Market research can reveal the intention of your customers, and behavior. Figuring these things out can guide you to such decisions that can be profit-making. This blog throws light on what market research is, its significant purpose, and the components of market research.
Let’s get through the purpose, first to understand what it is.
What Is a Market Research & What are Its Examples?
Market research refers to practicing systematic collection, recording, and getting deep with the collected data to figure out business-related problems. Mainly, these challenges are connected with market and marketing research. When it comes to discovering challenges with a marketplace, it covers all related details & elements of market research like products, price, promotion, and distribution of the 4Ps (Product, Price, People, and Promotion) of the marketing mix.
For marketing research, finding feasible and economical solutions for promoting products, brands, or companies is the primary concern. It can be anything from simple surveys to action, decision, and problem-specific research. This is a very controlled process, wherein the researcher collects non-routine marketing problem-based insights using data mining techniques. These details cover all elements of marketing research that directly impact the marketing of products and services. Multiple examples are there conveying the excellence of market research. We have Starbucks, Apple, McDonald’s & LEGO as live examples of these researches.
Four Key Elements of Market Research
- Discovering What Actually You Want to Achieve
Every brand searches for recognition and leadership in the niche. These are the foremost priorities of any business. But, the element of a market research report includes any of the aforementioned factors, which may lead to drilling limitless possibilities for growth and maximizing revenues.
There is always an opportunity when you have a clear goal. IKEA, for example, is a popular brand that has been famous for selling innovative furniture. Although, it has integrated an augmented reality application to let users exactly discover how a round table, chair, or a best would look like in the real environment.
But, its researchers were aware of the fan-following of the senator Bernie Sanders. The snapshot wherein he appeared sitting comfortably on the chic and sleek IKEA chair became a discovery to attract opportunities.
The researchers drew this snapshot from the memories of the brand. They discovered the fame of the senator and connected perfectly with the image wherein he was on the brand-made chair. It became a viral meme and this moment attracted opportunities to sell more and more. The brand knew that it wants recognition from a powerful personality because its products’ quality is incredible. And, the senator’s image brought it up.
- Listen to What Your Customers Say
A customer never accepts a brand that ignores his pain point. He reaches out to a company to find solutions. This is why Google itself has given priority to product reviews as a ranking factor for eCommerce companies, which are actually the voice of customers.
Overlooking their requirement can cause an irreparable loss, as this element of market research states. So, avoid this practice. Market research can help in this regard. You can actually understand the likelihood of prospective customers.
Tide, a famous washing detergent brand, leveraged the fact that customers struggle with the dripping or fading color of their beautiful and luxurious dresses. So, it came with a tweet, which had two dresses, one in blue & black and the other one is white with a tagline-“Looks like a problem when you don’t use Tide Plus Colorguard ”. This tweet became a rage over the internet.
So, you can rely on online surveys, focus groups, tweets, adverts, and observations also to discover the voice of your customer. Listening to them can pay you out with maximum profit and loyalty of customers.
- Find out the Source
For finding insights, you need to collect samples and niche-based data. This is one of the parts of marketing research. No matter how you have collected it, you must be aware of the source. This element of market research says that it should be authentic and reliable. Customers are smarter these days. They check out reviews and feedback before making a buying decision.
Heineken, for example, is famous for its ability to discover what people rely on. It thoroughly researched and found that the Netflix show “Squid Game” can be a marketing pick. So, it did smartly use this series’ popularity on Instagram, where it smartly put a quote below its picture –Liked by Aj-Jackson and others.
It found the source to rely upon and immediately converted it into an opportunity.
- Recognize What You’re Doing
Figuring out a solution can never be a success unless you know where you’re going. Otherwise, you can pay out needless resources, which can cost you a hefty loss. You need valid reasons to choose a platform for walking on. If it’s proven, your decision can easily prove a big win. So, always ask the right question to get an accurate reply. Doing this is related to the elements of the market survey.
When Pepsi once came out with its Halloween campaign suggesting that dressing as a Coca-Cola can be a scary costume, Coca-Cola recognized that this negative campaigning can be answered with research. Its research team brainstormed and came out with a decision to display the same graphic with the name of its business rival. This counter advert proved advantageous for these brands.
What is the Purpose of Market Research?
This research is actually a discovery, which is based on a thorough study of product planning and development, pricing, distribution, market competition, the effectiveness of marketing strategies & practices like advertisement and personal selling, and understanding buyer behavior in the marketplace.
So, the whole-sole purpose of this knowledge discovery is to offer feasible alternative solutions. These solutions, as aforementioned, can be related to marketing, branding, efficiency, or productivity problems. In all, this research covers products, services, and consumers. These all have a great role in analyzing and predicting the market trend by focusing on all key elements of market research in a report.
Starbucks, for instance, discovers insights on cultural trends, social media, customer feedback, and in-store product testing. The insights driven from these verticals help this coffeehouse chain to sustain the challenge and lead towards leadership, which it is actually doing.
Elements of Market Research Survey
These all components are a part of a market research survey.
- Market size
- Sales analysis
- Geographic location
- Market segmentation
- Demographic description
- Analysis of market demand
- Competition in the market
- Consumer insights & requirements
Elements of Marketing Research
These all are included in the key elements of a marketing research report.
- Product research
- Distribution research
- Advertising and promotion research
- Sales research, covering methods and policies
Market research is all about discovering insights into the market and marketing elements. It covers all factors impacting both like consumer analysis, sales analysis, and more. Its four elements shape the whole research, which is to discover the goal, listen to customers’ voices, rely on valid sources, and recognize the steps of what you do.