Market Research Techniques

30-11-2022

What is market research?

Market research is a way for businesses to collect information about their customers, competitors, and the wider marketplace. It helps them understand their customers’ needs and wants, what differentiates them from others in their industry, and what changes they need to make to their existing products or services. Marketing research tools and techniques provide insight into an existing or potential market, including the size of that market, who the market is composed of, the market’s desires and needs, and how the market can be accessed. Market research aims to provide a comprehensive analysis of the market condition and future expectation. It is a systematic collection of information related to the demand, supply, and distribution of goods and services in the market.

‍Why is market research important?

Marketers might be tempted to skip the research and jump straight into their marketing campaigns but doing so can be costly and might even lead to negative publicity. Market research can help you avoid these situations by letting you know what your customers want from you and how they like to be approached. Before you dive headfirst into your marketing strategies, it’s important to understand your target market needs, wants, and how they currently obtain their products. This will allow you to tailor your marketing campaigns to speak to each customer segment in a way that resonates with them.

‍Market Research Techniques

With so many different types of market research tools and techniques available, deciding which one to use can be overwhelming. It’s important to choose a method that will help you achieve your marketing and business goals while being cost-effective. There are advantages and disadvantages to each type of market research techniques.

‍Focus Groups

Focus groups are used to get feedback about a new product or service that hasn’t been released yet (or a product refresh). They can also be used to get feedback about your business strategy, marketing campaigns, and product/service offerings. Focus groups are usually made up of at least five people who are representative of your target audience. They’re a great way to discover insights and feedback from their observations that you might not have discovered on your own. 

‍Advantages 

– Focus groups are a very cost-effective way to get feedback. You don’t have to spend money on designing and distributing surveys, or on one-on-one interviews. You also don’t have to worry about biased answers since everyone in the group is being honest about their thoughts. 

‍Disadvantages 

– The disadvantage to focus groups is that you only have a small sample size. There are usually only a few people in each group, so their feedback can’t be applied to a larger group.

‍Online Surveys

Online surveys are great when you want to get a lot of people’s feedback in a short amount of time in a primary research. Surveys are usually quick and easy to complete, and you can collect a ton of data and information from a large group of respondents. The downside to online surveys is that they can’t be used to get feedback about issues that are more complex or emotional. This is because respondents are answering questions in a short amount of time.

‍Advantages

– Online surveys are a very cost-effective way to collect a lot of data from a large sample size. You don’t have to pay for focus groups and company interviews with each respondent. 

Disadvantages 

– One disadvantage to online surveys is that you can’t get as in-depth as you can with other forms of research. Since respondents have a limited amount of time to finish the survey, they’re not likely to get very emotional when answering the questions.

Customer Interviews

One of the best ways to get detailed feedback from customers is through one-on-one interviews. You can conduct in-person interviews at your business’s location or over the phone. This method of market research is best used when you want to understand the emotions surrounding a particular topic or when you want to find out how customers are currently solving a problem.

‍Advantages 

– In-depth customer interviews are great for collecting detailed feedback. You can ask probing questions and get a better idea of customers’ needs and challenges.

‍Disadvantages 

– The main disadvantage to conducting in-depth interviews is that they’re time-consuming. You’ll need to dedicate a lot of time to scheduling and conducting the interviews.

‍Company Analysis

Company analysis is the broadest form of market research. You’ll want to look at your company holistically, including your products and services, marketing strategy, and the way that you operate. This type of marketing research is best for assessing your strengths and weaknesses and identifying areas that need improvement. It can also help you understand how your business compares to the competition and how your customers view your brand. 

‍Advantages 

– Company analysis is great for a wide range of topics, including your company’s strengths and weaknesses, products and services, and marketing strategy. This makes it very versatile and applicable to a wide range of situations. 

‍Disadvantages 

– The disadvantage to company analysis is that it’s difficult to narrow it down to one specific topic. This can make it challenging to get clear insights from your research.