As people trying to get feedbacks, search in Google and social networks while making a decision to buy a product, you need to conduct a market research and choose a direction for your company products and services as a business owner in order to increase the sales and improve your brand position among your competitors in the same industry. At this point, you should conduct strong market research. In other words, a comprehensive understanding of buyer personas, customer`s needs and demands, customers feedbacks to the product and pricing, brand awareness, market challenges and competitors and their position in the same industry, are important factors in the decision-making process. Moreover, market research plays an important role in launching new products or implementing new ideas. In addition, the more you conduct market research, the more you can generate leads and then convert them to loyal customers by implementing advertising strategies. Business owners who neglect market research will lose a huge market share.
The 5 Steps to Marketing Research Process
1. Determining the objective of market research
The first and most important step in market research is to determine a specific objective clearly. Additionally, you should know what you are trying to achieve next with your business. Businesses that search for different fields simultaneously, usually cannot achieve their favorite results. Once the objective is identified, the next step is to design a research plan. For instance:
- Why do customers choose your brand? What factors influence their buying decision?
- What factors prevent them from choosing your brand or your competitor`s?
- What are the benefits of using your products or services? What problems you are trying to solve?
- If the customers want to choose one of your competitors, which one do they prefer?
- How much are they willing to invest in solving their problem?
- What kinds of communication do they prefer?
- Which of your industry`s trends grab the customer`s attention?
- In your customer`s point of view, what features should be added to or subtracted from your products or services?
2.Defining audience persona
Before communicating with your customers, understand who they are and how customers in your industry make buying decisions. Some demographic information such as age, family size, location, job title and average income can help you to know your customers better. Then, understand the customer’s actual characteristics, challenges and buying habits. Online tools let business owners track the customer`s behaviors easier than in the past.
One of the vital steps in market research is to analyze your competitors. In order to be successful, you should gather valid data. Analyzing products and services, market share, audience persona, distribution channels, digital asset audit, pricing, marketing activities, marketing mix (4Ps of marketing), SWOT analysis and customer interaction management are some of the relevant data that help you to conduct market research.
4. Choosing the most proper way in market research
Generally, there are two main types of market research; Qualitative and Quantitative research. In other words, in quantitative market research, we will gather numerical or statistical data and in qualitative research, we get customers’ feedbacks and understand their feelings through direct communication. Keep in mind that the method which you use in market research depends on your business and your target audience.
Initially, use primary research in order to collect the most actionable information to achieve the goal of your market research. Focus Groups, online surveys, and interviews are some types of conducting primary research. In the focus group, determine the target precisely and then plan the questions clearly. In the next level, a small group of people (6-10) will typically respond to the questions and send their feedback. These opinions can be criticized, accepted or denied. Ultimately, by perceiving customer`s feelings and needs you can gather an overall data about a product and generate quick results in order to boost your business.
In the secondary research use sources such as libraries, magazines, reports, studies, government agencies and social networks.
Now it`s time to categorize your findings and evaluate them. Additionally, these findings help you to evaluate the SWOT, figure out the prons and cons of your business, brainstorm for new products or services, meet the customer`s demands and optimize the process. Keep in mind that trends can change over time and you should always analyze your data on a regular basis to see where you can improve.
The Main Benefits of Market Research
Apart from gaining a better understanding of your target audience, market research helps you to strengthen your brand position in the industry and be aware of trends and then decide to make some modifications in order to suit the industry. Moreover, you can predict the changes in the market and identify the opportunities in the market research that you did not pay attention to. Furthermore, market research allows you to learn about customers’ buying habits. The other benefit is that market research helps you discover your`s and your competitor`s strengths and weaknesses.
Market research has a significant impact on sales growth and the rate of return on investment (ROI). Companies conducting market research continuously have 10 times more growth compared to businesses that did not perform market research. The ROI rate is also twice as high as before.
Do not forget market research as you are going to lose market opportunities and target audiences. As a marketing scientist, Macan digital marketing agency can help you in the process of gathering data and conducting market research.