“According to the American Marketing Association, marketing research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.” – Michigan Small Business & Technology Development Center
Marketing research can provide useful insights into the way consumers currently feel about your product or service, which can help you identify areas where you need to improve in order to gain market share and become more successful. However, conducting marketing research isn’t just beneficial to your company; it benefits the consumer, too! By providing businesses with better information, marketing research allows companies to create better products and services that ultimately make life easier and more enjoyable for consumers.
Everyone is Doing It
“The global revenue of the market research industry exceeded 76.4 billion U.S. dollars in 2021, growing more than twofold since 2008. In 2020, North America generated the largest share of market research revenue, representing 54 percent of the total, followed by Europe with 23 percent.- Statista
Understand: This means there’s a very good chance your competitors are doing marketing research. If you’re not, you’re behind in the race even before the race starts.
The Dangers of Not Doing Marketing Research
Without conducting proper marketing research, businesses are walking blindly into the world of competitive markets. Without an understanding of consumer behavior and market trends, companies risk wasting valuable time and resources on campaigns that may not generate optimal results.
Failing to do adequate market research can lead to costly miscalculations when it comes to forecasting and budgeting for a product launch or advertising strategy. Without consumer feedback or insights into their target demographic, businesses may be left with a limited view on how their investments can pay off in the long-term. Additionally, without comprehensive data analysis, companies lack the knowledge necessary to make informed decisions about their pricing structures or promotional strategies.
Not investing in marketing research also means foregoing opportunities for innovation. By taking a deep dive into consumer habits and preferences, businesses can develop new products that fit within the current market climate and gain an edge over their competition. Without this research, companies risk being left behind as technology advances and consumer priorities shift.
Proper marketing research is key to staying one step ahead in today’s ever-evolving markets – neglecting it at your own peril!
The Advantages of Marketing Research
Primary vs Secondary
Primary research is hands-on, observing customers in person or via video conferencing. Secondary research is easier and cheaper. It’s done by surveying people who have already bought a product, or reading published reports on the market. With market research methods, companies can gain an edge over competitors who don’t do any marketing research. Market research methods are used to collect information about your target audience and potential customers’ needs and wants.
The marketing research process includes four steps:
Creation of Solutions
Understanding Market Segments
Market segmentation is an important first step in any marketing research process. It is the act of dividing markets into homogeneous groups. Market segmenting helps companies identify their target market and what they need to sell them.
Market research examples are all around us, some more obvious than others. For example, if you’re looking to purchase new tires for your car, you would likely start by examining the different types of tires available, such as all-season or winter tires. You might also look at different brands and tread patterns based on your preferences and needs for your vehicle. This is what market research looks like in practice, whether it’s going online or visiting a store that sells tires.
Asking the Right Questions
Market research is the process of gathering information to identify and anticipate consumers needs. It is important for companies to do marketing research as it helps them gain an advantage over their competitors by determining the best ways to reach their target audience. A company can use either primary or secondary market research, depending on what they are looking for and how much time they want to spend gathering information. Primary research involves talking directly with people in order to get the most accurate results, while secondary research involves using resources like books, journals, and other sources. Market research examples include surveys that collect opinions about products or services, focus groups that analyze attitudes about certain topics, or interviews where participants are asked questions face-to-face.
Using Technology to Answer Questions
Marketing research is the process of gathering information about customers, competitors and potential customers in order to create marketing messages that are tailored to their needs. This type of research can be either primary or secondary. Primary research involves conducting interviews, surveys or focus groups with a targeted population to learn about their preferences and behaviors. Secondary research entails reviewing data from sources such as trade associations, government agencies, news reports and economic data. The advantage of marketing research is its ability to answer questions such as What kind of customer am I looking for? What do my current customers want? and What are my competitors doing? Using technology to answer these questions has made it much easier than in the past when companies had to conduct extensive field studies in order to provide answers.
While I didn’t include it directly in “Who Is a Successful Entrepreneur? 10 Characteristics of Highly Successful People,” I believe that a willingness to gather data is one of the hallmarks of a successful entrepreneur.
In carpentry, they say, “Measure twice; cut once.” Marketing research is exactly that for business.