How to Do Market Research - The Basics market segmentation - quantitative methods - quantitative results - current sales marketing strategy - demographic - marketplace - current practices - customers’ needs - target customers Market research provides critical information about your market and your business landscape. It can tell you how your company is perceived by the (1)_______ and clients you want to reach. It can help you understand how to connect with them, show how you stack up against the competition, and inform how you plan your next steps. Market research can also play an important role in the process of developing your products and services, bringing them to the (2)________, and marketing them to consumers. Here are a few ways that market research can help inform your business strategy: - - - - - It can give you an accurate view of your business and your marketplace. For example, you can see how you are perceived in comparison to your competitors, and evaluate what your competitors are doing to attract customers. It can help you determine who and where your customers are, and which customers are most likely to do business with you. (In fact, for customers who indicate that they don’t want to do business with you, market research is your opportunity to ask them “why not?”.) It can reveal how customers and prospects view your existing business and products, and show you if you are or are not meeting your (3)________. It’s even possible you may uncover some opinions about your business and/or products that you weren’t aware of. It can help you decide whether a new idea for a business or product will fly – that is, if customers will find it appealing – based on how similar products have performed in the marketplace. It can help you make wise product packaging and promotional decisions, as well as effective marketing messages. For many businesses, market research is a key component in developing (4)________ by providing a fact-based foundation for estimating sales and profitability. In fact, it can make the difference between making wise decisions that drive business forward and poor decisions that can damage your business. The competitive environment you face is increasingly challenging. It’s safe to assume that your competitors are conducting research to gain their own advantage. That may be the best reason of all to make market research a key part of your business growth strategy. Types of Market Research Primary Research: The goal of primary research is to gather data from analyzing (5)________ and the effectiveness of (6)________. Primary research also takes competitors' plans into account, giving you information about your competition. Primary types of market research methods include: ● Focus groups: Using a small group from a specific demographic to give reviews and feedback on particular products and services ● Surveys: Asking customers a set list of questions to record their opinions on new products ● Interviews: Asking customers conversational, open-ended questions in a one-on-one virtual or in-person setting to gather opinions and preferences ● Observations: Watching how customers interact with specific products for mannerisms and ease-of-use ● (7)________: Dividing your consumers into demographics and analyzing data through that lens to better meet their respective needs Secondary Research: The goal of secondary research is to analyze data that has already been published. With secondary data, you can identify competitors, establish benchmarks and identify target segments. Your segments are the people who fall into your targeted (8)________--people who live a certain lifestyle, exhibit particular behavioral patterns or fall into a predetermined age group. Collecting Data No small business can succeed without understanding its customers, its products and services, and the market in general. Competition is often fierce, and operating without conducting research may give your competitors an advantage over you. There are two categories of data collection: quantitative and qualitative. (9)________ employ mathematical analysis and require a large sample size. The results of this data shed light on statistically significant differences. One place to find (10)________ if you have a website is in your web analytics. This information can help you determine many things, such as where your leads are coming from, how long visitors are staying on your site and from which page they are exiting. Qualitative methods help you develop and fine-tune your quantitative research methods. They can help business owners define problems and often use interview methods to learn about customers' opinions, values and beliefs. With qualitative research, the sample size is usually small.
