Following the recent article published on the 31st of October, How to conduct different types of market research? – Ask Zoe
The question was asked to explain market research in a more direct way, so the best way we can share this is to explain what the definition of market research for your business is. Although the result will be different per business reading this article, the principles of market research will remain the same.
As market research in business refers to the systematic process of collecting, analysing, and interpreting information about a market, including details about potential customers, competitors, and the overall industry.
The primary goal of market research is to provide businesses with insights that can help them make informed decisions, identify opportunities, mitigate risks, and develop effective marketing strategies.
Key components of market research in business include:
- Data Collection: Gathering relevant data from various sources, which may include surveys, interviews, focus groups, observations, and existing market reports. The data collected can be either primary (directly obtained from original sources) or secondary (previously collected by others). In our opinion, primary is always our recommendation to ensure the information is current and Up-to-date.
- Data Analysis: Examining and interpreting the collected data to drive meaningful insights. This involves statistical analysis, qualitative coding, and other methods to identify patterns, trends, and correlations.
- Market Segmentation: Dividing the target market into distinct groups based on characteristics such as demographics, psychographics, behaviour, and preferences. This segmentation helps businesses tailor their marketing strategies to specific customer segments.
- Competitor Analysis: Evaluating the strengths and weaknesses of competitors in the market. Understanding the competitive landscape allows businesses to identify opportunities for differentiation and areas where they can gain a competitive advantage. A SWOT analysis is a great tool to use for competitor analysis or you can use our interpretation which is the CAR analysis, which you can download here: The CAR Model – Free Video Series – Ask Zoe
- Consumer Behaviour Analysis: Studying how consumers behave, what influences their purchasing decisions, and how they perceive products or services. This information is crucial for designing marketing campaigns that resonate with the target audience. Plus, it is key to remember that most buying decisions are based on emotion and customer pain points first and foremost, followed by justification.
- Trend Analysis: Identifying current and emerging trends that may impact the industry. This helps businesses stay ahead of changes in consumer preferences and technology, allowing for proactive adaptation. A prime example of this at present is platforms such as TikTok and viral content being used to influence the buyer.
- Market Size and Forecasting: Estimating the size of the target market and predicting future trends. This information is essential for determining the potential demand for a product or service.
- Risk: Evaluating potential risks and challenges in the market, such as regulatory changes, economic fluctuations, or shifts in consumer behaviour. This enables businesses to develop strategies to mitigate these risks.
Tom summarizes the definition of market research we would say, that by conducting comprehensive market research, businesses can make informed decisions, reduce uncertainties, and increase the likelihood of success in their marketing and business goals.