Market research will help you develop a successful marketing strategy. It is one of the reasons why market research is so important for organizations that want to make informed decisions. This article will highlight the relevance of market research and importance of market research.
For your products and services to be well-accepted by customers, you must know the choices and preferences of your target audience. Market research provides you with essential information about your competitors and existing products.
The results offer you insights into what it would take to succeed in the market. Hence, organizations base their business decisions on good market research, such as sales and marketing strategies.
LEARN ABOUT: Market research vs marketing research
Market research helps reduce risk by allowing you to determine product features, pricing, and promotions from the outset. It also helps you focus resources where they will be most effective.
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This blog will discuss the importance of market research, its types, and how to plan it for your business.
What is market research?
Market research is a systematic process of gathering, evaluating, and interpreting data. It is the basis of any business that does well. The data could be about a target market, customers, competitors, or the industry as a whole. The research serves a variety of reasons, ranging from identifying a new market to launching a new business.
Market research assists entrepreneurs in making sound business decisions. It may remove the guesswork from innovation and direct resources to the most promising ideas and projects. Different companies conduct market research for different purposes.
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Types of market research
Businesses use various types of market research to gather information about their target market, competitors, and industry trends. There are two main types of market research:
- Quantitative research.
- Qualitative research.
Quantitative research
Quantitative research focuses on generating numbers, for example, what percentage of the population buys a specific product. It is conducted using surveys and questionnaires. You can do simple quantitative research yourself by talking to customers.
More detailed quantitative research can be used to identify markets and understand customer profiles while launching a new product.
Qualitative research
Qualitative research relies on facts and figures to discover what people think and feel about products and what factors affect their purchasing decisions. Researchers use surveys and focus groups to gather this information while interpreting the results is a job that requires certain research skills.
To learn more about the differences and characteristics of these types of research, we recommend reading Qualitative vs. Quantitative Research.
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You can also conduct secondary research using existing surveys and business reports. Use free online information on market size, sales trends, customer profiles, and competitor activity.
The importance of market research for your business
Your customer records can give you a wealth of knowledge about purchasing patterns, the most popular services among various demographic groups, etc.
Market research can help you analyze key trends and predict how the market will change. Here are some of the reasons why market research is important for your business:
Identifies new products and services
Market research can assist you in determining what new products or services the market requires and how you can provide them. Key issues with developing a specific product or service can be identified, allowing you to avoid costly development mistakes.
It also assists you in determining which factors are most important to customers and how to implement them into what you want to bring to market.
Identifies potential customers
Demographic information such as gender, age, income, occupation, and lifestyle can help you better understand your customer base. If you know who your current customers are, you can target them in the future. Marketing to the wrong type of customer can lead to poor product performance.
Establishes product or service viability
If your company plans to launch a new product or service, you must first determine whether the market is ready for it. Will the product be well received? Is the product required by the customers you want to reach? Will it be workable, and what are the chances of success?
Keeps your company ahead of competitors
Comparative studies are excellent for tracking your competitors’ progress compared to your company’s.
If they are far ahead of you, this is an excellent opportunity for you to learn what they are doing differently than you. Business strategies can be developed to help you stay ahead of your competitors.
Reduces risk and enhances profitability
Knowledge can help reduce your company’s risks and determine which risks are worth taking based on past and future market trends.
Market research help in determining market viability, lowering the risk of failure. Understanding your customers’ needs is also important for risk reduction. At the end of the day, lowering risk helps to increase profitability.
Helps to understand existing customers
Your customers are complex, and what they require previously may not be what they require now. To be successful, you must constantly monitor the pulse of your customer base. Market research can help you better understand your current customers.
The market research also helps to determine customer satisfaction levels. If you discover their low satisfaction levels, you can figure out why and fix it. If it is high, you can figure out why and learn how to keep it that way.
Helps set realistic goals
You can set realistic goals by using current data about your market and customer base. Establishing a growth pattern over time lets you know what to expect in the future and how to really develop that growth.
Setting attainable goals will save resources, succeed before you start, and miss out on better long-term goals for your company.
How to plan market research?
Effective market research starts with knowing what you are trying to accomplish and what information you need. You can do it yourself.
For example, if you are considering buying or renting a store, you can analyze traffic levels at different times. Or you can talk to your potential customers.
However, to make good business decisions, you will need a more comprehensive approach.
For example, if you conduct a market survey, you will need survey software to design a survey, customize the look and feel and generate reports. You might also want to integrate the tool with other CRM and marketing automation software.
Survey software can let you export results in standard formats or share the reports with others. You can also create online surveys in multiple languages and let your respondents select the language of their choice.
One of the most important aspects of planning market research is asking the right questions. Design the survey such that it collects meaningful and high-quality data.
If you want to know more about how to do this, we recommend our article: How to Write a Market Research Plan?
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How QuestionPro helps in market research?
QuestionPro is a market research software platform that assists businesses in conducting various types of market research. It has tools to create, distribute, and analyze surveys and other research methods. QuestionPro can assist organizations with their market research in a variety of ways, including:
Surveys: QuestionPro has a full survey builder that lets organizations make their own surveys, add questions, and choose from a variety of question types, like multiple choice, open-ended, and rating scales.
Data collection: QuestionPro enables organizations to collect data via online surveys, email, web pop-ups, and mobile devices. It also provides a variety of data collection methods, including panel sampling, random sampling, and targeted sampling.
Data analysis: To assist organizations in gaining insights from their data, QuestionPro offers a variety of data analysis tools such as cross-tabulation, descriptive statistics, and inferential statistics.
Real-time data reporting: QuestionPro provides real-time data reporting, allowing organizations to monitor the progress of their research in real-time and make changes to their survey design as needed.
Integration with other tools: QuestionPro integrates with a variety of other tools, including Google Analytics, Salesforce, and Zapier, to provide organizations with a comprehensive view of their market research data.
QuestionPro offers businesses a comprehensive platform for conducting market research and gaining valuable insights into their target audience, competitors, and industry trends. It enables businesses to make informed decisions based on data-driven insights.
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Conclusion
Market research should be well-structured, concise, and provide useful insights to help the organization make informed decisions. It should also serve as a starting point for future research and assist organizations in identifying areas for improvement in their business strategies.
Market research is an important component that summarizes the research findings and insights. It gives you a clear picture of the market and its trends, consumer behavior, and the overall competitive landscape.
If you are interested in conducting online survey research, QuestionPro can help you. Request a demo and learn how our survey software works and the advantages of using it in your next market research. Get started today!
