Market research gives you marketing intel and helps you develop better business plans and marketing strategies.
Your Brand’s Market Share Potential
One benefit of market research is that you’ll understand your brand’s market share potential. Market share potential represents the percentage of your industry’s total sales that could be earned by your company over the coming years.
A market research consultant will firstly help you measure your company’s potential in your particular market, giving you a clear understanding of the “meaning” your customers have assigned to your brand. Secondly they can help you understand the implications of that meaning. Their expertise is invaluable in formulating the questions to ask your target audience, as these are the key to understanding what your true market share potential will be. Without this information, you may be steering your business blindly, and if your competitors do have this information, you might find yourself outmanoeuvred.
In a highly competitive market, there must be a demand for what you are selling, and to penetrate the market, you need to be very clear about who your target audience is. Quality market research will answer questions such as:
- Who are the targeted customers?
- What do customers need or want?
- When do customers purchase the product or service?
- Where do customers purchase similar products or services?
- Why do customers purchase similar products or services?
Your Optimal Market Segments
Digging deeper, market research can help identify specific market segments. Market segmentation is a strategic tool for improving the effectiveness of product and service targeting and messaging. By segmenting markets based on differences in customer characteristics and needs, companies have a better opportunity to identify product, service and company differentiators that will resonate with the target segment.
Elements of Market Research
Research takes a lot of time. Interestingly, a market research consultant may spend almost as much time formulating the questions for your market research as they will spend in analyzing the results of their surveys.
A market research process starts with gathering insight and strategic direction from key company stakeholders. Information may also be gleaned from your customer database and past research initiatives. Then, strategic research is conducted as a means of exploring consumer perceptions of brands, products and services by delving into subconscious beliefs and attitudes that drive behaviour. This often includes both qualitative and quantitative market research. Qualitative market research uses unstructured or semi-structured techniques to collect data. These can include individual interviews or group discussions. Quantitative market research typically includes customer surveys and questionnaires. These can be conducted face-to-face, over the telephone, via post or email or via a webform.
The final analysis based on the completed market research can help:
- Establish the soundness of a venture
- Develop a strategy and plan
- Determine market needs
- Monitor competitors
- Find new opportunities
- Identify potential challenges
Working Together to Build Your Company
Marketing research will help you solidify your business vision, allowing us to create the best strategically on-target brand story for your business. Mindspin can consult to provide foundational market research and reports for smaller businesses. For more in-depth research and recommendations, a specialized market research consultant could be the answer.