According to Entrepreneur, market research is the process of gathering, analyzing and interpreting information about a market, a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service. Researching the characteristics, spending habits, location and needs of your business’s target market and the industry as a whole is crucial. Understanding your market is important to finding success as a company, and in this blog, we’ll be showing you how to do just that.
What is market research?
Market research is about understanding your current and potential customers. It helps companies put together a full profile of what their ideal client looks like in terms of buying habits and interests. Market research also helps you analyze potential clients’ personal information such as age, income and gender and location. This type of information can help a company target its market directly and strategically. Breaking down your market allows you to tailor your marketing efforts, discounts, and offerings in such a way that they appeal to more people in your local area. The better you know your market, the more effective you become at selling your products and services.
Market research for a small business can be broken down into a few easy strategies.
The first is government-funded and preexisting research. Find out the average income, common industries, and the average age of your community using online tools, such as U.S. Census data.
After you’ve obtained the preexisting market research, consider performing your own. Surveys, interviews, focus groups, and observation are four tactics your facility can use when starting market research. While focus groups and interviews may be more difficult to obtain and use effectively, a simple online survey is a great way to start. After developing a survey that asks about demographics, interests, employment and more, you can distribute the survey online. You can email the survey to current and potential clients as well as post it on local forums or Facebook groups. Ask questions that help you learn what your community is interested in with regard to the specific product or service your company offers.
Turning results into action
Once you have an understanding of the market you want to target you can then start targeting your digital campaigns to align with those findings. According to adlucent, 71% of audiences prefer tailored content, and having a grasp on your audience will allow you to run pay-per-click and social media campaigns that generate viable leads.
According to Medium, Netflix and Apple did their market research prior to other competitors and utilized open gaps in the movie, shows, and mobile phone segments. The more you know, the more effective your company can be.
Long-term market research
Markets change, and you should reevaluate your market every few years to ensure that you are still creating marketing and business efforts that work to achieve business goals and your customer’s long-term needs. While understanding your company’s market can sound straightforward, the in-depth research you do may just be the crucial step you’ve been missing to increase revenue. Long-term market research can result in a predictive understanding of what will happen next in your market, giving an edge against your competitors.