Market Research Explained, and what are the business benefits?
What is Market Research?
Collins English Dictionary – Market research is the activity of collecting and studying information about what people want, need, and buy.
But there’s much more to be explained than a simple dictionary definition can cover. There are two types of data you can gather when conducting your market research, quantitative or qualitative. Quantitative data is information that can be measured, representing the figures and hard truths you need to know about when making important decisions. Qualitative data is all about information that can’t be measured, it focuses on the qualities of a product and the opinions of the market.
How to use market research?
If you need to gather data on your market, you’re going to want to know how to use it most effectively. Before conducting your research it’s important to determine what you need to know and how you’re going to find out about it, and what will the business benefits be? Set the goal for your research and this will guide you to gather the most appropriate, accurate, and actionable information.
Once your research is complete you can analyse the results. Compare them with your prediction and your previous actions to know exactly what to do next. Reliable data is essential, but don’t forget that how you analyse that data is equally important for good decision making. The true power of data is the knowledge and insights you gain through intelligent analysis.
What ways could you use to conduct market research?
If you’re looking to gather qualitative data you could choose to conduct interviews. This is a very personal way to carry out your research that provides you with a lot of scope to learn more about your potential customers. This type of research is ideal for creating new buyer personas. Doing your interviews over the phone cuts down a lot of the logistics. The phone enables you to do more interviews in a shorter space of time. In contrast to a face to face interview which more time consuming.
Another method for gathering qualitative information is to use focus groups. If you select one quality from your buyer persona and use that to assemble a focus group, you can gain a more varied and in-depth view of how your product fits into the market and what qualities are most valuable in a competitive context.
What is Quantitative data gathering
Quantitative data gathering (as the name suggests) requires much larger volumes to get the necessary results. A common way to gather quantitative data is through surveys. They can be sent digitally or filled out in person, there’s a lot of flexibility in how you can distribute surveys which is important for getting the volumes you want.
Nowadays, data is everywhere. It’s presented to you by Google, Facebook, and any other digital service you find yourself using. The most important thing about this data is how you use it.
Market research is all about gathering information about your market to make informed decisions. You need to know what data you need before you start your research. This enables you to get the data you need to make the right decision. Deciding on a goal will help you determine if you need quantitative or qualitative data and what method will be best to gather it. Market research is essential for all marketing activities and is a tool we rely heavily on in the branding industry. Check out our Knowledge Hub to learn more about marketing.