Market Research – Significance and Consideration
Technological advancement and social media evolution have made it hard for marketers to keep up with the pace. Fortunately, market research can help in collecting data associated with trends, customer behavior, and competitive intelligence. With this data, marketers can design a new product or enhance their existing item or create a go-to-market strategy for driving business growth. Businesses can gain answers to questions like –
- How does their brand stand out in the crowd?
- How large an opportunity does the market offer for their brand?
- Which ad campaign will suit best with their target audience?
- Which demographics will possibly invest in their products or services?
The significance of market research
It is risky to make business-critical decisions based on instinct. Market research offers data-supported evidence that helps to make decisions confidently. Therefore, market research –
- Steer business strategy.
- Validates company direction.
- Helps to avert costly glitches.
- Builds credibility with supportive data facts.
- Shows the market trend.
Market research types
- Primary – Collect data for the first time and decide to do quantitative or qualitative research.
- Secondary – Research on already existing data.
- Quantitative – Collecting structured and numerical data for statistical analysis. A great option for colossal sample size.
- Qualitative – Collecting and exploring unstructured data or study specific topics to understand respondent’s opinions, thoughts, and experiences in detail. It is good for a small sample size.
- Full service – A vendor is paid to perform the market research, which is costly.
- DIY – The Company does its own market research and makes use of online survey platforms or tools. It needs an expertise level to pull the research project efficiently.
Now, it is time to understand some essential tips when considering market research for your organization.
Crucial tips to remember during the market research process.
Research is an enduring process
Market research helps to understand your target customers’ needs and preferences. With consistently evolving society, customer’s need also continues to change. To align with customer needs ongoing research is essential. It will help to identify and evaluate the patterns and trends. Continue to monitor customer behavior to gain a competitive edge and stay ahead.
Never ignore opportunity costs
Opportunity costs are not only associated with business decisions. In research, you can miss out on opportunities like taking an alternative direction to increase more profitability and potential than your current situation.
Ward off from shortsightedness of research method
There are multiple research methods and each one differs. Never limit yourself to a single method for answers to your research objectives. Choose several actionable courses like a focus group, secondary data review, and survey.
Determine your purpose before starting research
For market research success, the initial step is to define your goals. It will help to write a relevant question list. The main purpose in mind ensures that the survey is not a waste of resources.
Understand your customers
Tracking customer’s purchases does not give you an idea of their overall behavior. Humans are emotional and reasoning beings. Their emotions and action has to be measured to properly understand their behavior. With this information, you can design a solid marketing strategy.
Ongoing market research helps your business grow!