Market research is the process of understanding who your business is targeting so you can better position your marketing strategy. Marketers use geographic data, demographic information about customers and potential customers as well as psychographic factors to understand their target market’s buying habits in order to make adjustments that will increase profits while still appealing to consumers. For instance, after conducting a survey on demographics for the company's newly designed product line - such things as age range, income size etc. They may find out that there are more married parents than single adults with no children living at home over 25 years old which means it would be beneficial if this was reflected in advertising campaigns or even pricing schemes since these families represent a significant portion of sales opportunities but were not being marketed effectively enough.
Role of Market Research in a Marketing Strategy
Marketing is like a game of chess. You don't know how the other players will move, but you have your own strategy that needs to be executed with precision and patience in order for it to work out as planned.
Market research allows you to investigate who your target audience is and how they feel about a product. It also helps you understand the strengths and weaknesses of your competition so that you can create an even better marketing plan.
Types of Marketing Research
Everybody starts with a different approach to Marketing research, as every product and its journey is different, it’s process of marketing research will also be very different. To understand which type you should choose, we have made the types very easy and avident below;
Primary market research is the most in-depth kind of market research available because it involves not only gathering data but also creating and manipulating that specific information. It has any type of data that you are gathering first-hand for your company. Focus groups and interviews can provide a wealth of information about what would make the most impactful changes in your marketing strategy, while surveys give clients an opportunity to voice their opinions on existing products or services.
Secondary market research is a great way to get the macro perspective of your marketplace. By looking at data collected by other businesses and organizations, you can find out information that might not be available in primary sources. The benefits are that secondary research includes other players in the market as well as utilizing more useful sets of data than those found within our own internal records. It can help you make sense of what's happening in your industry and how the competition is doing, as well as give you an opportunity to take everything that's been tried before and use it for yourself. For example, if there are 10 other companies also researching iPhones but they're not talking about them enough on their own blogs or Twitter feeds then surely those keywords will show up more prominently when we search secondary sources like articles from professional bloggers who cover technology products all day long.
Market Research Subtypes
Furthermore, professionally, the following two types of marketing research are made of more use,
- Qualitative research
- Quantitative research
If you are trying to find out what colors people prefer for your new shirt line or how comfortable they feel in different types of footwear; then qualitative data may be much better because there would not need as many participants and their feedback could be easily interpreted without having any statistical analysis done.
Let's say that you're making sure those shoes will sell well with women over 40 years old who have children under 18 - this might require some heavy statistics work so we'll want something like quantitative information since fewer numbers can lead to false conclusions about market segmentation needs. Survey research typically involves closed-ended questions that are quantitative in nature and used to test or confirm hypotheses, assumptions, opinions, or behaviors. This is done by quantifying the variables of interest using numbers and statistics from larger data samples.
Marketing research Methods
Below are some commonly used marketing research methods widely;
Research interviews can broadly be classified into three categories: the unstructured interview, structured interview, and semi-structured or ‘middle way’. The unstructured approach allows for a free-flowing conversation on any given topic whereas in the latter two cases you have to stick to your protocol of questions with no deviation possible. However, if there is something that has not been asked by either party then it should be expressed as neutrally as possible without drawing conclusions until all parties are satisfied.
Surveys are an effective way to build customer loyalty and satisfaction. They help you determine what your customers want, need, and value most in order for them to feel engaged with their product or service. Surveying is also a low-cost method of gathering information about potential new products, services, and markets that would best suit the needs of your business's target audience. Surveys increase customer engagement by letting companies know what they should do next on behalf of their consumers - which means increased profitability.
Crowdsourcing is a great way to go about surveying the market. This method allows users to add their own ideas and comment on existing ones, which gives it more diversity than other methods that only allow for predetermined questions.
Focus groups are a great way for businesses to get feedback on their product or services. Groups of 5-10 people with common characteristics discuss an issue while the moderator records what they say and takes notes about how each person thinks, which helps them understand where improvements can be made in future products.
Market segmentation is the first step in creating your company's target market. Creating a specific, targeted group of people to sell, increase sales, and make marketing more effective.
Market research can often be overwhelming for new entrepreneurs. One way they may use this information is by grouping customers into categories based on their needs or desires from products/services (age groups, sex groups, occupation type). This process helps them determine what kind of customer would find their product most appealing while also identifying potential competitors who are targeting those segments already.
The competitive analysis is a perfect way to get an understanding of what's going on in your market. This will help you understand the strategies that have been successful, as well as those which haven't worked out so well. With an insightful look into the actions taken by your competition, it becomes possible not only to learn from their successes but also be aware of any mistakes they might make as well.
Struggling with market research? You’re not the only one. But don't shy away from it—with a little time and effort, you can turn into an expert researcher who knows how to spot valuable marketing data for your business that will make or break its success.
Hope you find this article helpful. For any further queries or information, you can reach out to me at [email protected] and we will discuss it further.