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Market Research is Still Important: Here’s Why

29 June 2022

In an age of big data, some might say that market research is no longer necessary. After all, with so much information available at our fingertips, why bother spending money on surveys and focus groups?

The answer is simple: big data can only take you so far. Sure, it’s great to have access to all of this information, but it’s only useful if you know how to interpret it and use it to your advantage. That’s where market research comes in.

Luckily, our experts have put together this guide to market research, covering some more key reasons why market research is important in 2022 and beyond, and exactly how you can get started.

Why Market Research is Important in 2022

Market research is the process of collecting and analysing data about a target market. It can be used to assess customer needs and desires, understand customer satisfaction levels, and identify potential new markets. Despite the advent of big data and sophisticated analytics tools, market research is still an essential part of any business’s marketing mix. Here’s why:

Helps you understand your customers better

Market research helps businesses to really understand their target customers and current customers – who they are, what they want and how they think. This understanding is essential for any successful business owner in order to create products and services that appeal to them.

Gives you insights into your target market

Effective market research gives you a competitive edge by providing insights into your target market, including what they want, how much they’re willing to pay, and where they’re located. This information is essential when making decisions about product development, pricing, marketing, and sales processes or strategies.

Helps you reach your audience in the right place

As market research can help you reach potential customers in the right places to help them make informed decisions about your product or services, it can also help you to reach them with your marketing messages in the right places too.

Allows you to track changes in customer behaviour

Customer behaviour is constantly changing, and market research allows businesses to keep track of these changes and adapt their products, services, and marketing strategies accordingly. This is essential in order to stay ahead of the competition and maintain a strong position in the marketplace.

Informs your business decision-making

Conducting market research provides businesses with the information they need to make informed decisions about their products, services, and marketing strategies. This is essential in order to stay competitive and be a successful business in today’s ever-changing corporate environment. 

Why is Market Research Important For the B2B Industry?

The B2B industry is a highly competitive one, and businesses need to have a clear understanding of their target market in order to succeed. Market research helps businesses to understand who their target market is, what they want, and how they can reach them. This information is essential in order to create products and services that appeal to them and to reach them with marketing messages in the right places.

Additionally, good market research can help businesses to track changes in customer behaviour and adapt their strategies accordingly. Informed decision-making is essential in any business, but it is especially important in the B2B industry where the competition is fierce. Market research provides the information businesses need to make informed decisions and stay ahead of the competition.

6 Important Types of Market Research

Target Market Research

As we mentioned above, understanding your target market is one of the most important aspects of market research. Target market research work is vital for understanding your target customers and defined target audience, as well as helping you identify markets that are most likely to be interested in your products or services.

To gather data about your target market you can:

  1. Conduct consumer research, social media research, or online surveys
  2. Attend trade shows and events related to your industry
  3. Conduct focus groups or one-on-one interviews with potential customers

Once you have gathered this data, you can use it to create buyer personas which will help you to understand your target market even better.

Competitor Analysis

As well as understanding your target market, it is also important to understand your competition. Competitor analysis or competitor brand research is a type of market research that allows you to understand what your competitors are doing and how they are positioning themselves in the market.

This valuable data is vital in order to make sure you are positioning your business correctly and to make sure you are offering something unique that will appeal to your target market.

To gather data about your competitors, you can:

  1. Conduct online research
  2. Attend trade shows and events related to your industry
  3. Survey customers about your competition

Once you have gathered this data, you can use it to create a competitive analysis which will help you to understand your position in the market and how you can improve it.

SWOT Analysis

A SWOT analysis is a type of market research that allows businesses to understand their Strengths, Weaknesses, Opportunities, and Threats. This information is essential in order to make informed decisions about your business and its future.

To gather data for a SWOT analysis you can:

  1. Conduct internal research within your company
  2. Conduct external research about your industry and market
  3. Interview existing customers, employees, and other stakeholders

Once you have gathered this data, you can use it to create a SWOT analysis which will help you to understand your business and its place in the market.

