Market research is a crucial process that companies undertake to gather information about their target audience and the market they operate in. In today’s digital age, market research has become primarily digital, using various methodologies and tools. Conducting market research helps companies achieve important objectives such as verifying business proposals, iterating on existing products based on data analysis, and understanding how their brand is perceived. With the increasing volume and speed of digital channels, comprehensive and timely market research has become the cornerstone of a successful marketing strategy.
How to Do a Market Research: Perspectives, Typologies, Techniques
Market research, especially its data-driven form, provides operational knowledge that is essential for rational expectations and organizing business activities. The market research services industry is rapidly growing, projected to reach $90 billion by 2025, with an annual growth rate of 5%. While market research still involves artisanal practices that require real-world interventions, digital tools and methodologies have evolved, enabling researchers to establish contact with potential consumers and create accurate profiles.
Market research can be classified as primary, secondary, or lean research, depending on the objectives and industry being investigated. Primary research involves gathering firsthand information through surveys conducted by the company. It allows for audience segmentation and the creation of buyer personas. Secondary research utilizes existing public data and documents, such as industry trend reports and market statistics, to analyze competitors. Lean market research, on the other hand, focuses on implementing incremental improvements based on early test explorations and feedback.
Market Research Techniques: Prioritize Interviews and Surveys
There are various techniques for conducting market research, each focusing on different aspects of the industry or potential customers. Some of the commonly used techniques include interviews, surveys, focus groups, observation-based research, and competitive analysis research. Surveys and interviews are particularly important as they offer a close-up view of consumer considerations and expectations. Surveys involve asking respondents a series of questions, while interviews are face-to-face conversations that allow for deeper insights.
Both surveys and interviews can be administered using interactive digital tools, such as personalized mini-sites or video content. These tools not only capture data but also facilitate data analysis and measurement of a company’s Net Promoter Score (NPS).
How to Do a Market Research: The Steps
To conduct effective market research, follow these seven steps:
1. Define Buyer Personas
Start by creating fictitious, generalized representations of ideal customers known as buyer personas. These profiles should embody the distinctive characteristics of the model client, offering insights into consumer challenges, decision-making processes, and product/service preferences.
2. Identify a Group of Personas to Engage
Use the defined buyer personas to identify a group of real people to engage in the market research process. This group should be a representative sample of the target customers.
3. Prepare Questions for Participants
Structure the interview or survey questions in a clear and non-dispersive manner. Ask questions that ensure a progressive understanding and allow enough time to cover all important topics.
4. List Your Main Competitors
Prepare a prospectus listing and describing your main competitors. Identify their strengths, weaknesses, financial situation, and reputation.
5. Summarize Your Findings
Develop a summary document to organize the results of the market research. Choose a tool that facilitates clear communication and sharing of knowledge within the team and other stakeholders.
6. Tell a Story
Create a compelling narrative based on the insights gained from the market research. This helps capture the attention of stakeholders and effectively communicate the results.
7. Choose Technologies that Simplify Data Processes
Use technologies that automate and simplify data acquisition, communication, and sharing processes. Document management processes help maintain data integrity and security, while interactive experiences such as personalized videos and dynamic micro-websites enhance communication and engagement.
Market research is a crucial element of a marketing strategy. It enables companies to understand consumer needs, desires, and expectations, which ultimately leads to more effective sales and marketing initiatives. By conducting market research, marketers gain insights into their target audience, market dynamics, and factors influencing purchasing decisions. With a well-executed market research plan, companies can increase their return on investment and build solid, long-lasting customer relationships.
So, don’t underestimate the power of market research! It’s your secret weapon to understanding your customers and staying ahead of the competition. Exciting times await, my friends!
