Importance and Types of Market Research

Importance and Types of Market Research

With the growing pace of new businesses and brands every day, most of us are looking at a shot to try and build our business empire. One of the key factors that help build a business is nothing but good market research. We aren’t talking about basic research conducted by any tom, dick, or harry. This tool, if used the right way can transform your business into one of the best and most sought-after brands.

While market research may seem like a soft term, behind the process of this tool lies the intricate secrets and details of a successful business. Factors which first and long-timers both tend to lose track of are factored in and taken in by this tool. Every new business starts on a great note. The energy is high, motivation is off the charts and the will to work is infinite. It is usually three months down the line when the practicality of handling a full-fledged business sets in and you realize that something might not be working the way you predicted it to be. Every business starts with a bang but tends to taper downwards in energy and popularity if you do not plan well.

Due to how close you are to your brand; we tend to lose the rawness of judgment. We do not see the things that a third party will see. We might think that one particular market or audience works best for the brand but somehow something eventually dampens your plan. It is during such times when you realize that something is off.

So here is the big question, how do you see through? How do you see through minor details and get future insights into your brand? You know the answer. Marketing Research. In a nutshell, here are 8 reasons why marketing research is the answer to all your brand and business-related concerns:

  • It helps you know your exact position in the market, thereby helping you plan and target the right audience.
  • Keep tabs on your competition so you can stay up to date and ensure you always plan one step ahead.
  • Finds out the trends that are doing well in the market and gives you regular updates so you can use this to push your brand up and ahead.
  • Does the planning for you down to the ‘D’. Not just a hypothetical plan, but a plan that will work for the brand.
  • Gives you a detailed market forecast that will help you understand if a decided plan of action will work well or not for your brand in the foreseeable future.
  • Gives you all the facts you need to know about your business. Secrets, untapped resources, and a lot more to help give your brand the right direction.
  • While you may feel that one particular market trick is working wonders for you, proper market research involves staying relevant at all times. No matter how great one plan works, it will go out of style and get old. This is why staying relevant is crucial.
  • When you choose to go with a market research agency, you get an unbiased view of your brand and industry. This will give you a lot more clarity and information on the standing of you and your competition.

While these are some of the sure-shot benefits of market research, the second thought that pops in one’s head is what are some types of market research? Is it subjected to only a few? Are there any limitations? Will my particular business problem have a solution? Let us find out. Before we get into the market research types, let us quickly share with you some of the frequently used tools of market research.

  1. Online surveys (Used to gather mass information from customers online)
  2. Focus groups (Discussions conducted between 4-12 participants which are guided by a moderator)
  3. Feedback Surveys (Usually used to gather information from customers immediately after they have consumed a product or attended an event)
  4. Mail surveys (Physical mail sent to potential customers which contain surveys to help gather customer feedback or information)
  5. Phone surveys (The term says it all. These are calls conducted to help get information from customers)
  6. Mystery shoppers (A very popular way wherein selected people are sent in like normal people to go and do a live evaluation of a product or brand. Information and feedback are then collected from them.)
  7. Shopping tag-along (A customer is accompanied by an interviewer who asks a series of questions to understand customer psyche and therefore the brand and customer expectation)
  8. Full-depth interviews (The good old interviews where information is taken on a one on one basis after having a conversation)

While these tools are a crucial part of market research, another important piece of information to know about is the types of market research:

Product experimentation

So you have a brand new product! You are confident of it and you have full faith that this will be your golden goose to loyal customers and a handsome cash flow. But stop right there. One of the cardinal rules of a business is to look at a product from several points of view. If you are looking at a product launch but are unsure of what kind of response this would get, then opting for this type of market research would be highly helpful. By going deep into what value this product brings, what impact it can have and how it fares in comparison to the competition, you will have all the clarity you need to have a successful launch. The beauty of this is that you can use this type of research for an already existing product that is perhaps not doing that great and then relaunch it.

Competition analysis

One of the key elements to ensuring that your business is at its ‘A’ game, is to keep a keen eye on your competition. And no, not just superficial observation. We are talking about deep analysis where you understand their strengths and weaknesses. If you are looking at getting a bias-free, no-nonsense report on all the factors mentioned above, then opting for this type of research is ideal.

Detailed customer satisfaction research

This type of research comes in handy when you are looking at understanding the general standing of your brand. Through this research, you will get insight on how satisfied your target audience is with your products, what they like about them, what they dislike about them, and what they hope you will additionally incorporate into it. If your product is simply not doing well or tapering downwards in popularity, this type of research will help you determine why.

Pure Brand research

This type of market research solely focuses on the rebranding or birthing of a brand. If you are looking at advice on how to create and sustain your brand then this type of research is what you should ideally opt for. Another reason to look at this type of research is if you are looking for a fresh breath of air for your brand through rebranding. This type of market research focuses on how your brand should penetrate a market, what value your brand should give out, how to increase brand awareness, understand your customers and target audience better, and the overall perception of your brand.

Future potential products

Most of the time, the products that a person usually thinks will work wonders, tend to be a disastrous failure that can cost your business millions. Innovation and creation take a lot of hard work. So why not invest it correctly? Through this type of research, you will get an understanding of what kinds of things customers are presently looking for to ease their lives. What kinds of products they hope to have, and what kind of additional changes they wish to see in already existing products. By aligning in this in-depth analysis along with the flavor of your brand, you will have better insight which will, in turn, result in you focusing on innovating and creating products that are in sync with the contemporary needs of consumers.

Campaign impact

If you find yourself putting in all your money and energy into major campaigns but not seeing any results, then you must opt for this type of research. This research dives deep into how well your advertising or campaign is doing, if it is reaching your target audience, how well it is doing, and what better routes you can take so you can ensure that your campaign ends up being a huge success.

In-depth consumer analysis

There is nothing more important than the consumer. If you are looking at ways to understand your customer expectations on a deeper level so you can build a loyal army of consumers, then this is your go-to type of research. This research will solely focus on understanding the already existing impression of your brand and will help you know what your customers are dissatisfied with, prefer or hope from products in general. With this information, you can work on perfecting your product or brand.

While every type of research is crucial towards making any brand a success, mixing and matching the ones that are closest to your requirements are the most helpful. By using all these types of research or even a selected few, the one guaranteed aspect is that your brand will start flying towards the light of success. Good luck!