Why is market research so important?
To begin, let’s define “Market Research.” It’s the process of obtaining, analyzing, and interpreting data in order to find solutions to marketing issues. Our company uses market research for a variety of purposes, such as analyzing whether a new product can be successfully launched prior to investing time and money in it. In order to create an effective marketing plan, you must conduct market research. When done successfully, it can help you better understand your target audience’s needs, as well as what important messages you should be conveying and how to express those ideas.
Do you have the ability to Conduct Market Research?
Ultimately, the goal of market research is to get profound insights, and there are a variety of methods you can use to do this. Among the most frequent types of market research are:
- Brand Analysis
- Effectiveness of a campaign
- Analyzing the Competition
- Surveys of the Public
- This is a study of customer segmentation
- Design of New Products
- Testing for ease of use
Forms of research in market
There are two primary forms of research in market research: primary and secondary.
Primary Research: often known as “field” research, this type of research collects new data that has not been previously collected.
Secondary Research: or “desk” work, is the process of acquiring data that has already been organized and prepared for you. It comprises government-funded research, textbooks, historical records, and statistics databases.
Focus groups, in-depth interviews, and ethnographic research are all examples of qualitative research, which is an exploratory strategy that includes these types of activities as part of the field research.
Surveys, polls, and questionnaires are examples of quantitative research methods that employ objective measures and numerical analysis to gather data.
Market Research: How to do it
- Prior to conducting the research, establish certain objectives and targets.
- Determine your audience and market size.
When conducting research, make sure your sample size is reflective of the people you’re trying to study. This means that the study sample should be large enough to accurately reflect the larger target audience.
Select appropriate market research and data collection methods based on the goals of a particular project.
Regardless of the data collection strategy you use, you must first formulate your study questions.
It’s important to make sure the questionnaire isn’t biased or skewed. Maintain your objectivity at all times.
Incorporate questions that can be used to verify other areas of the survey.
Open-ended questions should be included in a qualitative focus group to allow respondents to freely discuss topics that were not included in the questionnaire.
Interrogate and decode the findings once the data has been collected using strong analytical skills.
Do not treat the results of your study as a stand-alone entity. Validate your conclusions by looking at the big picture (such as global linguistic, cultural, economic, and political trends).
The effectiveness of market research
Yes, in a nutshell. Plenty of products and businesses have failed because little market research was conducted at the outset. Without proper research, launching a new product or exporting to a new market is a formula for catastrophe. Before making such a jump, you need to know your clients and your competition inside and out.
As more businesses expand their worldwide reach, it’s imperative that they understand the cultural and linguistic variances that may exist in the regions to which they are exporting. As a result, the outcomes of research in one area may not be repeated in another. “Finger-Lickin’ Good” is a perfect example of this, as is KFC’s slogan “Eat Your Fingers Off” in Chinese.
Market research can help us decide our marketing strategy and target our marketing efforts, but it should not be viewed as a stand-alone plan or tactic. Take a look at “New Coke” from the 1980s as an example. Research and focus groups were overwhelmingly positive about the new Coke flavor, but they overlooked the importance of customers’ brand attachment and nostalgia for the original taste. Before making a final business choice, it would have been prudent to examine the influence on the surrounding environment and the company’s brand.
Used correctly, market research is a powerful tool to help minimize the risks involved when making key business decisions.
Your marketing approach can benefit from market research:
Insights and data gleaned through market research can have a big impact on your company’s marketing strategy. In-depth knowledge of your consumer and your competition can be gained through this process. Your product or service’s customers can be identified by conducting market research. This will allow you to better understand who is buying your product or service, who isn’t, what motivates them, and whether or not they are brand loyal.
In the same way, understanding the broader market situation can help you find new company prospects. Because of this, it’s critical to stay abreast of consumer preferences and industry trends in order to improve your product or service.
However, despite the various circumstances that contributed to Nokia’s spectacular fall from grace, the company failed to analyze and understand the shifting market trends. They were lagging behind their competition, customers, and technological advancements when it came to introducing new products to the market. Samsung, Sony, and Apple’s iPhone swiftly became some of the world’s most popular electronic brands.
In order to create an effective marketing plan, it is obvious that conducting market research is essential. It’s a terrific resource for learning about your company and the industry in general. Using market research, you may find out how your current and potential clients perceive your organization, as well as where there may be room for improvement. When putting together a marketing plan, this knowledge is invaluable. Being well-informed about the market can reduce the risk of making critical business decisions.