Market research guides your business decisions by giving you insights into your market, competitors, products, marketing and your customers. By enabling you to make informed choices, market research will help you to develop a successful marketing strategy.
Market research helps you to reduce risks by getting product, price and promotion right from the outset. It also helps you focus your marketing resources where they will be most effective.
There are two main types of market research – quantitative research and qualitative research. Quantitative research focuses on coming up with numbers: what percentage of a population buys a particular product. It is gathered using surveys and questionnaires. You can do
- Quantitative research focuses on coming up with numbers: what percentage of a population buys a particular product. It is gathered using surveys and questionnaires. You can do simple quantitative research yourself by talking to your customers. In-depth quantitative research can be used to identify markets and understand consumer profiles – important if you’re launching a new product or service.
- Qualitative research gets behind the facts and figures to find out how people feel about products and what prompts them to spend. Researchers use questionnaires and focus groups for intelligence gathering.
You can also do basic research with existing surveys and business data/information. Much is available online and from industry organizations. This information provides data on market size, sales trends, customer profiles and competitor activity. Your business and customer records also provide a wealth of information, such as purchasing trends.
Market Research can also help with forecasting by helping you assess trends to anticipate how the market may change. This is a vital step towards identifying new market segments, developing new products and choosing your target market.
Market research needs to be a planned part of your marketing. Even established business need to stay in touch with your customers’ needs as well as market trends and your competitors. Market Research can measure the effectiveness of your own marketing, giving you information about attitudes to everything from packaging and advertising to brand name awareness.