What Is Market Research ?
While market research is essential for a new firm, it may also help older companies enhance revenues. The formulation of an effective marketing plan requires correct knowledge about the marketplace, the target market (customers), and the competitors.
✅TAKEAWAYS IMPORTANT
- Market research is used by businesses to determine the feasibility of a new product or service by directly connecting with a potential client.
- Companies may use market research to determine their target market and receive real-time comments and views from customers.
- This sort of research can be done in-house, by the company, or by a market research firm that works on a contract basis.
- Market research is gathering and analyzing data about customers, rivals, and the efficacy of marketing campaigns.
Before you start or expand your business, conduct market research.
Market research is used by company owners to examine the viability of new business prospects. Market research is an important part of every startup company's business plan. The planned firm will not be feasible if market research indicates that there is no demand for the product or service. Businesses can also use the information to enter new markets.
Examine the Competition
Market research may be used to keep track of industry and economic changes. Use the information to develop strategies and adapt your company to changing conditions.
You can notice how the competitor tries to take part of your market share by watching their commercials, websites, and social media activities. Develop competitive tactics based on the findings. For example, analyzing how your products, services, and customer service compare to the competition or setting competitive pricing for items or services.
Product or Service Evaluation
To respond to client demands, you can gauge interest in new items or services you're bringing to market. Use the results of your tests to identify the best product placement so that your customers always discover you first. The outcomes will also assist you in determining the optimal times and locations to distribute your goods. It's also a good approach to see how responsive you are to consumer needs and how you can enhance your customer service. Market research will assist you in developing the best promotional strategy. It will specify how to reach the target market through branding, traditional advertising, and social media.
Conduct market research with customers
Online, one-on-one interviews, "Satisfaction Surveys," and phone conversations are all used to conduct customer surveys. Due to the high cost and low response rate, traditional phone surveys are on the decrease (most people find them irritating). Many businesses post a short customer feedback form in a visible area on the premises (or include the form with bills) for consumers to fill out.
Your web-savvy company should do research.
People are statistically more inclined to publish critical comments or reviews than favorable ones, therefore social media initiatives can backfire. Negative product evaluations and poor customer service may lead to widespread social media criticism and be terrible for businesses.
Product Trials and Market Research
Giving clients live samples of new items and measuring their reactions may be a valuable market research tactic. Direct client input may be utilized to make product adjustments or identify the best price. Product trials are perfect for organizations such as food service firms that want to try out new menu items.
Observation directly
Direct observation is seeing or videotaping customers in their natural environment to see how they react to product or service presentations. Direct observation via video may only be undertaken in a public place for privacy considerations unless the individual being surveyed is aware that they are being video filmed. Direct observation has the advantage of the customer behaving naturally to gather information (rather than responding in a contrived manner as they might with another survey form), but it is a very time-consuming method of market research.
While it's typical for enterprises to employ market research firms to do their research for them, small company owners may do it themselves.
Research is redefining Lego.
For years, Lego was a huge hit with young boys, but just 10% of female youngsters liked it. Lego responded by conducting a four-year market research study with over 3500 young girls, which resulted in a new product line with brilliant colors and a variety of figures. The new goods were a big hit, and the number of female Lego fans skyrocketed.