How to do market research? Simple tips
What exactly is market research? Is it the same as an analysis of competition and growth opportunities? Is it worth conducting it only at the opening of the business, or maybe also at a later stage of the business? We will try to answer these questions in this article. Virtually every entrepreneur has faced similar dilemmas at some point. Questions like:
- What color should the logo be.
- Whether product prices should be low or very low.
- How to reach customers most effectively
Such questions are on the mind of every business owner. Some of them decide to act by trial and error, completely ignoring the potential benefits that reliable market research could bring. Especially in times of crisis, which, due to a pandemic, will probably soon hit the world economy, it is worth using any knowledge that will give you an edge over your competitors.
Market research - expansion into new markets
More and more companies are moving to the Internet, and in the process trying to operate internationally. In principle, there is nothing surprising about this, because the Internet, like no other medium, is ideal for this. However, before deciding to go out to foreign customers, it is worth conducting market research. We seemingly live in a global village, but still the preferences of consumers in different countries can vary quite significantly.
And besides, without in-depth knowledge of the market, it's easy to make a spectacular slip-up. No need to be ashamed - these have happened even to the largest companies. Take, for example, an example from the automotive industry - the name of one of AUDI's popular SUVs, the Q3 model in Spanish-speaking countries reads similarly to "miserable." This, as well as many other examples of slip-ups, certainly had an impact on the sales statistics of this vehicle.
Good market intelligence also means knowing the competition and demand for a given product/service. This knowledge will allow you to plan marketing activities and predict trends in a given market, or finally gain a competitive advantage. Because - for example - a low price that determines the demand for a product in Poland does not necessarily translate into popularity of the product in Germany.
New market niches
A well-conducted market analysis will allow us to discover completely new niches in the market. For example, if our company has so far sold expensive industrial machinery, maybe in times of crisis it is worthwhile to move to the distribution of cheaper products? For example, tools? Or go out to other customers, for example, individual customers, in place of business customers, who constituted the core Customers to date? A sound market survey will provide the answer to this question.
Market research - key benefits
Market research aims to comprehensively identify the processes taking place in the market. It allows to understand not only their current shape, but also the factors that affect their specific development. This is knowledge that significantly helps in building an offer, but also in planning the organization's strategy in a given market. It also enables a much more effective expansion of the sales system or product offering.
Market research will also allow you to get to know the main players. After all, observing the competition is an integral part of the company's operation - it allows you to plan your strategy and modify it, depending on the market situation.
Key differentiators of market research
Market research can take different forms due to, for example, the purpose for which it is conducted. Based on this variable, we distinguish research:
How do they differ from each other? Exploratory research is designed to identify various problems and promote understanding of them. Pricing research, on the other hand, facilitates product pricing policies in a particular market/segment. The role of test research, on the other hand, is to try out different types of products or services.
Market research - quantitative and qualitative
Want to find out what product is most popular in the "Garden" category? A quantitative survey will come in handy. This is an activity designed to extract as much numerical information as possible about market trends.
And if you want to know why people just chose an electric lawnmower over a petrol one, for example, you need to conduct a qualitative study. It is based mainly on small groups of people and facilitates the analysis of a specific process.
Market research - time
Are you wondering about future strategy? Or maybe you want to know what the market looked like a year ago/5 years ago or in yet another time horizon? Market research allows you to get such data - if only on the basis of data that the Central Statistical Office provides, but also various types of surveys.
How long does a market study take?
There is no one-size-fits-all answer here. It depends on the specific case, but also, for example, on the number of people implementing the project, the amount of information, and the availability of data. After all, it is worth remembering that such market analysis often requires not only primary research, but also secondary research.
All of these activities thus require weeks or months to generate real value for the customer and satisfy their needs.