doing a high quality market study – WAU
The market study makes it possible to understand quantitative and qualitative aspects of the niche that you intend to operate or are already operating. It will act as a guide for determining the effectiveness of your advertising campaigns and marketing campaigns. This type of study is very important for business, since it is known that: […]
The market study makes it possible to understand quantitative and qualitative aspects of the niche that you intend to operate or are already operating.
It will act as a guide for determining the effectiveness of your advertising campaigns and marketing campaigns.
This type of study is very important for business, since it is known that:
- the target audience (Persona);
- the main buying behavior of consumers;
- the main segments of the niche.
Like this, through market research, it is possible to have a holistic view of the desired niche and create action strategies for the business.
However, to achieve this result, it is necessary to conduct a market study in an appropriate manner and with high quality.
In this post, you will understand what are the main types of market research existing and some steps that must be taken to carry out a relevant and assertive market study.
Discover the main types of market research
Market research consists of the organized effort to collect information about specific niches and consumers.
Generally, this type of research is done using statistical methods and techniques so that the information obtained can support strategic business decision-making.
There are several classifications for market research. One of the existing classifications divides this type of research into:
- opportunity research: sale, product and market;
- sales effort research: sales organization, distribution routes and advertising.
Another classification divides market research into 3 different subtypes.
The first one is exploratory research, which aims to discover new trends.
The 2nd subtype is the descriptive research, which aims to describe the characteristics of a given situation.
The 3rd subtype, the experimental research, is designed to test specific hypotheses about a certain aspect of the market.
A satisfaction survey methodology that is widely used in the world is the Net Promoter Score (NPS) Market Research. In this research method, consumers answer the following question: “how much would you recommend our company to a friend, on a scale of 0 to 10?”.
Respondents who grade 9 and 10 are considered promoters of brand; those who give grades 7 and 8 are neutral; those who give grades equal or less than 6 are considered detractors of brand.
Another example of market research is to make a name test for new products and services, because choosing the name for a new venture is not an easy task and has a great impact on the business.
Through this type of research it is possible to check whether people like the sound of a name or not. It is also possible to assess whether the name refers to the idea of a cheaper or expensive product, in addition to making it possible to assess the interviewees’ purchase intention.
A type of exploratory research that can generate insights interesting is the consumer habits market research focused on social networks. From this type of research, it is possible to know which is the most appropriate social network for the brand to be present, taking into account the habits and profile of the target audience.
Therefore, there are several types of market research, and the most appropriate format to be used will depend on the company’s demand.
Discover 7 steps to a successful market research
Many businesses are started without a good market study or planning. This is a very common mistake and can cause several problems.
Thus, doing a quality market study is essential for anyone who wants to have a successful business.
For a market study to be efficient, it does not have to be complicated. However, it is essential to know what is the fundamental structure that a market study must have.
Some essential aspects that a market study must cover are:
- entry barriers;
- target market;
- target market needs;
Segmentation can be defined as the process of identifying the profile of different groups of buyers in relation to their needs and preferences.
Depending on the market in which it operates, it is very important to segment the target audience, especially if competitors already adopt this stance.
Having a target market consists of identifying a niche market that has the potential to generate profitability.
In addition to identifying the target market, it is very important to identify the needs of the target market, that is, know what the needs of the target audience of a niche are and how the product and / or service that will be offered can meet those needs.
Assessing the competition is a very relevant aspect in a market study. It is not enough to know the needs of the public for a niche in the market, it is also necessary to know what the competitors are doing and offer differentiated solutions to consumers.
Before starting a business, one aspect to be considered is the possible barriers to entering the market. As its name implies, this aspect refers to obstacles that need to be overcome to enter the market niche.
Identifying barriers to entry in the market also serves to discover how difficult it is for new competitors to invest in the same niche.
It is necessary to consider all the regulations involved in the business. A market study, therefore, must consider costs with bureaucracies and hiring accountants, lawyers, among other specialized professionals.
See, below, a step by step to help you prepare a market study in a simple and efficient way:
1. Define the questions to be answered with the study
Before starting a market study, you need to know why it is needed.
Usually a market study is done to find out the feasibility of a new venture, to launch a new product, to identify business opportunities, etc.
Then, define which are the questions for which you want answers, as this will give all the direction of the research to be carried out, impacting the analysis and the conclusion of the results.
2. Identify the target audience and target it
Knowing the target audience well is essential to elaborate marketing and sales strategies. You need to know specific information like:
- where they live;
- what they like or don’t like to do;
- how they prefer to be served;
The most common criteria for targeting your audience are:
- geographic targeting: where the target audience lives and works;
- demographic targeting: characteristics such as sex, age, social class, etc .;
- psychographic segmentation: values, lifestyle and personality;
- behavioral segmentation: where the target audience is looking for content and products.
From this information, it is possible to create business personas, that is, semi-fictional representations of your ideal client.
3. Check who are the competitors and their main actions
This stage of the market study consists of identifying which are the other companies that offer the same product or service that you want to sell. This makes efficient Benchmarking possible.
In addition to knowing who the competitors are, one must understand:
- how they work;
- what are your strengths and negatives;
- which channels they use to service customers;
- what is the profit margin of the products or services they offer;
4. Check the regulations on the target market
It is important to know which governmental bodies and even non-governmental institutions have an influence on the target market that one intends to operate or is already operating.
5. Select and develop techniques for collecting information
To obtain the necessary information to answer the previously defined questions, you must first select the most relevant research techniques for each objective. Research techniques can be qualitative or quantitative.
The techniques qualitative are concerned with meaning, not numbers, and may reveal consumer opinions, motivations and attitudes. The 2 most used qualitative research techniques are the group discussion and the Personal interview.
Already technical quantitative they are made to obtain quantifiable data, which can be subjected to statistical treatments. In this case, they are generally used forms and questionnaires.
6. Collect the information and analyze the data obtained
To collect the information, you can search the internet, get in touch with government entities and the target audience, in addition to visiting competing companies.
After collecting the information, it is important to organize it so that results can be analyzed and the study conclusions drawn up.
7. Include the results of the market study in the business plan
After conducting a market study, you will know:
- what are the best sectors or market niches to invest in;
- what are the current market failures;
- where there are good opportunities;
- and how your competition works.
It is important to use all this information to prepare the business plan and have a holistic view of the enterprise.
Thus, there are several types of market research, and the most suitable format to be used depends on the questions that are intended to be answered and the company’s demand.
In addition, in order to conduct an efficient market study, it is first necessary to define the questions to be answered with the study. It is also necessary to identify the target audience, segment it and check which are the competitors and their main actions.
Be sure to check the regulations on the target market. After selecting and developing techniques for collecting information, it is necessary to analyze the data obtained and include the results of the market study in the business plan.
Want to know more relevant information about market research? Then read the post “5 ways market research can boost your content”!