What is market research?waheed
What is market research?
Market research is the process of gathering, analyzing, and interpreting information about your business’s buyers personas, target audience and their location, what’s trending in your industry, needs of your business’s target market, and the industry as a whole.
There are some incentives that encourage you to implement a Market research:
1- determine the feasibility of new business opportunities.
2- Improve your current business and find some innovative ideas.
3- launching a new product or entering a new market.
4- creating successful promotional campaigns.
5- Take advantage of marketing trends.
What are the types of Market research?
There are two types of market research: primary data research and secondary data research.
1- Primary Research:
Primary Research is first-hand data gathered information on your market and its customers, you either collect the data yourself or hire someone to do it for you. When you carry out primary research, you can gather two basic types of information: exploratory or specific.
the data collected can be qualitative data (non-numerical data) or quantitative data
(numerical or statistical data).
Qualitative research data involves semi-structured or unstructured data collected through some of the commonly used qualitative research methods like:
Focus groups: Focus group is one of the commonly used qualitative research methods. Focus group is a small group of people (6-10) who typically respond to online surveys sent to them or participate in a discussion of a predefined topic led by a moderator
One-to-one interview or In-depth Interview: As the name suggests this method involves personal interaction in the form of an interview Carried out either by phone or face-to-face.
Observation: It involves watching or recording video content to know how consumers interact with a product or service in its nature.
2- Secondary Research:
Secondary research is all the data and information that’s already compiled and organized for you, This helps to predict and analyze the current situation in terms of competition.
Sources of Secondary research for a collection of information:
Internal sources :
Internal sources are already existing information that has been collected within the company in the company’s database or file system.
Examples: Balance sheets – Profit and loss statements – Inventory records – Sales figures
External sources are those sources collected outside the company by other businesses or people.
– Public sources: government agencies, chambers of commerce and Public libraries and etc.
– Commercial sources like Local newspapers, magazines, journals, television media.
– Educational Institutions: Executed research projects inside universities and educational institutions
How To Do Market Research?
Targeting everyone will lead you to reach no one. It’s a concept that is not too difficult to understand but is all too often ignored by companies in their marketing efforts.
Define your buyer persona:
Buyer Persona is a semi-fictional exemplification of your idealistic customer based on market research and actual data about your existing customers.
Some of the key characteristics you should be keen on including in your buyer persona are Age, Gender, Location, Job title(s), Family size, Income, and Major challenges
once you gathered Information related to your buyer persona.
Implement the 3 stages of the STP model of Marketing:
The STP model consists of three stages that help you analyze your marketing and the way you deliver its benefits and value to particular groups.
segmentation is the gathering of your consumers in segments based on some sort of standard:
1- Demographic – You segment consumers by personal characteristics such as age, gender, marital status, ethnicity, education, occupation, etc.
2- Geographic – By country, region, city, etc.
3- Psychographic – Their personality, values, lifestyle, attitudes, interests, and opinions. Among the strongest sources that form these factors are families, regions, schooling, and society.
After you’re clear about your segments, your next step should be to aim at each segment that you think will be profitable for your venture.
You must ask yourself these questions:
Is this segment is large enough to spend my time on it?
Does this segment have the ability to be profitable?
What type of competition will I face when I target this segment?
The last step of the STP marketing process is Positioning. Here, you need to figure out how you’re going to place your product/service in front of the target segment, you need to have your own unique selling proposition (USP) that your competitors can’t or don’t offer.
For example, When hearing a word LEXUS (Luxury), BMW (the power of engine), Nike (the quality of sportswear)
What are the mistakes to avoid when doing Market research?
1- Applying only Secondary Research:
primary research permits you to target your efforts and understand customers’ behavior in real-time.
2- Applying only primary market research:
Another popular mistake that must be avoided when doing market research is applying only primary data research. Businesses often make the mistake of spending so much time on primary research that they forget that using secondary sources for data could also be more useful and saves, ore time. Secondary research may offer some data and statistics for free.
3- Using only the web for researching:
It is true that the internet or the web is the most popular database for a wide variety of information but just depending on it and not using any other source could prove to be a big mistake as far as market research is concerned. One must remember that the internet may not always offer reliable sources and complete information. And, as they say, incomplete information is dangerous. Thus, one must always make it a point to try out other more credible sources such as government sources, previous business files, To save money, visit your local library, business center, or college to gain access to the quality information you need at zero cost.
4- Not being able to identify your target audience:
One of the most popular reasons for the failure of products, services, and business is the inability to know the target audience. While with some products, it is easier to reach potential customers but with some other products, It’s difficult to find the proper audience. For example – food products. But just because it is difficult doesn’t mean it is impossible. It is highly important for all business companies to know exactly who their target audience is and then focus their marketing and other efforts towards them in particular.
5- Not giving your customers the advantages or the incentives to communicate with you:
Consumers are intelligent and need to be given incentives in order to attract them. Asking consumers to respond to a survey without giving them any benefits can be a big mistake. But, on the other hand, offering the customers a free coupon or a free voucher in return could be so helpful and have a high impact.
6- depending on Family Focus Group:
A common mistake of new businesses is asking those close to you for feedback on your product and service like your family or friends. Those who know you will want to guard your feelings and it can be the worst selection for your focus group or group interviews. You need to talk to real customers about the advantages and disadvantages of your offer and you can use your friends and family as support, not in market research.
Why Does Every Business should conduct its own market research?
1. Identify possible new customers.
2. Understand your actual customers by using market research.
3. Establish realistic targets for your business.
4. Improve and develop new, effective strategies by understanding your market.
5. Solve your biggest challenges for your business.
6. Prepare for possible business growth and expansion by getting the right information.
7. Identify new opportunities by knowledge gaps in the offer.
market research isn’t just for new businesses but already established Businesses of all shapes, sizes, scope, industry, and experience levels can benefit from market research.