What is Market Research?
Market research is a simple term for an involved process. Broadly, it is gathering information about (a) target consumers (b) your competitors and (c) previously successful marketing campaigns. Essentially, it gives you a sense of the landscape around the space your business occupies.
When you get a market research report from Creative, it will include everything you need to build a successful marketing plan: data about your target audiences, information about your industry as a whole, and what your competitors are doing to keep their edge. This allows you to plan for the future of your business without all the guesswork.
Market Research FAQs
How do you conduct market research?
When developing and implementing your business plan, you should always consider using research and data. Primary sources of data are actual users or potential customers. Secondary data includes reports, studies and information already collected by others.
What are some primary data and research tools used for market research?
Surveys: Ask customers questions to better understand how they feel about a product’s features, an experience, their description of an ideal solution to their problem, etc. Surveys can be completed on paper, by phone, online, or in person.
Focus Groups: Bring together a group of 8-12 people with a common characteristic: age, hobby, buying habits, etc., to get a better idea of their personal preferences. A moderator poses questions and records the group discussion as a useful tool to get feedback on a new product, new features, or a new ad campaign.
Observation: The researcher gathers information by simply watching how someone interacts with a product, frequently used in comparing preferences for several types of products.
Interviews: Usually done on a one-to-one basis and involving in-depth, probing questions in order to better understand a person’s product preferences.
What does SWOT stand for, and how does it relate to market research?
SWOT stands for:
These are the capabilities and resources that are used as the basis to define and develop your competitive advantage. (i.e., patents, brand, good reputation, cost advantage, etc.)
The absence of strength in particular areas. (i.e., lack of patent protection, a weak brand, a poor reputation, high costs, etc.)
Look for ways your business can position itself to fulfill a unique niche or demand. (i.e., unfulfilled customer need, arrival of new technologies, loosening of regulations, etc.)
Changes in the external environment surrounding your product or service may challenge your growth and success. (i.e., shifts in consumer tastes or habits away from your business/products, emergence of new/substitute products, new regulations, increased trade barriers, etc.)
A SWOT analysis is a useful tool that provides information to help match your company’s resources and capabilities to the competitive environment in which you operate.