To sell a product correctly, the following must be carried out: steps of market research. This means collecting, analyzing and interpreting information about your target market, consumers, competition and industry.
It doesn’t matter if your business is small or large. Follow the steps of market research It will be key to becoming a successful entrepreneur and making your business grow according to your goals.
There are many ways to do such an analysis even on a small budget. There are also different techniques to obtain the qualitative and quantitative information you need to succeed with your project.
Before you panic because you don’t know what we are talking about, how it is done or what it is for, in the following guide –simple and very effective– I will answer all your questions.
Here we tell you all the steps to do market research successful. 🚀
What is a market research?
We can define market research as the administrative tool used by companies or businesses to obtain information that can facilitate decision making. Scientific and practical means, such as statistics and data analysis, can be used for collection, and It is very useful for brands that are just starting out or that are looking to expand their product catalog.
Does market research really work?
Market research is a vital element when developing your marketing plan. When done correctly, it can help you make better decisions, establish the price of your product or service, the messages you should use to make your customers fall in love and to launching advertising campaigns aligned to your buyer person.
without an updated You’ll have to rely on your instincts and unreliable information to make decisions that could cost you money, time, or both.
Having up-to-date information is essential to keep up with market trends and differentiate yourself from your competition.
Whether you’re starting a new business, expanding, or developing new products, Here are some benefits of conducting market research:
- Identify new consumers.
- Make it easy to meet your current customers.
- Develop new growth strategies.
- Identifies expansion opportunities.
- Help your business become stronger.
- It shows you what your areas of opportunity are.
- It allows you to stay one step ahead of your competitors.
1. Identify new consumers
For , you must understand who are the ones you already have. In addition, it will be very helpful to have demographic data to plan advertising campaigns, for example.
A market research will allow you to answer questions like, Who uses your product or service? How old are your customers? How much do they spend on your product? What is your socioeconomic level? Which belongs?
2. Make it easy to get to know your existing customers
Although it is an advantage similar to the previous one, to improve your products or services it is important to know the clients you already have. Especially if you want to retain them.
With this point you will answer the questions: Why do they choose your products? What need are your products solving? How do they use your product?
3. Develop new growth strategies
The information that the market research yields will help you make more informed decisions. I mean decide the price of your products, how to distribute them and where, marketing and advertising ideasas well as finding new markets, products or services.
4. Identify expansion opportunities
Get ready to discover and identify areas to expand your business. The information you will receive will be a test for determine if there is room and opportunity for a new product or service or what is the best place to open another store.
5. Help any business become stronger
Always remember that information is power. The data collected in each of the steps for a market research They will help you to have a better perspective, understand your market or target audience to make sure you stand out against the competition.
6. It shows you what your areas of opportunity are
Many times, being so close to your business, you can lose focus on what the real state is. Market research gives you a clear view of the strengths and weaknesses of your business. This analysis is ideal to take advantage, improve and succeed in your business.
7. Allows you to stay one step ahead of your competitors
Being aware of the needs of your market, combined with new ideas and innovative products, can lead to success. Only you will have to know how to apply the knowledge learned and collected during your research to find out what your customers are missing.
This will help you…
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What are the steps for a market research?
There are several methods to carry out market research in the correct way, however, so that you have a good idea of how to do yours and that it can be adapted to your needs and pocket, we present you five steps to marketing research:
- Define the problem or opportunity.
- Develop your market research plan.
- Collect relevant information.
- Analyze the data and report your conclusions.
- Turn your research into actions.
1. Define the problem or opportunity
The most important part of the process. Here you will define a problem or an area of opportunity that you are going to focus on.
To conduct any research and collect valuable data, you must know what you are trying to learn from the research. With this you can determine what you need and how to obtain that information.
💡Examples: how to get more customers, how to launch a new product to a specific demographic, why should I open a business, among others.
2. Develop your market research plan
Once you have determined the problem or goal and all the possible causes around it, It’s time to create the research plan.
You can design your action plan taking into account the following:
- Interview prospects and customers.
- Conduct surveys.
- Do user testing, that is, give a potential customer your new product and ask them to deliver it to you feedback.
- Look for key information in past or competitor market studies.
3. Collect relevant information
Keep in mind that your action plan must provide quantitative (numbers or data) and qualitative (descriptive and observational) data.
Something very important is that these data are valid and impartial. For this part you can also do A/B tests to see if, for example, one discount has more impact than another, or if certain colors attract more attention from customers, etc.
4. Analyze the data and report your conclusions
Now that you’ve gathered all the necessary information, it’s time for the most time-consuming part: analyzing them.
Although a specific piece of information may catch your attention, always remember to look for trends instead of highlighting a single result. We recommend that you write a summary of the investigation, even if it is short and direct to the point. Add whether the patterns showed your hypothesis to be correct or incorrect. Avoid altering the data to prove you’re right.
5. Turn your research into action
Now your research is complete! This step is where you should present your findings and take action based on what you discovered. Here you can develop your marketing strategies and campaigns, always making informed decisions.
Techniques for conducting market research
As I already mentioned, when you do market research you can use the results to create a business and marketing plan or you can simply measure the success of your current plan.
That’s why it’s important to ask the right questions to the right people. Failing to do so could give you results that lead you in the wrong direction. To achieve this, there are two types of research:
- Primary: Collects data from analysis of sales and current practices. It also takes into account the plans of the competitors.
- Secondary: The goal is to analyze data that has already been published. With this type of data, competitors, benchmarks, and target segments can be identified.
These are some techniques for conducting market research successful:
- Interviews (either by phone or face to face).
- surveys (online, by email, by phone or even physically if you have a physical store).
- Questionnaires (in person or online).
- Focus groupswhich are nothing more than a group of clients and/or potential clients who share their opinion on a specific fact.
- online researchwhich will help you determine what information about your competition you can use, past campaigns, their results, etc.
Airbnb: example of successful market research
It was in 2007 that Airbnb completely changed the hospitality industry around the world., subcontracting hosts to receive guests in dozens of cities. Today, the company has more than four million hosts, with few direct competitors.
The company began thinking of a simple business proposal that combined economic benefits for travelers and residents of tourist areas. They started out earning around $1,000 for hosting three people and providing them with breakfast, in addition to creating one of the first unicorns in history.
What problems existed before Airbnb’s market research?
Founders Joe Gebbia and Brian Chesky realized upon moving to San Francisco that when there were big events, hotels in the city filled up, so tourists had to stay in places far from the center.
On the other hand, there were also people with properties in spectacular locations in the city looking for new sources of income.
What were the actions that Airbnb took after the market investigation?
After extensive market research, they decided to put together a business model like no other before. These were some of the actions they took:
- Through an online platform, they decided to connect hosts and tourists.
- They generated a business model that was based on people who could not afford their houses and needed extra money, so they rented them to generate income.
- They charged hosts a commission for each completed booking.
- They added a guest service commission, destined for the maintenance of the website and the use of the platform.
- They offered an opportunity to experience a destination as a local would.
- They developed an easy-to-use app and website that didn’t require a lot of technological knowledge.
Summary
Now that you know the steps for market researchWhat…
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