they are willing to pay, what they consider a must in a new electric vehicle, and more.
Another good example is companies that are looking to expand abroad. There are plenty of horror stories of companies that failed spectacularly because they didn’t understand a foreign market, failing to account for economic and cultural differences between countries. Market research agencies can help businesses understand foreign markets and advise them on how to tap into those markets.
For valuable markets like China and India, it’s not hard to find market research companies that specialize in helping western businesses find an audience in those countries.
In conclusion, businesses like market research agencies for the same reason that businesses like anything — these agencies help them make money. And it can help mitigate the risk involved in a variety of projects, including product development and market expansions.
