To grow your business and increase profits, you need a strategic approach. Rather than measuring opportunities based on business instincts or personal preferences, it is essential to use data to drive your decisions. Through market research, you can collect and analyze audience and industry data to develop smarter methods for your company and achieve important business goals. According to Hannover Research, nearly 70% of companies rely on market research to increase sales.
What is market research?
Market research is the process of collecting and evaluating information related to your business transactions. You can use this data to research many aspects of the company, including your target audience or customers, your industry or niche market, and your peers and competitors.
Since this analysis can benefit your company at many different stages, there is no suitable time for research. Many companies perform this process continuously or regularly, for example, at startup and before expanding their products.
Researching the market can help your business accomplish tasks such as:
Identify business improvements: If your company fails to meet the business goals you set entirely, you may need to make some changes. Market analysis can help you identify the issues that have the most significant impact on your business.
Develop marketing activities: You need promotional activities to attract your audience effectively. By studying your audience and how they perceive your brand, you can create marketing campaigns that can significantly impact.
Plan new product launches: Launching new product or service series can significantly increase the company’s revenue. By analyzing the new production line’s demand, you can increase any chance of a successful startup.
Seek new markets: Once you have covered a large portion of your target audience, you can expand into new markets. This is a smart way to grow. Through effective research, you can identify new markets that may provide substantial growth opportunities.
Assess the viability of your business: Your new business idea sounds like it has great potential. By collecting and analyzing market data, you can understand the feasibility of your business and decide whether to move on.
What Is a Sales Funnel?
What You Should Know About Lead Magnets
All your Questions about Digital Marketing Answered
What You Should Know About Lead Magnets
Lead generation in digital marketing
How to conduct market research
To begin analyzing your market, you must understand the essential elements that make up the process. Carefully study how to conduct market research by studying the types and sources of data that constitute useful research.
Two types of market research data
When researching the market, two types of market research data can be collected:
Secondary information: This data comes from other channels that collect information and provide it to the public. For example, you might retrieve auxiliary information from federal databases or newspaper articles. The most significant benefit is that you don’t have to spend time or resources in that part of the process because there is another party to collect. The main disadvantage of this type of data is that it is publicly available.
Primary information: This data comes from the source, such as customers. When your business creates this type of data, you have complete control over the collection and analysis. The most significant benefit is that your company owns it without having to share it with others. The disadvantage is that it can be expensive and time-consuming to collect depending on the method you use.
Types of information collected through primary and secondary sources
All the data you collect during your research falls into one of two categories, which affects the way you analyze it:
Quantitative data: You can measure this type of information, usually focusing on numbers and numbers. Quantitative data can help you determine percentages and statistics.
Qualitative data: You are able to compare these information types to have an idea of how the audience feels towards something. It can also help you to understand why viewers prefer certain products or make specific choices.
Sources of significant market research
Observation: Although most major sources require direct input from your target audience, observation allows you to observe how customers interact with your products, services, or marketing materials. After the team observes that the customer interacts naturally with these elements, you can conclude their problems or preferences.
Survey: Through customer surveys, you can ask more questions to a broader range of people. Like interviews, surveys can ask questions to gain insight into purchasing decisions. You have the option to set up face-to-face, online, or phone surveys that your audience is able to do on their own, which allows the team to be more effective.
Focus groups: Although interviews are usually one-on-one, focus groups allow you to talk to several people simultaneously. Most focus group members can have characteristics that are similar, which maybe needs, problems, or demographics. Research analysts usually lead discussions, and discussions usually include guiding questions about your company, product line, or industry.
Interview: When talking directly with customers, you can ask specific questions to evaluate your behavior and preferences. You can do these interviews through email, chat, video, or phone. Since interviews tend to be interactive, their added benefit is that you have the option to ask to follow-up questions or clarify answers.
Sources of secondary market research
Literary reviews: To thoroughly analyze the existing data in your market segment, look for literary reviews to incorporate publicly available information.
Government reports and databases: Institutions such as the US Census Bureau and the Bureau of Labor Statistics release statistical information and analysis results for the public every month, quarterly, or annually.
Case study: Other businesses in your business industry could post comments that include qualitative findings and statistics that are seen to be related to your research.
Trade publications and academic research: Industry journals and university reviews often publish in-depth research on audiences or walls related to your company.