how to do market research 101
Before diving straight into how to do market research. Let’s first understand what market search is.
Consumers have a lot of options to choose from, they research before buying anything.
Their purchase decisions will be based until they get satisfactory results from their research about a product or service.
Moreover, in this digital world, research has become more convenient for consumers. They can research by reading online reviews, talking to sales reps, take leverage of referrals from their networks.
Why am I telling you this?
The reason is businesses conduct market research about learning and understanding what influences the purchase decisions of a buyer and their targeted audiences.
What is Market Research?
Market research is a process of gathering and understanding your customers and target audiences to determine the marketing strategy for them to influence the purchase decision of your product or services.
It includes demographic, psychographic, geographic data about the potential customers and competitive analysis to make one’s product or services better than the competitor.
What is the need for market research?
Market research contributes to your company’s growth. It allows setting goals by evaluating the demands of the customers. Therefore, solving the problems by understanding your buyer’s problems and provide with desired solutions to impact the purchases and conversions.
The bottom line is, give what your targeted audience wants. When they get what they wanted their likely convert into your loyal customers.
What do they want? That is what the Market Research is for.
Types of Market Research
Let’s look at some of the popular market research types.
Interviews allow for face-to-face discussions or conversations on a given set of topics. You can watch your interviewee’s body language. Moreover, it good for qualitative research.
2. Focus Groups
Focus Groups are where a handful of selected people take part in an interactive discussion with a moderator. They test out your product and provide feedback.
Do keep in mind, those carefully selected people are experienced people and their opinions can vary. However, it allows you to broaden your perspective and welcome new things for your product or service.
Surveys are like asking directly from your audiences. Conduct polls are one good example. Back in the day, Marketers used to knock at every door to ask about products or services. Today, Companies conduct polls through their social media platforms. That makes the ‘Surveys’ cost-effective market research methods.
There are use cases of online surveys are:
- User satisfaction feedback
- Product features desirability
- Reasons to convert or cancel your services
4. Campaign Research
Campaign research requires looking into your past campaigns and evaluate and analyze about the success of your targeted audience. Keeping those successful aspects to inculcate in your future campaigns.
Yes, it does require experimentation. Through the process, you will understand your audience better and reflect on what they might like in your future campaigns.
5. Competitive Analysis
Competitive analysis is understanding one’s market environment. It gives a deep study of your competition in your market and industry.
Competitors can be great teachers. Who would have thought?
You can learn from their mistake and you can embrace those mistakes in your product or services after rectify thoroughly, of course.
However, do keep in mind, what works for your competitor might not work for you even if you have the same industry. It’s a tried and tested technique.
6. Market Segmentation
Market segmentation allows you to categorize a market into similar groups based on specific and characteristics.
By segmenting process, you can determine who would be your valuable customer for the business and may discover your look-like customers and develop a plan for them as well.
Every customer is different and therefore categorizing them based on similar interests will be easier for brands to cater to. It will be beneficial for both company and the customers.
How to do Market Research?
- Identify your target audience
- Choose the research method
- Prepare research data
- Analyze research data
- Interpret and conclusions
1. Identify your target audience
You first check before jumping straight to the pool, right? Likewise, you first need to understand who your audience is before answering how, why, where, when questions.
Simply put, who is your product or services are for?
You can identify your target audience based on key characteristics and these are:
- Job titles
- Family Size
This is how you can get closer to identify for right people to engage.
2. Choose the research method
Choose the research method for your market research. Evaluate each of the market research method and see how effective it would be for your research.
3. Prepare research data
After choosing the research method, the next step would be gathering the data. This data is from the people who can be your potential customers in the future.
4. Analyze research data
Analyze research data, look for the concepts, trends, patterns of your target audience. This all will contribute to your future marketing campaigns.
5. Interpret and conclusion
Interpret the information you’ve collected and turn it into actions. Make a report and leave it for the decision-makers.
However, keep in mind, you must compile all the information, a description of your research process along recommended actions.
To sum up, Market Research is not a one-day process. It requires a detailed study of consumer patterns, trends and concepts. You have to be a patient market researcher for this. Also, There are a lot of case studies of brands you can take reference from. They all have one thing in common. And that is a team of market researchers that lead to the creation of their market story into a great success.
When the research is done right, there it goes your business’s chances of fly, figuratively writing.