Why is market research so important to a jewelry company? We could also ask: what the value of information is to any jewelry organization? The answers really can be invaluable. Market research is important because jewelry products can be created that are more focused and well targeted. Market research helps a jewelry business more effectively communicate with targeted audiences. Market research can identify opportunities and help better manage risk.
The American Marketing Association defines market research as “the systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area.” An organization can also utilize market research to measure progress and establish benchmarks. Improved competitiveness is another derivative of market research. Knowing and better understanding niche markets only come from marketing intelligence. Analytical evaluation of research provides management with the tools needed to make more effective decisions. Marketing research is often achieved through six steps:
1. Defining the problem in a way which best suits the company.
2. Creating a plan which will capture the process of collecting the information.
3. Collecting the information efficiently.
4. Utilizing the information statistically.
5. Presenting the findings to upper management.
6. Finalizing a decision.
Too often jewelry companies use a “me too” approach. While copying a competitor truly is flattering, it can be very costly when the wrong products, processes and programs are duplicated. Market research can help jewelry managers gain the right vision for the right reasons.