Secondary Research

Secondary research is another vital element of market research. Secondary research differs from primary research, as it is the process of gathering data that already exists, rather than collecting new data. While regular market research involves conducting surveys and interviews, secondary research uses data that has already been collected by other sources.

This type of research can be conducted by:

  1. Searching online databases
  2. Reading industry reports
  3. Speaking to experts in your field
  4. Conducting a literature review

Secondary research is an important part of market research as it allows you to build on the work that has already been done, and to get a more comprehensive understanding of your market.

Market Trends Research

It’s also vital to know the trends in your market and work them into your business marketing strategy. You can do this by carrying out marketing research on a regular basis. This will help you to identify any new trends as they emerge and adapt your strategy accordingly.

  1. To gather data about market trends you can:
  2. Keep a close eye on your competitors
  3. Monitor social media and other online platforms
  4. Set up notifications for key industry news sources

By understanding the trends in your market, you can make sure you are always ahead of the competition and offer your customers the products and services they want.

Customer Segmentation

One of the most important aspects of market research is customer segmentation. This is the process of dividing your customers into groups based on shared characteristics. This information is vital in order to make sure you are targeting your marketing efforts correctly and reaching the right people.

There are a number of ways you can segment your customers, including:

  • Demographic segmentation: This involves dividing your customers into groups based on factors such as age, gender, income, etc.
  • Psychographic segmentation: This involves dividing your customers into groups based on factors such as lifestyle, personality, values, etc.
  • Behavioural segmentation: This involves dividing your customers into groups based on their behaviour, such as purchase history, brand loyalty, etc.

By segmenting your customer base, you can make sure you are targeting your marketing correctly and reaching the right people with your message.

Creating a Market Research Plan

Once you have decided what type of market research you need to conduct, it’s time to get started with your own market research.

There are a number of ways to conduct research, including surveys, interviews, focus groups, and secondary research. The best way to approach market research is to create a research plan that outlines the goals and objectives of your research, as well as the methods you will use to collect data.

When creating a research plan, there are a few things you should keep in mind:

  1. Define your goals and objectives: What do you hope to achieve with your market research? What are your overall business objectives?
  2. Choose the right research methods: Who do you need to reach with your market research? What method will allow you to reach them effectively? Will you use surveys, interviews, focus groups, or secondary research?
  3. Decide how you will collect data: How will you collect the data you need? What questions will you ask? How will you ensure that your data is accurate and reliable?
  4. Determine how you will analyse data: How will you make sense of the data you collect? What methods will you use to analyse it? How can you turn qualitative research into quantitative data?
  5. Create a timeline for your research project: When do you need to have your market research completed? What milestones do you need to achieve along the way?
  6. Decide how you will use the data: How does this new data impact your business strategies? How will you implement the data you have collected?

By following these steps, you can create a comprehensive research plan that will help you to conduct market research effectively.

How To Conduct Market Research

Once you have created a research plan, it’s time to start collecting data. This can be done through a variety of methods, including surveys, interviews, focus groups, and secondary research.

  • Surveys: One of the most common methods of market research is surveys. Surveys can be conducted online, by phone, or in person. They are a great way to collect data from a large number of people quickly and efficiently.
  • Interviews: Another common method of market research is interviews. Interviews can be conducted in person, by phone, or online. They are a great way to collect detailed information from a small number of people.
  • Focus Groups: A focus group is a type of interview that is conducted with a small group of people. Focus groups are a great way to collect data about how people feel about a certain product or service, and improve your product or services as a result.
  • Business Coaching: Quality business coaching can be extremely helpful when it comes to conducting market research. A business coach can help you to identify your target market, choose the right research methods, and interpret your data. By utilising a business coach, you can ensure that your market research is conducted effectively and efficiently.

Trust the Business Strategy Experts…

As you can see, thorough market research shows essential benefits for businesses, especially in the B2B industry. It helps businesses to understand their target market, their competition, and their place in the market, alongside much more.

At Growth Idea, our Business Strategy Experts have a proven track record of helping companies to understand their markets and develop strategies for success.

We can help your business to conduct market research, understand your target market, and develop a tailored growth strategy that will help you to achieve your business goals.

Book a Free Business Strategy Review Today!

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