For a business to develop and grow, a well-developed business strategy must be in place and ready to launch. That being said, a crucial part of it depends on marketing, as well as the customers’ acceptance of the product or services. However, the only way to verify if the corporation is on the right profitable way is by conducting market research. So, what does this mean exactly?
As the market is full of qualified competitors rising daily, companies need to be aware of the preferences and issues of their customers. Since they are the crucial part of the business success, understanding their needs and improving their satisfaction directly influences business growth. Therefore, many use the powerful tool of market research to stay ahead and elevate their performance by avoiding possible risks.
Market research helps you understand market demands, recognize business opportunities, design the perfect marketing campaign, minimize losses, and keep track of the competition. It allows organizations to classify their objectives while following the current trends and take advantage by reaching out to their target audience.
Basic Market Research Methods
To get an idea of the business goals and external factors influencing them, a company needs to determine the type of market research it needs to undertake according to the main objectives. There are four basic methods to ensure that startup businesses run their operations smoothly and determine the level of opportunities on the market:
● Surveys (Quantitative) – This is an excellent choice for recognizing rivals and consumers who might be interested in the offered services or products. The surveys provide a vast amount of data that helps answer the first question – what is the size of my market and which consumers should I target?
● Focus Groups – Once a target audience is recognized, the business can create focus groups for further research. This serves to start a discussion about the products and services, and ways to improve them. It is a humanized approach which can allow a company to gain more clients in the future.
● Case Studies (Qualitative) – This method provides a full understanding of individual interaction with a product or service. It gives an upper hand to a business with valuable info which can be used for creating something meaningful that the customers will love while beating the competitors with a new, revolutionized product.
● Interviews (Qualitative) – Similarly to focus groups, one-on-one interviews allow you to dig deeper, ask all the important and follow-up questions, really get to know the user’s opinion, the level of satisfaction with a product or service, and find ideas for improvements.
These methods are crucial and a primary line of securing vital information needed for increasing the overall business profitability. Nevertheless, there is also secondary research which collects data from available sources.
Some examples include internet info, existing marketing research data, results from agencies, libraries, newspapers, government data, etc. Although this is mostly used for analyzing the primary data, there is a risk of out-to-date information, which can negatively influence the primary results.
Quantitative & Qualitative
Regarding the market research options, qualitative and quantitative methods are considered to be most beneficial. Quantitative research identifies the market, locates the areas for growing sales, helps to find and understand the target customers, and provides a useful statistic for rounding the product/service prices.
On the other hand, qualitative market research gives you a greater perception of the customer’s habits, opinions, feelings, interests, and ideas to use in order to build a better product and improve a service.
The only difference is which of the types are more suited for the particular business. Either choice is beneficial and helps to set realistic expectations and accurate decisions for business growth.
After conducting the research, organizations can implement results into their business plan. With the power of market research developing a strategy will be an easy job with clear instructions. Research data will provide the perfect pricing, logistics, favorable locations from spreading the business, target audience, possible risks, opponent’s strength and weak points, and the ideal timing to take advantage of the market.
The significance of market research goes even beyond and accrues satisfied customers while minimizing the risks of failure and mistakes. It opens your eyes to what the customers want by giving the insight directly into the market demands and unexplored opportunities. This powerful weapon is what differentiates respectable and established companies from small, risky businesses.