Why Market Research is Essential for Any Business
In this post, we’ll cover the following:
In the business world, the customer is ultimately the most important part of any enterprise, which means that understanding the needs and requirements of your customer is vital. One of the most common ways this is achieved is through market research.
As a fully integrated marketing agency in Birmingham, our team know all about the importance of market research and will use this article to explain the various types of market research, highlight the key benefits and look at how a new business would typically use market research.
What is market research?
Market research relates to the process of collecting and analysing information about a particular target market or audience. Its purpose is to collect relevant data on your business. It could be related to a product or service, customer habits, a specific industry, or even competitors.
It can be useful at any stage of your business. Many organisations use it as a continuous way of monitoring appetite for their existing products or services, as well as the opportunity to expand their business offering or assess the viability of a business idea when looking to start up.
This data provides you with the means to make informed decisions that will help you align your business goals and improve the effectiveness of your marketing strategy.
Primary and secondary research
There are two main forms of research, primary and secondary, and both can be beneficial depending on the situation your business finds itself in.
Primary research involves original data that you have gathered yourself, this could be in the form of a survey, interview, focus group or observation. The main benefit of this is that you can choose exactly how specific and targeted the research is.
On the other hand, secondary research involves using data that already exists. It is a more cost-effective and less time-consuming research method. However, you are relying on someone else’s data, so it is likely to be less targeted to your audience than primary research.
What are the different types of market research?
There are a variety of different types of market research that you can carry out, including:
Brand research – Relating to the perception and awareness of your brand.
Campaign evaluation – This involves assessing the effectiveness of your marketing messages.
Customer segmentation –This helps marketers target customers with comparable qualities.
Competitor research – Examines the various strengths and weaknesses of your market competitors.
Consumer research – Focuses on understanding why your consumers behave the way they do.
Product development – Gathers information to help create and promote products and services.
Usability testing – The purpose of usability testing is to understand how people use your services.
What are the key benefits of market research?
Market research is an important aspect of any marketing strategy and, as with anything, the more knowledge and understanding you have on a particular topic, the better placed you are to make informed decisions related to it.
Conducting thorough research allows you to develop a better understanding of your audience and what they respond to. You can then use this to develop a customer-focused approach that spots growth opportunities, connects with your audience, uncovers potential problems in advance, and competes effectively in your marketplace.
How would a new business use market research?
When looking to start a new business, it is vital that you carry out market research to help you make informed decisions about your new venture.
Often a majority of this will take place when your business is still just a concept and will include delving into your desired industry and local, regional, or national region to analyse the market and establish if there is a need for your business.
You would certainly need to look at competitors and examine their activities and success in the market, assessing factors such as their pricing, quality of work and the demand for their products or services.
By doing this, you can ultimately discover the viability of your business idea in both the current and future markets, as well as make strategic business decisions that will help set you apart from the competition and help spot any gaps in the market that you can take advantage or tailor your business towards.
How can our digital marketing agency help your business target your customers effectively?
If you are looking for a marketing consultant in Birmingham to help you improve the ways you target your audience, get in touch with us today.
The experts at our digital agency take the time to understand your business and its audience, utilising all the available market research to help produce considered and effective campaigns for our clients.
We look at the data to understand who your customers personas are and what they are looking for from your business, then make informed decisions based on your position in the market.
Let the marketing specialists at EDGE help take your business to the next level. Click here for more information on how we use market research.
