Market research and its methods
Market research is one of the most important components of further strategy development. It allows you to assess the current business environment and obtain reliable data for creating a UTP. In addition, market research provides an opportunity to effectively plan the budget and optimise marketing spend.
It is carried out before a company enters the market and before the launch of a new product or service. It can be an effective tool in times of crisis when the company needs to find new ways of developing. In-depth market research provides an opportunity to better understand consumer behaviour, especially in the face of change.
The first step is to set goals. These should be specific and time-bound. It is also important to outline metrics against which progress can be measured. The following components should be considered when conducting research:
– the product and its purchase objectives;
– the buyer persona;
– the methods used to purchase the product;
– the points of purchase;
– the size of the market;
– an overview of competitors.
It is also essential to draw up a research plan. This will help to clearly allocate resources to each stage. Most marketers use the following proportions as a guide:
– preparation (design of questionnaires and surveys) – 30% of the time;
– data collection – 30%;
– analysing and reporting – 30%;
– review – 10%.
Focusing on these proportions will help to avoid spreading time and resources too thinly over a single phase. This will ensure a balanced distribution of effort.
Research methods
Traditional methods of market analysis include statistics, research and reporting. These approaches provide an overall picture of the situation in the sector and do not require significant investment. In addition, there are field studies involving interviews, surveys and focus groups. These provide an opportunity to gather information directly from potential customers. This helps to better understand the needs of the target audience.
Another method is consultations with experts and analysts. This approach allows you not only to see a comprehensive picture but also to get practical recommendations.
Each of these methods has its own advantages and disadvantages. For example, open-source data provides access to a wealth of information. At the same time, the information may be out of date, which distorts the objectivity of the analysis.
A combination of several methods is optimal. In addition, you can delegate the research to consulting companies. They provide a detailed analysis, which will save time for the company’s employees. However, in conditions of a limited budget, such services are not always available.
The research can also be conducted in-house. To do this, it is important to define objectives, key indicators and metrics. Tools such as Google Analytics or Similarweb can help. They provide data on traffic, traffic sources and user behaviour on the site.