Many businesses think of marketing as simply posting on social media, having great designs, maintaining a strong online presence, or using striking signage. Much like fishing, you throw out a line and wait for the catch of the day.
In a global environment where people are struggling with information overload and too many choices, market research becomes the tool that helps you decide on the correct bait, the right conditions, and—most importantly—the right audience to target.
As PW Skills (2026) puts it:
“Launching a product without research is like flying a plane without a radar. You might stay airborne for a while, but you won’t see the mountain ahead until it’s too late.”
What Is Market Research and Why Is It Important for Your Business?
Market research is the process of gathering, analyzing, and interpreting information about a target market, customers, competitors, and industry trends to support business decision-making (Hayes, 2024).
A study by Survey Monkey (2026) found that 70% of new businesses fail after they open their doors. One of the main reasons is a lack of understanding of the target market. If you do not understand your target market, you will not know:
a) What products will satisfy their needs
b) What messaging will attract them
c) How to structure your pricing for the demographic
d) How to build customer loyalty and define your ideal loyal client
e) How to improve your offerings and business operations
In essence, market research helps you develop your business, reduce risk, understand your competition, and make informed, data-driven decisions. It also enables you to identify new trends and opportunities. As Survey Crest (2026) states, this allows you to tailor your offerings to a specific market.
Real-World examples of Market Research in action
In 2010, two young entrepreneurs launched Burbn, a location-based app that allowed users to check in, make plans with friends, and share photos. Shortly after launch, they realized the app was too cluttered and could not effectively compete with Foursquare.
After re-evaluating their product, they stripped away most of the features and focused solely on photo sharing, likes, and comments. That simplified app became Instagram—a clear example of how understanding user behavior can drive success.
Similarly, in the early 2000s, LEGO faced declining sales and financial losses. Through effective market research, the company discovered it had moved too far away from what children and parents valued most: creative, hands-on building experiences. They refocused on its core strengths, collaborated more closely with customers, and developed successful product lines that restored its legacy and reputation to how we know it today.
How will the future of Market Research in South Africa look like?
Forbes (2026) highlights that key market research trends include real-time feedback and evidence-based insights. These approaches will be essential for businesses to remain competitive in a rapidly changing market.
Need Help with Market Research?
If you need assistance with market research, feel free to contact The Shared Services Company at:
📧 sales@thessc.co.za
Reference List:
Forbes Technology Council (2026) ‘7 market research trends to watch for in 2026’, Forbes, 2 January. Available at: https://www.forbes.com/councils/forbestechcouncil/2026/01/02/7-market-research-trends-to-watch-for-in-2026/ (Accessed: 3 June 2026).
Hayes, A. (2024). Market Research: What It Is and How to Do It. Investopedia. Available at: https://www.investopedia.com (Accessed: 4 June 2026).
PW Skills (n.d.) ‘What is market research?’, PW Skills Blog. Available at: https://pwskills.com/blog/digital-marketing/what-is-market-research (Accessed: 3 June 2026).
SurveyCrest (n.d.) ‘Why market research is important’, SurveyCrest Blog. Available at: https://www.surveycrest.com/blog/why-market-research-is-important/ (Accessed: 3 June 2026).