Definition of Market Research
Market research can be divided into two segments in order to solve a client’s problem: Identifying problems and Solving problems. The market team should focus on research to identify the problems and make a note of them. The process goes further and makes the right decision to come up with a solution to the problem. Research can be done in many ways and so the solution. It depends on the marketing team what their approach will be. The more creative the marketing team is, the more effectively they solve the problem. Let’s dive deeper to understand the process.
Identifying Problems
Conducting market research helps to identify where the problem lies. To solve a problem one must identify the problem first. Once the market research is done one could identify the area that needs to be improved. The issues need to be addressed in order to be a bigger brand. Companies often find difficulties with their branding. Here, we have discussed some of the factors below:
Brand Logo
A company’s brand logo is the identity of the company. Every company has to fix their logo according to its niche. Various factors should be considered here to create a brand’s logo like how people see the company, what services the company provides etc. Every company has their own colour palette that should be included in the logo. It depends on what the customers think about the company. The perception of the customer has to be taken into account and also what the customers want from the company.
Market Characteristics
It is extremely important to know the market well. One has to understand that the market differs in area, behaviour, society etc. One can not apply the same marketing strategy to eastern countries and western countries. All one has to do is make separate plans for each part of the world. The culture makes a huge difference to sales. If the company identifies these factors and works on them, it can sell its product effectively.
Data Analysis
The way of identifying problems has changed a lot over the last few years. Now, people rely on data to understand where the problem is. It is both science and creativity at the same time. There are various sources from which we can get data. Adding different filters to it can actually help to identify problems more accurately. Here, research is very important to get those data and put them in order.
Market Potential
It defines how much profit one can get from the market. One should do research very carefully before fixing the packaging and pricing of the product.
Market Share
It is the total percentage of product sales compared to other companies. It also helps the companies to understand where they stand in the market, where they are doing well and where they lack. Market share helps to differentiate companies from their competitors.
Solving Problems
Now that the problem is identified the next step is to find a solution. Here, creativity comes into action. The more creative the marketing team is, the more unique they bring out the solution. It requires a lot of research to find a solution. It capitalizes on the opportunities for growth of the company. Few steps for solving problems:
Distribution Research
The marketing team has to identify the places where the product would perform well. Depending on the social structure product sales increase or decrease. So, the companies have to act upon this factor. The research has to find which vendors are going to sell their products, and who are going to be the retailers. Even the distribution has to be well planned so that they will not find any difficulties in future once they set up all these things. Also, the inventory has to be placed in a place where they can easily distribute products.
Market Segmentation
There is a need to group customers on the basis of the background of the customers and their purchase behaviour. It depends on the characteristics of the customers how the companies run ads. This part of the research allows the company to understand who the targeted audience is. Both qualitative and quantitative data have to be followed to understand market segmentation.
Pricing Research
This is as important as any other step. Setting a price is a really tough thing. You have to consider several metrics in order to fix the price of a product. Whether keeping a low price tag can get the customers or not or if the price of the product hikes a bit the same customers would buy it or not. Even the companies have to take care of their profits. If they keep it low, they are not compromising the quality of the product. If the targeted audience is sensitive the company has to take every step very carefully. All the aspects have to be taken care of in order to get customer satisfaction.
Product Research
Product research either helps the company to create new products or upgrades the older product. Here, the company tries different components to see which is performing better. Thus they create a new product which can do well in the market or they update a product to compete with another product similar to that one.
Advertising Research
Once the product is ready the company focuses on marketing campaigns. They have to come up with an idea in which way the product can reach its potential customers or how they should target their selected audience. The company has to research the medium of promotion. Whether it is going to be online, commercial or print. Choosing the right option can actually help you to reach your targeted audience. As we are in the digital era every company is targeting their audience digitally as it is heavily data-driven. As it includes a lot of money, choose your path wisely.
