The market research process includes collecting the data, recording it and analyzing about interested customers, competitors, along with current market trends. The data analyzed is used to create an effective business plan for launching new products and services in the market. The data is also used to expand the reach of the business to the customers in terms of product or service. The companies use market research data to estimate the area where most of the target population resides to increase their sales of the products and services offered. The market research conducts a study on many variables like location, age, gender and income level to assess the data of analyzing targeted customers.
Depending on the needs of the business, it always indulges in either primary or secondary research. As primary research, the team involves in exhaustive testing of different variables like focus groups. It includes survey tests, field tests, interviews tailored for a specific product to study the product positing in the market.
In secondary research, the team collects indirect information from the relevant sources of the new or existing products and is used to study the position of products in the market. The benefits of secondary market research are apparent with its methodology when compared to tailored primary research. In primary type research data is easily accessible and also affordable. On the contrary, the pitfall of secondary research is not specific to the product; the data collected here is prejudiced and tricky to validate.
Market research conducted by the companies aims to answer a few questions:
Market research will help businesses in many business-related aspects like information about both new and existing products. It also gives the detail of new business opportunities and helps learn how the customers will receive the new products launched by the business. With the data collected from market research, the business will also learn how the consumers will respond to the new product or service launched by them in the market. This way, a business can streamline their products and service in line with the consumer requirements in the market. They can decide on the products or services that can be halted when they are not popular among consumers and also improve the production of the products as per the needs of the customers to raise their sales. They can also make a decision, even the prices of the customers based on market information.
Market research is significant for the stability and growth of any business. Understanding the market will help the businesses provide the right products and services to the audience. You will be able to price your products accurate at the price which customers are glad to pay.
Running the business without market research is just like shooting in the dark. With the right type of market research, you will shine in the bright light in your target audience, and you are likely to be successful.
Helps you focus on important aspects
After conducting market research, the business will know important aspects to the audience that needs to be focused on are. One cannot make assumptions about the market without confirmation by researching the situations. This may help you find if your ideas are right or wrong.
Helps learn more about the audience
You may think you can pull it off, but if you do not know everything about your audience, you may commit mistakes. For ex: Coke company at once thought of bringing new coke into the market without learning about their audience, and this was an utter failure.
Helps you know the profitable path
After you learn about the market, you will be able to create a better product or service that is wanted by the audience. The audience will appreciate you for your ability to read their minds and will be willing to buy the products you are selling.
Helps your business adapt to current trends
Even when you are marketing the products to the same demographics, their views, morals, and thoughts change over time. This is the reason why companies have their existence since ages have to change their market plans and to advertise periodically as changes in the people continue to evolve.
Helps in the decision-making process
When you have the right information, your businesses will be able to make better choices for both you and your audience. Decisions made without information, assumptions, or wrong information turn to be wrong most of the time. Having the right information will make your choices right.
Helps in reducing risks
When you know what market is doing and what their wants are, it will lower your risk of mistakes and failures while introducing new products or services into the market. Why should you waste both time and money shooting in the dark while you can shine the light with your research and hit the target, right?
Whether you intend to start a new business or improve the existing one, you need to know your business condition in the market for which market research is the best way out. It is very important for the success of your business. Market research should be conducted before starting the business, and it should be continued throughout its life to reach your business to new heights. However, you should not commit the mistakes stated below.
Making use of Wrong research
Market research should always be conducted moving out of your expectations. You should not restrain yourself from the results that match your assumptions because you may go wrong in making business decisions. Even if you sell the products or services to the people who are similar to you and you being your target market, the other people in the target may not feel the same as you about the products you offer.
Excluding primary research
The size of the market, its performance, and other related information can be readily available from the secondary research. Also, you should get the information from your direct audience about your business, and this possible only through primary research. With this type of research, you will be communicated directly with the audience about your thoughts, feelings, and actions of your company. This will help your company make good business decisions.
No research on the competition
Your competition is key for any market research because they will sell products to your audience. You should know how they do it and with whom you are doing it, along with many other things related to the company will help you perform the better and standout competition. You need to differentiate yourself from the competition to win the market.
Using bad reference material
It is vital to understand what includes good research and whatnot. You need to know the legitimate places on the internet were to conduct research. You need to research on the scholarly articles on some university publications. You need to be careful in using these materials for your research exceptionally.
Not researching about the audience
It is important to get a list of the people within your target audience. Few activities like list building exercises, locating the audience in the competitor's group message boards. The more you will be able to communicate with the audience ask them questions right; you will be able to perform better.
Using outdated data
It is very vital while conducting market research. Even if the demographics of society stay the same, they may change or grow. Forex: Olay does not market its products to the audience in the old method dated back in the 1980s.Though the product did not change much, they have to market their product to their demographic in a different way, so that the audience is not offended. You should do it and avoid using outdated information.
Not using market research.
Many business owners don't make effective use of market research. People stick with their assumptions and move on in the business, which is a big mistake. After you conduct market research, you may know whether your assumptions or right or wrong
Not putting questions right
When you initiate market research, you should make sure you are asking questions right through surveys. Creating a good survey needs the right talent, and you can polish your skills. You should be able to frame your questions right. You can learn it by reading surveys, question mistakes, and know how to do it better.
Market research is a never-ending process. Even after you complete your first research before you start your business, you need to do it throughout the lifetime of the business. As it is said earlier, it is important even If market demographics don't change, the audience tends to change. They will use different techniques as opinions and outlook of life keep evolving. Market research helps you keep updated.
Market research is and an old and organized method for the companies to understand the needs and expectations of the prospective customer and also the performance of their products in lines with their needs and expectations of the audience. Though there are many methods in play to collect this data, the most commonly used methods include surveys, interviews, polling online, questionnaires, and focus groups.
Before investing in market methodology to collect some crucial data, companies have to know answers for a few key questions like who are their potential customers? What is the best way to reach targeted customers? What is the profile of a group of these prospective customers? What is the ratio of male/ female customers? And last, What is your estimated budget into it?
You can zero in the right method after you find an answer for all the questions below:
You should understand the customer database to know what type of customers that are purchasing your products. This understanding helps you choose the right medium to reach potential customers and get a good feel for your target market.
Media sources to reach the customers are plenty but finding the ones which your target customers rely the most upon is a bit tough play. Effective research will help you in this regard. As a part of the research, you need to pay attention to your target consumer behaviour or ask straight questions about their interesting publications, email letter they subscribe to, or about the type of emails they are interested in opening and reading. You can also ask about different associations and groups which they are involved in and know they are most listened to radio stations, watched television channels and much more.
Budget is, of course, a big constraint for many companies while investing in market research. To conclude on this question, you should compare the relative investment for your marketing needs while you use any one of the media. The best and most used method is “CPM.” This measurement method breaks the media budget into a thousand exposures, so; you can use this tool to consider the right media options for your marketing needs.
With the CPM method, you are done with selecting effective marketing media for your target group of customers but, the actual question remains unanswered yet, do you know that chosen media is capable of meeting your advertising objective? Ex: if you choose to distribute pamphlets to keep marketing costs of your brand promotion low, you should know that people who look at the pamphlets will be able to impact your brand on the customers, and they will make a note of your contact to purchase the product you sell.
