A year back, I had an idea for a product that will help millions of people and pull the heartstring and money from consumers. So I talked to my dad, and the only thing I worried about was the finance, but my dad just asked me who will buy your product and why will they buy it and I vaguely answered all those questions, and he asked me to do a detailed study and market research for the product.
And I didn’t get much response to the product, and I told my dad that this is my study. After calculating all the data, he said it’s not viable to put money into this as your target audience is not interested. This made me drop my plan because he was right; I don’t have the right audience for my product. This showed me the importance of market research.
As marketers, we research many things online, and so do our consumers. According to the market research report of consumer behavior:
- 80% business account is followed more
- 87% of mobile consumers use the internet to cater to their needs
Many business owners ignore this critical step and jump into the market with a new and innovative product but fail to understand consumers’ needs and requirements. Some don’t follow this step to avoid getting negative feedback, or it is expensive for them. Launching a new product without market research is like skydiving without a parachute, you might die or reach alive with broken bones.
Hence to the best, it is necessary to do your homework before launching your star product. A successful entrepreneur should know how to conduct market research.
What is Marketing analysis?
The procedure of collecting data about your buyer’s interest selected audience and customers determines to what extent the product or service will be liked and appreciated by the people. This will also help you to know where to find your audiences for your product to sell. It will give you a brief about the market, customers want and need, and what influences their decision to spend their money.
Analyzing the market will help you to take a justifiable risk, clarify what you can do to stand out from the competition, and move your business toward success. Our questions such as,
- Who is my targeted audience?
- What are my audience’s buying habits?
- How large is my market?
- Who is my competition?
- What are my rival’s strengths and weaknesses?
All can be answered, thus taking out a new venture or new product to the next level.
Types of market research
Before entering the market, two types of research is done,
- Primary market research
- Secondary market research
Primary research is conducted to get the essential information directly from the market and the audience. You can do this by yourself or hire someone to gather via Phone interviews, focus groups, online surveys, which are used to collect the details of the problems faced by customers and the brand awareness behind your company. It is divided into
- Exploratory research
This kind of primary research is not involved in statistical data but focuses on the potential problem tackling as a team. This is the first step before any specific analysis starts to perform, and it involves a small group of people or an open-ended interview.
- Specific research
This kind of Primary market research is followed by exploratory analysis and focus a step further, I.e., towards the vital business opportunities worth entering into. In this, a specific segment of the consumer is targeted and asked questions aimed to solve a suspected problem.
As a name suggests, this is more advanced research focusing on analytical data, reports, studies, and information from government agencies, trade associations, and libraries. It concentrates on your existing trend reports, market statistics, sales data as well. This research is more helpful to study our competitors. Three types of research are included in this.
- Public sources
This source is the first material to put a hand on. It is more accessible, free to find and read and offers you the worth of money information. Another source is Government data, Libraries, Associations, Institutions as well.
- Commercial sources:
This is generally done by the research agency in market reports, consisting of industry insight. This is expensive to obtain as a researcher has deeply studied it to get; this is also portable and distributable.
- Internal sources:
This is the more reliable, up to the market research as it is done in-house in the organization. This source has information on all the old and new accounts that can help you conclude your changing buyers’ requirements.
Market research companies such as Allied market research and Transparency market research provide market research reports and business intelligence solutions to a small business as well as to Global enterprise.
Market research Process
- Determine the purpose of the study.
“So, what is your study’s purpose?” the first question your audience will ask, and the first question you should ask yourself. Researchers use it to assess risk or opportunities or get the idea from the market.
The first thing is to clarify and determine whether the analysis is for internal or external purposes. Internal research aims to improve cash flow or business operations while External research focuses on getting a business loan. A proper analysis will show the investor yours and your company’s potential.
We all know Lego is a toy company and is lean towards boys. SO they conducted research that shows only 9% of girls play with their toys. Hence they wanted to come up with a new product entice for girls. They sent out researchers for four years involving 3500 girls and their mother, studying their playing habits and extensive questioning about what kind of lego will be interesting for girls. After the research was over, Lego introduced “Friends” and got girls as their consumers as well.
