Are you interested to know why it is significant to apply market research? Do you want to know how and when to use it? Are you planning to develop a new product but confused about your customer’s needs? If you are answering yes to the questions above, you will require your customer’s help. Before that, you will need to gather the data. In such cases or any other relevant situation in the business, market research helps you gain the answers you need.
We will discuss in detail what market research is, the benefits, and some examples.
After conducting direct research with the target customers, the process of evaluating the viability of a new product or service is known as market research. With this method, the firms or businesses can discover the potential customers and know their opinions to make relevant decisions. The significant purpose to conduct market research is to analyze a market-linked with a specific product, to decide how the customers will react to that particular product or service. The information collected through market research is helpful to dictate what are the requirements to suit the audience’s needs.
Three Significant Objectives of Market Research
Market research is vital to attain the following three objectives:
- Basic to proper planning
To initiate the marketing plans and policies successfully market research is a dire need.
- Lowering Marketing Costs
Marketing research is critical as it provides the businesses with ways to reduce distribution, selling it advertisement costs.
- Finding New Market for the Products or Service
Marketing research is significant to discover new markets for the product and maintain the existing one simultaneously.
Significance of Market Research
If you want to satisfy the customers and upgrade your business, market research is the best way to take a step towards the same. Read on to know some of the vital significance of marketing research.
Market research is responsible for providing minute information related to the existing and new products and their value in the market. Thus, businesses can plan accordingly.
Prioritizing Customer Needs
The market research is customer-oriented and examines their tastes and preferences. With the aid of the research the firms can strategize and plan products or services that suit the customer’s needs.
Staying Ahead of Competitors
In these difficult days of thorough competition, market research will help you and your business stand ahead of your competitors.
Looking for market research companies in India? We have compiled a list of the top companies here.
Market Research Methods with Example
Depending on the market methods and tool requirements, market research types are as follows.
1: Primary Market Research
A combination of both qualitative and quantitative research, it is a process when the firms connect with end consumers or utilize a third party to conduct relevant research and gather data. The data acquired might be nun-numeric or statistical. Primary market research can bring out two types of information:
- Exploratory: it is open -ended, and is conducted through a detailed interview primarily with a small group to address problems.
- Specific: it is exactly to the point and used to address issues after being identified through exploratory research.
Some common qualitative research methods are:
Focus group is a significant qualitative research method, where a small group of people respond to remote surveys. With Focus groups it is easy to collect data without even connecting with people face-to-face. This method is often expensive, as complex data is collected through the process.
Suggestive from the name itself, this method involves face-to-face interaction between the interviewer and the respondent. The questions are mostly open-ended to draw pin-pointed feedback from the answerer. The experience and capability of the interviewer is significant here to gain suitable responses.
Ethnographic research isn’t bound to a particular span, it can be within a few days or continue up to several years. To carry out this in-depth research process successfully, the interviewer needs to adjust himself with the natural environment of the respondent, i.e., a city or a remote village. Geographic location plays a significant role in ethnographic research.
Secondary Market Research
Secondary market research relies on information from external sources like government sectors, media etc. The information comes up in books or popular magazines, newspapers, websites and so on. Here are the primary sources for market research.
- Public Sources
Public areas such as government libraries are a splendid way to collect free data. The concerned person can gather the relevant information free of cost.
- Commercial Sources
Commercial sources like newspapers, magazines, and media are expensive yet reliable sources to gather information.
- Educational Sectors
People merely consider educational sectors to collect information but it is the most trusted place to get the data from. In educational institutes, many research works are conducted, which is significantly higher than any business firms.
Advantages of Proficient Market Research
Let us list the significant advantages of efficient market research.
- Making knowledgeable decisions
Management plays a critical part in an organization’s growth. With the market research tools, the management can take suitable business decisions according to the results obtained. Having a thorough idea about the market trend and customer’s preferences, needs efficient market research techniques.
- Acquiring correct information
The businesses gather accurate information through market research. It can prepare for the future accordingly and be ready for any mishap that might take place. A proper knowledge about the market and ongoing trends helps the organization to stand ahead of its competitors.
- Dictating the market size
A researcher can assess the market size that should be covered to sell a particular product or service to make profits.
- Picking the perfect sales system
With market research, it is possible to choose an appropriate sales system as per the market need. Accordingly, the product is placed in the market.
- Examining customer communication processes
Market research acts as the bridge of communication with the existing potential customers.
- Fruitful Business Investment
Indeed, it is a superb investment for any business. The precious information obtained through market research helps the firms proceed towards the right direction and gain profitable sales.
5 Vital Market Research Tips for Businesses
1: Define the Research Objective
Before you start conducting market research, it is significant to have a goal first. Ask yourself a few questions. Do you want your one-time clients to be regular customers? Or are you planning to engage more traffic to your site? Or, do you want to upgrade the sales? Having a particular objective will help in conducting smooth market research. It will be also helpful in gathering the relevant information.
2: Learn about your potential customers
The primary thing in business is satisfying customers. You must remember, your product or service is serving a particular set of customers. You need to find out how to present the service before them and ways to communicate to convince them. Above all. You must have an idea about the products that suit their needs. Defining your customer’s taste and preferences is a key task to be done before setting out for market research.
3: Learn About the Non-Targeted Customers too
This point is very interesting. You must be sure of the customer base, whom you do not serve anything. Having this idea helps you focus perfectly on the target customers. If you can not identify the core customers for your business and try to satisfy everyone, you will only confuse yourself. Therefore, it is vital to have a clear conception on whom you are targeting and who are not in the list. It will be helpful in conducting an in-depth market research.
4: Examine the Competitors
Here comes a healthy part of market research. You can keep an eye on your competitors’ performance or even visit their office. For example, if you run a digital marketing agency, visit the other nearest hub in your locality. Take a look at things, try to understand how things are being carried out. In this way, you can address some areas of improvement in your own business and make the modifications accordingly.
5: Direct Communication with Target Customers
The most valuable market research tool is customer survey. It will help you understand what’s going on inside them or how they are reacting to your products or services. Even in case of rude feedback, try to stay calm and handle the same with patience. You can simply create a survey and put questions like:
- What are the customers thinking about the service
- If they are enjoying it
- Any thing they think can be improved
- Anything new that they would like to see
The answers to these questions guide you to strategize accordingly.
Significance of Market Research in Every Business
As evident from the above discussion, market research is a valuable way to get an insight into the customer’s thoughts. The goal is simple: to prepare your organization or business with the right strategy.
- Competition: A report from Business Insider suggests, 72% of small businesses are interested in increasing revenues. Market research will help you to understand the competitor behavior and their areas of expertise. Examining the positive and negatives of the competitors, you will know how to place your product and draw customer attention.
- Customers: Market research is insightful to help you understand the customer’s buying habits. You can make a list and analyze their preferences and how much they are desiring to spend. Most significantly, you will be able to know what exactly will make them buy your products.
- Opportunities: Market research even helps you to identify the potential opportunities. Generally, the taste and preference of the customers change with time or situation. Through research you can find ideas of producing something new that can meet the consumers needs. It can open the door to new opportunities for your business.
- Forecast: The national or local economy puts a significant effect on the businesses. Through research it is possible to know what the customers are thinking and if they are optimistic regarding the economic direction. Keeping a pace with the situation, things can be adjusted. Suppose, you are about to launch a new product but postpone it owing to the then economic scenario which is emerging to be negative.
That’s all for this blog. I think I could make the significance of market research clear. See you soon in the next blog, where we will discuss the steps to conduct efficient market research.