Imagine market research like a map by which businesses can navigate. Of course, this map can’t guarantee you that you will arrive safely at your destination. You have to be precise and ensure no wrong turnings to avoid losing yourself. Sometimes the map may have a lack of details or even be out of date.
The same situation is with market research. If you don’t know where you are going, you can easily collide. The techniques that are used in market research can also be used in other areas of the business. However, market research is more than gathering relevant market info and the interpretation of data. It’s more about keeping eyes and ears open and reducing risk while implementing marketing decisions too.
Market research can be segmented into two basic categories:
- Problem-identification research (helps marketing teams identify what types of business problems they might have.)
- Problem-solving research (identify ways to solve these business problems through marketing mix and segmentation.)
Category 1: Problem-identification market research
Identifying the problem that postpones the success of a product/service is not an impossible mission with high-quality market research. For example, if you are implementing a new project in your company, you might want to discover a potential dilemma. Also, you might want to discover the opportunity that you forgot to take into consideration before writing the project.
BizzBee Solutions can help you discover any of the following factors through problem-identification research:
1. Brand image: how your customer perceives your brand
Business practice shows that it is extremely important to be aware of how customers view your company and what their opinion about your solution is. You can determine easily which strategies to use in order to positively influence your brand image.
2. Market characteristics: your target market characteristics
The same one-size-fits-all message is not effective anymore, you can’t expect that your customers function and make purchase decisions in the same way. Consequently, you need to consider all aspects that drive different customers to buy your service. For example, users on the West Coast of the USA can have completely different buying behaviors in comparison to those on the East Coast. Market research will assure that you recognize these differences between subcultures, and meet their needs.
3. Market potential: how profitable is your solution
Researching your market can clarify how much your product’s potential profit can be. By discovering how your target audience reacts to advertising and price changes before they decide to take action, you will be one step ahead and therefore prepared to market to your consumers more accurately.
4. Market share: Percentage of total product sales compared to your competitors
Market share is an important metric that needs your full attention. It gives you an estimate of the amount of the market your company holds. Furthermore, it is a foundation to compare your business growth to your competitor’s. Also, it can reveal some of their capabilities and strengths and help you develop an appropriate strategy too.
Category 2: Problem-solving market research.
Once you identify your marketing problem, you need to do research on how to solve it. The following research options BizzBee Solutions service uses will help you solve potential business problems and grab new opportunities as well:
1. Distribution research: where to sell your product
This part of the market research can help your sales team determine where your product should be sold and how to get it there. Moreover, it allows your company to create the most effective strategy for how to get your product from the manufacturer to the retail shelf. Furthermore, it helps you determine where your inventory will be held.
2. Market segmentation: grouping customer by similar backgrounds or purchase behaviors
Segmenting your market will mainly affect your marketing efforts. As a result, your marketing team needs both qualitative and quantitative data to accurately understand your market segments. Then they can start designing advertisements to attract those specific groups.
3. Pricing research: shape the ideal price for your product
Yes, determining the price for your service is one of the most challenging, but necessary steps. When setting a price, keep your customers in mind. Consider how sensitive they will be if you begin slowly increase the price? Or maybe they can be gained through lower prices? Furthermore, don’t forget about the main goal, to maximize your profits. In this stage, getting familiar with your customer’s reactions to price sensitivity is essential.
4. Product research: test your products
Observing how your service works and how users can interact with it, will help you compete in your target market effectively. By testing different components of the service, you can not only identify hidden issues but also discovers new ways how to modify existing products.
To sum up, owners of companies tend to build a picture of their markets in their own head. They feel that they understand what is going on better than any outsider can tell them. However, their individual and shallow research is full of mistakes and inconsistencies.
Hence, the demand for market research services has grown rapidly in the late twentieth century. Using the help of market research agencies for problem identification and problem-solving is essential to make your company stand out in the targeted market. Last, classifying your business problems should always come before attempting to solve them. Otherwise, you might be spending valuable resources to resolve the wrong problem.
Do you need help to research your target market? Our service is here for you!
Danco is a serial entrepreneur, founder and CEO of BizzBee Solutions, proud father of a 2-year-old and a burger enthusiast. He is inspired by growth and goes above and beyond to make it possible – whether it comes to his 300+ clients or his people. Eager to learn more? Follow Danco on LinkedIn and Facebook.