Market research It is the foundation and core of any effective marketing strategy, the only way to truly understand your industry, customers, and competitors.
In general, any market research activity can be divided into one of the four categories below.
Why is market research important?
Market research is important because it helps identify the strengths and weaknesses of your marketing strategy.
While many marketers often stick to personal marketing feelings, it’s also important to have an analytical understanding of what your customers want and what your competitors are doing.
Market research can help you explore quantitative data like demographics, even qualitative research data like psychology to better understand the size and scope of your industry.
Another benefit is the ability to identify industry competitors.
Market research helps you better understand the competitive landscape by answering questions like:
- Are you competing with small businesses or large businesses?
- What does their target market look like compared to yours?
- Does your company have enough brand awareness to compete?
Perhaps most importantly, market research provides complete and in-depth insight into your target audience, helping you better understand your customers’ preferences.
The data you find can help the company better serve the specific group of people you’re targeting and even open the door to new products they might want to buy in the future.
Market research is the driving force behind customer purchases because it helps you understand exactly what they want and need.
4 What are the different types of Market Research?
There are four main types of market research that you will likely come across. Each can help you extract data and information about your market in different ways.
Primary research deals with first-party data or information (which is your company).
First party data or information is yours to have collected yourself — not quoted from any other source. Examples of primary market research:
- Focus groups
This type of market research can help reinforce a marketing strategy with data and information coming directly from the customer.
This is arguably the most valuable type of market research as it is specific to your customer base.
Helping you get the best insights into your business’s strengths and weaknesses to understand the customer experience.
A good example of primary research is online surveys and polls, which are a great way to get a large amount of feedback from customers.
You have a question about a product or service.
Why not ask your customers directly? You can post the survey on Facebook or send it via Email Marketing.
This method will help you determine what customers are thinking, the strengths and weaknesses of the business.
Secondary research refers to second or third party data or information.
Second and third party data is collected from what already exists in the market.
Research is not done by you but by other businesses or organizations.
Examples of secondary market research include:
This type of market research helps you better understand your entire industry.
Helps you identify how your competitors are performing, key industry statistics, and other valuable information to create a more informed marketing strategy overall.
Secondary research is the best way to obtain information that already exists within the industry and among competitors.
Identifying that information not only gives you a better idea of what you’re doing from a marketing perspective, but also where to improve.
Maybe a competitor has written a great article that brings in lots of organic traffic or shares on Facebook, thereby giving you the opportunity to write an article with a different point of view, which is likely to be hot due to following the trend.
Qualitative research refers to the collection of data that cannot be measured.
Qualitative research can be primary or secondary.
You can use primary market research methods like interviews, polls, and surveys to find out how your customers feel about a product or service.
The goal is to understand how they think. You can ask open-ended questions like (can be modified slightly to be more relevant):
- Why did you decide to buy our products?
- What features do you think the product has that stands out from the competition?
- What product features do you like, and why?
- Do you think the product can be further improved? Why?
This type of market research gives us insight into what customers are thinking; It’s the only way to discover why customers decide to trust a brand.
When conducting customer research, you can ask customers specific questions about the product.
From there, it helps you form better marketing strategies, focusing more on customers’ feelings and thoughts about the product.
A great way to leverage qualitative research is to do it during a product launch.
The goal is to get as much customer feedback on your new product as possible. Qualitative research can help you assess whether a product has lived up to customer expectations.
For example, if a customer is not satisfied, research why. Is it about quality, price, or does a competitor have a better product?
Qualitative research gives you insight into how your customers perceive your product.
Quantitative research refers to the collection of data for statistical analysis. Like qualitative research, quantitative research can be primary or secondary
This type of research specializes in using metrics to support your marketing campaign. Statistics must not be inferred — must be empirical. Quantitative market research can be:
- Alexa Rank
- Bounce rate
- Number of people like Facebook
- Facebook interaction number
- Number of people registered
Metrics can be seen as the standard for you to invest more time and money in marketing activities. Once you know where you stand in the market on a number of factors like pageviews or subscribers, you can tailor your marketing strategy accordingly.
Unlike the other types of market research outlined in this article, quantitative research has a very distinct advantage that you can use measurement tools.
These tools are increasingly diverse, effective and have more functions. For example, Alexa measures SEO rankings, helping you compare yourself to your competitors.
Regularly Review Your Market Research
Remember, the market always changes suddenly and quickly without any sign of much.
So do periodic market research. This will help you stay up to date on your industry, customers and competitors, thereby creating stronger marketing strategies.
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