What is market research (including the key benefits to your business) …
The definition of market research is the process of collecting and analysing information about a target market, including its consumer preferences, needs, buying habits, and behaviour.
The goal of market research is to obtain insights that can help businesses make better decisions regarding product development, pricing, branding, sales, advertising, and overall marketing strategy.
This information can be gathered through surveys, focus groups, online analytics, and other research methods, not one size fits all.
We spoke about this in more detail in our The Importance of Evaluating Market Research blog this month, as there are different approaches to market research. As market research is much more than reviewing your competitors which is a common perception in the world of business.
As, back in the 1940’s market research was done by hand but now there are more initiative ways to capture data and evaluate in the present tense.
It depends on what you want to improve in the business in which market research can provide solutions to the problem and secondly, whom do I need to speak to and how do they wish to be spoken to; to all maximum opportunity for data capture.
The best way you can encourage this to happen is to ensure your audience understands the benefits of what this research will provide them and the business or company requesting the data. But also for the business owner to understand the key benefits of the business too.
Here are our seven top key benefits market research provides for the business, followed by key benefits to your customer or consumer.
- Helps to identify customer needs and preferences.
Market research helps businesses to understand the needs, preferences, and wants of their customer or buyer.
By knowing what customers are looking for, businesses can create products and services that meet their needs, resulting in increased sales and customer satisfaction.
- Provides insights into the competition.
Market research allows businesses to understand their competitors in more detail whether this is their products, services, or strategies.
Research can help businesses identify their unique selling proposition (USP) and differentiate themselves from the competition.
- Define target markets.
Understanding the target market is critical to the success of any business.
Market research helps businesses to identify their target audiences, such as age group, gender, location, and interests, and tailor their marketing efforts to reach them more efficiently and effectively.
- Assists in product development and strengthens customer relationships.
Market research provides valuable feedback and insights into product development.
It helps to identify gaps in the market, new trends, and customer preferences that can shape product development.
Plus, it can identify how your customer wishes to buy and this can help strengthen the customer journey as the more we understand who is purchasing our products and services the more it can strengthen the relationship through communication and providing what the customer wants.
- Helps to evaluate marketing and advertising campaigns through market research.
Market research helps businesses to understand the effectiveness of their marketing and advertising campaigns.
It allows businesses to analyse consumer behaviour and responses to their ads, helping them to refine their messaging and improve their marketing and advertising strategies.
- Helps improve the decision-making processes.
Market research provides data, facts, and insights that businesses can use to make informed decisions.
Information on consumer preferences, market trends, and competitor behaviour can help businesses make strategic decisions that lead to growth and profitability.
- Creates synergy between marketing and sales (business presence v customer/buyer journey)
The synergy between sales and marketing is an important benefit as a result of market research.
As market research can improve both areas of the business by positioning your marketing more successfully as your research can tell you what products and services you need to be offering in your business, as these are the ones your customers wish to buy.
In reference to sales, market research can benefit from a structure and pricing review and identify where your customers sit demographically or through your target audience.
As the more, we understand the synergy between benefits for the business and the customer. A better experience can be created for the customer or consumer in your buyer journey.
Here are five key benefits your customer or consumer will receive through market research.
- Improved products and services:
Market research can help companies identify customer needs and preferences, leading to the creation of better products and services.
- Prices and value:
Through market research, companies can determine the appropriate price for their products based on customer needs and perceptions of value.
Market research can help companies understand how to communicate with customers effectively, ensuring that they receive relevant and timely information about products and services.
- Customer satisfaction and loyalty:
By understanding customer needs and preferences, companies can create products and services that are more likely to satisfy customers and build brand loyalty.
Market research can provide insights into new product ideas and opportunities, helping companies stay ahead of competitors in the marketplace.
Overall, market research enables companies to better meet customer needs, resulting in improved products and services, stronger relationships, and increased customer loyalty.
As perfectly stated by Elliot Ghali Co Founder from Example Marketing:
‘Market research tells the business owner what our potential customers/clients are looking for to satisfy or solve something and market research helps provide more direction to targets/goals we set ourselves when promoting/directing the business’.
Demonstrating the key importance of what is market research, including how it benefits your business and the customer.
We encourage our readers to consider and choose one area of market research in their business they wish to improve or learn from by understanding how it could benefit them more in business.
If you wish to explore more on the topic of market research for your business, then please review the following link on how it can benefit your business and customers: Market Research – Ask Zoe