Marketing research is a vital component of the success of any business. It allows companies to establish and define their target audience, conduct market research, set marketing objectives and adjust marketing strategies accordingly. It also enables companies to make informed decisions about strategic marketing moves that yield the greatest returns. Without it, businesses could not plan and implement marketing plans effectively and efficiently. However, marketing research does not always yield the desired results. In fact, some very detrimental results have been reported when marketing research is ignored or not well-targeted.
Companies conducting market research need to be extremely organized in order to produce quality reports.
The objective is to identify, analyze, and measure the characteristics and actions that affect consumer behavior relating to marketing goods and services. The goal therefore is to identify the common market research challenges facing organizations, and develop solutions to these problems. For instance, the common market research challenge is to better understand and measure customer satisfaction.
By conducting a proper market research survey, companies will know what their consumers want. They will also be able to create product designs that fully satisfy consumer needs. Also, they will be able to determine whether changes in product design will improve service quality or lead to increased customer dissatisfaction. A well-designed and executed marketing plan will then be able to drive greater profitability.
Another common market research challenge is to understand the factors that influence customer choice behavior and product purchasing decisions.
Most companies conduct market research surveys to understand customers’ buying preferences. They do this by collecting information from a number of different sources such as customers, researchers, target users, and target market participants. One way to gather this information is by conducting focus groups. Usually, focus groups are conducted with the aid of a neutral third party who can provide feedback on the products or services being offered by the company.
Another type of market research example includes the use of a questionnaire or form provided by a company.
For instance, some companies conduct interviews with qualified Internet users to get information on what they like and dislike when it comes to certain products or services. Through this type of questionnaire, companies can then formulate plans for marketing campaigns that will most likely reach the target market. Aside from gathering information about product preferences, Internet users also provide information about their Net promoter score, their level of familiarity with the product or service, and other important characteristics.
The use of a survey to better understand the needs and preferences of potential customers is a common market research example. This type of survey is often conducted by marketing research companies. A representative from a marketing research company asks questions about product features and traits, price, and other important characteristics of the products or services to which they would most likely provide a response. Survey takers typically complete the questionnaire on a computer, laptop, or other electronic device. These types of surveys are usually inexpensive and can yield very useful results.
A third example of a common market research example involves the use of focus groups.
Firms that engage in market research activities often invite a variety of groups to participate in a conversation or discussion about a specific topic. Participants of these discussions present their own individual viewpoint based upon their experience and knowledge. Because of this fact, companies that employ focus groups in their market research process are able to obtain more varied and detailed responses than if they attempted to recruit participants using surveys alone.
Another advantage to conducting focus groups is that they are simple to administer.
Since the participants come to the session as mere consumers looking for a good product or service, it is easy to establish rapport and build interest. When the conversation moves toward more personal topics such as experiences with a particular product or company, the group is much more inclined to offer an honest opinion. This is why most successful marketing research firms encourage their representatives to participate in focus groups rather than surveys alone. In addition to being quick and easy, focus groups provide marketers with a valuable tool to improve their understanding of their target markets.