Marketing research is the systematic and intensive process of gathering information about consumers, their needs and tastes, and their purchasing power. Market research is essential for businesses to develop and implement effective marketing strategies that will reach their potential customers. Market research helps organizations understand the customer segments that they have to cater to, and how these segments find their products and services.
By understanding consumer behavior, marketers can improve the design of their marketing campaigns and make them more efficient.
There are many benefits of conducting market research. Among these are the ability to: identify customers that may be potential customers for years to come; gather more information on target markets than any other research method could; measure market performance against marketing objectives; observe behavior in target markets to determine what works and what doesn’t; and use the data gathered to build new polices and to fine tune existing programs. The following are examples of the many uses of market research in organizations.
Focus groups are groups of people that meet face-to-face and discuss a given topic over a short period of time.
Through group discussion, participants can explore any topic and come up with their own opinions and ideas. The research methods used in focus groups can range from the most traditional research method known as elicitation, in which case participants are asked to complete a series of structured questionnaires; or the more recent survey method known as focus group analysis, which collects data using various techniques (e.g., role-playing, elicitation, surveys) in order to reveal group dynamics that are meaningful to the researcher. In some cases, focus groups may use non-traditional tools such as focus groups within a laboratory setting.
Another important use of market research for organizations comes in the form of consumer surveys.
Surveys allow companies to get direct insights about the buying habits and purchasing intentions of customers. These insights can be used to help make strategic and critical business decisions. Consumer surveys also allow companies to monitor customer satisfaction and identify trends or problems. This type of market research often involves using online tools such as customer satisfaction surveys, focus groups, or surveys on the internet.
Direct Contact with Potential Customers and Clients.
As stated before, market research is an integral part of any marketing strategy.
However, it can also be useful for companies to contact potential customers and clients directly. While these types of direct contact surveys don’t offer the scope and depth of a large-scale market research study, they can be a valuable source of information about how best to reach out to and engage with customers and clients.
Summary of Lean Market Research Insights.
Companies that embrace a lean approach to doing business are more likely to be successful than those that don’t.
Using a net promoter metric as one of the components of the lean approach makes perfect sense: the more sources of information a company has about its marketplace, the more insights it can draw, therefore the more options it will have to build the most compelling marketing message and position.
Any solid marketing strategy should begin with comprehensive research.
Market research can be conducted through several approaches, including focus groups, surveys, and online questionnaires. These methods can provide useful insights that marketers can use to fine tune their strategies. However, these same methods can also be hindered by the difficulty of gathering the right kind of data in the first place.
How to Collect and Evaluate Insights About Your Market.
There are several key business decisions made every day, some of which we are not even aware of. It doesn’t matter if you are a brand new business, a medium-sized company, or a large established company. All of these factors contribute to the quality of consumer products and services, so it only makes sense to understand what consumers are thinking when they purchase, respond to, or don’t respond to your marketing strategy.