The research report (market research) is an important business document which quite often, is prepared by marketing managers, business, technology and academic experts working under the guidance of the marketing manager. Market research reports assist in decision making process about your potential product or service.
The market research report would be your best source of information on the market conditions related to the use of a particular product or service. It has been prepared by marketing managers, business, technology and academic experts working under the guidance of the marketing manager.
Market research is the process of collecting and analyzing data related to the marketplace. Many companies use market research to collect and assess data about a target market or consumer to better understand their ideal audience. For example, if a company wants to target primarily females in their 20s who make more than $50,000 a year, they would compile as much data as possible from this particular market and use this data to influence their marketing decision.
Market research has several purposes that include identifying a potential new market to break into or determining whether launching a new product will be successful with a company’s target audience. Performing market research allows businesses to make informed decisions and use their resources in a way that is most beneficial.
There are two different types of market research that a company or marketing professionals perform: primary and secondary market research. The following are examples of each:
Primary market research
Primary market research refers to any research that a person, company or a person/company conducts or hires another company or individual to conduct. This type of research entails going to the direct source to obtain market research. For example, a person may conduct a survey by asking customers a few questions in person. Other examples of primary market research include:
1. Interviews
Interviews are a common type of primary market research that can be either in-depth or as simple as asking a question. An example of an interview in market research is when a business calls a current customer to ask how they are enjoying a product they recently purchased. Marketers can interview a person in their home, on the street, in the office or in a market research facility. This type of primary market research takes the most time but also typically yields the most valuable information.
2. Focus groups
A focus group is a group of individuals who have been selected to take part in a discussion about a certain area of interest, product or topic. A marketer or organization typically facilitates these groups to to gain more insight on how a particular business, product or service will be received by their target audience. For example, a marketer may ask the focus group a series of questions that gives the marketer a better idea of how the group feels about a certain topic.
3. Questionnaires
Some companies choose to perform market research by sending questionnaires to their existing customers or users who have shown interest in their product or service. A company may ask the customer or person to fill out a survey while in the store or they may send out a survey via mail or email. Examples of questions that a questionnaire may ask include:
- What benefits do you get from this product?
- How does this product compare to other products like it that you’ve used?
- What would you change about this product?
- What would make you a perfect company or brand?
- What is your primary method of communication (for future questionnaires or marketing efforts)?
- What made you purchase this product from our company?
- What features are the most valuable to you?
- Where do you typically do your shopping?
- What income range are you in?
- How old you are?
- What gender do you identify with?
4. Surveys
Surveys allow companies to ask their target audience various questions based on their preferences, demographics and other important factors that influence their spending. When creating a survey, it’s important to first define the problem you wish to explore with your survey. For example, maybe your company wants to improve a particular feature on a product. Knowing this problem will ensure you ask the right questions to better understand how to best address the issue in a way that suits your target demographic.
Next, you should target the right audience by getting clear on the population you wish to survey. You can also incorporate screening questions into your survey that qualify or disqualify the survey takers based on your desired criteria. Lastly, it’s important to use resources when conducting surveys, especially if you want to conduct larger surveys. There are several online survey tools that allow you to survey a large amount of people and compile that data in one succinct location for easy analysis.
Secondary market research
Secondary market research involves assessing data that has already been collected and published by others. For example, you may research a particular topic and note any trends you find based on data already published about that topic. Businesses often use this form of market research when they have a smaller budget or when ample market research has already been performed on a particular topic.
An example of market research is conducting an online search on a particular topic and making note of the most recent data published on that topic. Other examples of secondary market research include:
- Reading trade journals.
- Contacting trade organizations and asking specific questions about a topic.
- Going to a reference library to perform research.
5 Market Research Tips for Businesses
1. Define the objective of your research.
Before setting off on your research quest, think about what you’re trying to achieve next with your business. Are you looking to increase traffic to your location? Or increase sales? Or convert customers from one-time purchasers to regulars? Figuring out your objective will help you tailor the rest of your research and your future marketing materials. Having an objective for your research will flesh out what kind of data you need to collect.
2. Learn About Your Target Customers.
The most important thing to remember is that your business serves a specific kind of customer. Defining your specific customer has many advantages like allowing you to understand what kind of language to use when crafting your marketing materials, and how to approach building relationships with your customer. When you take time to define your target customer you can also find the best products and services to sell to them.
You want to know as much as you can about your target customer. You can gather this information through observation and by researching the kind of customers who frequent your type of business. For starters, helpful things to know are their age and income. What do they do for a living? What’s their marital status and education level?
3. Recognize that knowing who you serve helps you define who you do not.
Let’s take a classic example from copywriting genius Dan Kennedy. He says that if you’re opening up a fine dining steakhouse focused on decadent food, you know right off the bat that you’re not looking to attract vegetarians or dieters. Armed with this information, you can create better marketing messages that speak to your target customers.
It’s okay to decide who is not a part of your target customer base. In fact, for small businesses knowing who you don’t cater to can be essential in helping you grow. Why? Simple, if you’re small your advantage is that you can connect deeply with a specific segment of the market. You want to focus your efforts on the right customer who already is compelled to spend money on your offer.
If you’re spreading yourself thin by trying to be all things to everyone, you will only dilute your core message. Instead, keep your focus on your target customer. Define them, go deep, and you’ll be able to figure out how you can best serve them with your products and services.
4. Learn from your competition.
This works for brick and mortar businesses as well as internet businesses because it allows you to step into the shoes of your customer and open up to a new perspective of your business. Take a look around the internet and around your town. If you can, visit your competitor’s shops. For example, if you own a restaurant specializing in Italian cuisine, dine at the other Italian place in your neighborhood or in the next township.
As you experience the business from the customer perspective, look for what’s being done right and wrong.
Can you see areas that need attention or improvement? How are you running things in comparison? What’s the quality of their product and customer service? Are the customers here pleased? Also, take a close look at their market segment. Who else is patronizing their business? Are they the same kinds of people who spend money with you? By asking these questions and doing in-person research, you can dig up a lot of information to help you define your unique selling position and create even better offers for your customers.
5. Get your target customers to open up and tell you everything.
A good customer survey is one of the most valuable market research tools because it gives you the opportunity to get inside your customer’s head. However, remember that some feedback may be harsh, so take criticism as a learning tool to point you in the right direction.
Creating a survey is simple. Ask questions about what your customer thinks you’re doing right, and what can be improved. You can also prompt them to tell you what kinds of products and services they’d like to see you add which gives you amazing insight into how to monetize your business more. Many customers will be delighted to offer feedback. You can even give customers who fill out surveys a gift like a special coupon for their next purchase.
Conclusion
If you’re considering the launch of a new product or service, we’ll guide you through the process and help you decide if it’s a good move for your company.(please note: we supply market research reports not writing marketing reports)