For a business idea to transform into a thoughtful innovation, market research is always the first and the most important step. Whether you are just starting out, or already a well-established firm, questions like -- ‘How much do you know about your potential customers?’ Or ‘Is this enough?’ or ‘Are the customers really happy with your brand? -- always need a sturdy market scan.
Good market research can tell if your company is moving in the right direction and if your products and services are really getting the right kind of attention from the target audience. In some situations, even the most successful businesses fall flat in their attempts to reach the zenith because although they did have a brilliant plan, poor background prep missed something in hindsight.
But, before diving into the nuances of market research, let’s understand briefly what market research is. Market research is a simple act of gathering the existing data about your business and analyzing all the factors (such as price, customer, and competitor) that affect your venture. It is used for a variety of reasons but in most market researches, the customer is the key. Having consumer insights like what they want and how they are reacting to your offering can help a brand formulate the upcoming market strategies based on this reaction.
Largely, there are 4 methods of market research for business -- Primary, Secondary, Qualitative, and Quantitative.
Primary Research- This kind of marketing research acquires information first hand through procedures like focus groups, polls, surveys, and interviews. This involves a lot of fieldwork and interacting with diverse types of customers.
Secondary Research- Here, a researcher goes through the available data or information on the internet or offline records to obtain the required insights into the market. The information is generally obtained through sources like videos, books, government records, and much more. In addition, this information should also be credited since it is not directly acquired by you.
Qualitative Research- When the data collected during the research cannot be measured but only analysed, it is referred to as qualitative research. The goal is to understand the psyche and thoughts behind certain decisions made by consumers, which cannot be measured in number.
Quantitative Research- Collecting data and deriving statistical insights from them is what quantitative research is all about. The aim of this type of marketing research is to find solid empirical evidence that can support your results.
How to Conduct a Market Research
There is not one way to conduct a market survey, however, there are a certain set of methods of market surveys that can make it foolproof and in-depth. Here is the following-
Brainstorm and Brain Map
Before you kickstart your marketing research, make sure you know what you are looking for. To find accurate answers, it is important to have precise questions that are clear and comprehensive. Map out the journey of your survey and then note down the significant goals and objectives that you want to achieve.
Have a clear demarcation of your target audience and the primary focus of your research to narrow it down and be more specific. In addition, also be particular about the sample size you decide for your survey. It should have an accurate representation of your target audience.
Keep Your Tools Ready and Handy
Irrespective of what kind of survey you decide online or on-field, it is crucial to have all the resources such as questionnaires, foundational data, etc., handy. Not only does this save time but also brings some efficacy to your research.
While your motive is to see your company grow and receive good insights, it is very crucial that you do not let that agenda come in the way of your market survey. Perform it with a clean mind and an unbiased approach. Only then will you be able to drive the long-term growth of the company and establish an ideal brand picture in the market.
Benefits of Conducting a Market Research
There is an abundance of advantages of good market research. One of the major benefits is that your business strategy or startup idea becomes very potent. In a way, there are lesser loopholes and it can be presented in a more confident manner. Here are some add-on benefits of conducting surveys for research-
There are several business leaders who believe that the higher the risk, the sweeter the result. As true as that is, a lot of strategies involve a higher investment with considerably lower capital where downward results can deeply hamper the organisation. Hence, good market research means a good investment strategy where one knows what’s to come.
Since the investment is done safely, it automatically reflects on your revenue projections. A well-thought-out strategy will always yield an upward growth chart for the company.
Brings you Closer to Your Customers- When a business idea is built solely on the brand’s understanding of their customers, not only does the brand penetrate the market well but also brings in some really loyal customers who feel understood and respected by the brand.
All in all, today, most MNCs and e-commerce companies like Amazon, Starbucks, and many others are soaring high in the market because of the importance they place on R&D. They know what their customers are talking about, the pain points, and the upcoming trends because they are severely involved in the groundwork. For startups, this is a good place to start and an extremely crucial lesson to learn. Rest assured, with these tips and tricks to market research, you are all set to begin.