- Define your target audience
Also known as Buyer personas are an ideal customer to help you visualize your audience, streamline your message, and find the right strategy. Focus on defining:
- Job title
- Family size
Our focus is to use this data as a guideline when you start researching actual customers if your business lends to focus on more than one persona than focus on optimizing during actual content and campaigns.
Another is from Apple called the research “Apple customer pulse.” They did this research online; hence it was easier to compile data. These surveys have led to designs and modifications of Apple products.
- Identify ways to engage your persona.
After knowing your targeted personas, you will need a representative to find the characteristics, challenges, and buying habits.
It should be somebody who has recently purchased, and you can contact them through.
- focus group
- conducting an online survey
- Phone interviews.
Choose a customer that fits your buyer persona, such as people who got an evaluation within six months or one year or can get some new persona or mix participants depending upon your requirement.
Mcdonalds, while doing market research, narrowed their search on what the products are well received, prices consumers are willing to pay, where they learn about McD, and the restaurant they visited the most. From this, they learned whether their target customers are increasing or not.
Also read: Content Marketing Trends for 2020
- Recruit your market research participants
You will need to recruit participants to do this research on, and it is very time consuming if you are an individual marketer. Things to keep in mind while you put your efforts are:
- Choose customers who recently purchased, use a CRM system to get the details.
- Choose customers who were evaluated but didn’t purchase. You can get it from the CRM system or sales team as well.
- Get help from Social Media- get in touch with people who follow you, but don’t purchase from you. Ask them the reason, and it will help you evaluate.
- Use your network- Tell your colleague, LinkedIn network, and coworker about your study. Chances are some can qualify for the research
- Choose an incentive. You can’t get anything for free. Try sending a reward or a thank you note once the study is complete.
Have a look at this Starbuck market research to excel in the brand.
- Prepare your Questionnaire
Whatever research you are conducting, you should be aware of the question to be asked to make sure you have covered all the topics you have in mind and use your time wisely.
Ensure your discussion guide has an outline format, time-bound, and an open-ended question for each section. This open question will help you to get to know the thoughts of your audience.
Your talking points should consist of:
- Background information
- Awareness about the problem
- Consideration, i.e., what they did to solve their problem?
- How do they arrive at a decision?
- Close by knowing their ideal buying process.
- List your Competitors
Competition is either between a company or with a division of a company even though that company’s brand might put more effort into a different area. For example, Apple is known for its laptops, but it indirectly competes with Spotify.
From a content standpoint, there is an indirect competition with blogs, YouTube channels, or inbound website visitors even though their product doesn’t overlap with yours at all. For example, A soap might compete with magazines like Health.com or blogs related to nutrition, though these magazines don’t sell toiletries.
Identifying industry competitors
Start by knowing which industry you are pursuing and find your competitors whose services overlap with yours. Find a word for your identity and use it to create a list of companies that belong to this industry.
- Download readily available market report
- Search your social media
Identifying Content Competitors
Try to find online publications with which you compete and find specific industry terms your company identifies with.
For example, a clothing business will be a retail business, but it comes across party clothes, casual clothes, and office clothes. Now after the list is prepared, you can,
- Google it
- Compare your search result with your buyer’s persona
The searches appeared on 2-3 pages of google will be your potential competitors and will be scrutinized as you build your blogs, videos, web pages.
- Analyze your findings
Finalize your theme and create a list of action items. Add the following outline for a clear summary.
- Framework- Objective of doing the study in the first place
- Participants- A table to break down the group by person and customer.
- Synopsis- Things you learned, and how are you going to use it?
- Recognition- Triggers that can lead to evaluation. ex- Quotes
- Deliberation- details about the most uncovered theme and detail source buyers use of the assessment.
- Conclusion- How the buyer makes a decision under the influence, and product features can make or break the deal.
- Plan of Action- Your analysis has helped to get your brand ahead of your competitions more effectively. List priorities, timeline, and the impact it will have on your business.
Action Ready for research
Market research is a broad area that can help to know your buyers well and will help uncover new area tips to improve interactions and can become an eye-opening experience.