Market research is one of the most essential things that every company must take into account before launching new products or services. Ensuring that new products are aligned or respond to what consumers want is key to predicting the success of new launches. However, there are many marketing research factors that directly influence the end result. In this article, we review in detail what they are.
What is market analysis?
Market analysis is specific research that is widely used by companies to study the economic context and sector in which they operate and the behavior of their target audience.
Well-conducted market analysis allows projects to respond effectively to the opportunities or risk factors present in a given market. Doing so is essential to defining a winning business plan and developing effective marketing strategies.
The most common methodology for conducting market analysis involves the integration between quantitative and qualitative approaches. All market research information represents a perfect example of effective collaboration between statistical and analytical tools, as well as sociological and psychological factors.
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Why is market research important for a business?
Market research is an indispensable technique to prevent project failure and to carry out key business activities to achieve significant profits. By conducting market research, a business can collect and record qualitative and quantitative data on different aspects related to any ongoing project.
Detection of new business opportunities
When a market analysis is carried out through an in-depth study of general consumer demand, it helps businesses determine which possible sectors they should invest their resources in.
Creation of the company’s business plan
Analyzing the full potential of the market in which it operates is essential to developing an effective business plan for the company. It is also important for planning the strategies and marketing activities of the company.
Identification of possible risk factors
A detailed investigation that is related to the sector and the current trend of the market in which the company operates is incredibly useful to identify possible risk factors. Knowing the possible economic dangers offers an advantage in planning marketing strategies, as it helps to avoid them.
Forecast of possible future changes
The market analysis allows the company to identify possible future drivers of change to constantly respond positively to the new needs of its target market.
Prices of products and services
It allows the company to optimally determine the prices of its services and products in the market through surveys and interviews. It is also possible to identify the value perceived by consumers of a particular product or service.
Carrying out a market study can also help identify the mistakes made by companies operating in your sector, allowing you to give clues on how to differentiate yourself innovatively from your competitors.
Customer satisfaction evaluation
Market analysis is a very important tool to evaluate the customer’s shopping experience and develop marketing strategies that focus on customer satisfaction.
Optimization of communication strategies
By conducting market research, it is possible to evaluate the effectiveness of commercial projects and seek innovative solutions to constantly optimize communication and marketing strategies.
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8 key factors that greatly influence marketing research success
Conducting marketing research projects allows companies to know how the sector is to determine the success that a product or service that is about to be launched can have. Here are the most important factors to consider for successful marketing research:
1. Assess the sector
Regardless of the sector in which the company operates, it is necessary to assess its status, locally and internationally. On the Internet you can find a lot of useful information to discover the current state of any sector of activity and make the best decision. It is also advisable to collect all kinds of information about the necessary paperwork to undertake. Take note of the taxes you will have to pay to include it in the accounts.
2. Know your target audience
Knowing your target audience thoroughly is key to a good market study. This is because not all products are ideal for everyone, and the more focused the target audience is, the better results will be obtained. It is therefore essential to know well who you want to reach.
To get this information, it is important to analyze who your product or service is intended for. You can even create a buyer persona profile, or more than one, with all the possible characteristics that define it. When you are clear about this profile, you should outline their main personality traits and interests. Surveys are ideal to help define this.
Once the main target audience is identified and defined, your target audience, it is important to connect with individuals from that audience and present your project to them. As much as you know your product or service, you must listen to them as their opinions may be more valuable and accurate than yours.
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3. Analyze the competition
This is one of the most important factors in any market research. It is very important to analyze the competition and find out how they are performing. You must analyze the number of companies that have products or services similar to those you want to offer, as well as the results they are obtaining.
Another important aspect to consider is whether there is a market for your company or if you can offer something better or more innovative. You need to understand what customers appreciate about your competition and what they think could be improved. Assessing whether there is any field within the competition that is not being covered represents a great opportunity for your company to take advantage of.
Today, technology represents an important point in all sectors and has become, over the years, an indispensable factor for conducting market research in the best possible way. The latest generation technology platforms allow you to test various aspects, such as packaging, the creative concept, marketing campaigns and even the simulation of the retail environment, suggesting which elements are most attractive to your target.
Innovative advances have allowed important steps to be taken to make market research more effective, thanks to the rise of artificial intelligence. AI optimizes processes and enables new functionalities such as personalization, evaluation of the customer experience, analysis of the texts and words most associated with the brand, as well as the collection and management of big data. Undeniably, artificial intelligence and machine learning are at the top of the list of key factors that cannot be overlooked in market research.
Since today most market research processes are dominated by technology, it would be a mistake to rule out automation. Thanks to automation, research is based on consolidated research methodologies that ensure maximum efficiency and replicability.
It also allows industry analysts to spend more time interpreting the insights obtained and the implications or conclusions that could be derived from them at the business level. At the same time, the rigor offered by automation helps achieve great results in terms of actionable data, quality and speed.
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In the times we live in, it is very common for consumers to radically change their habits. A new average client “Identikit” profile emerges as a result of this: increasingly connected, demanding and with a very dynamic and fast-paced lifestyle. Brands must modulate their relationship and adapt to the emerging and changing requests of these types of consumers. This highlights the need to have access to real-time data, which is capable of better describing the current conditions of the context and consumers. This important paradigm shift must also correspond to the evolution of research, designed to meet the needs of companies quickly and efficiently. By better researching the needs of their consumers and doing so on a real-time basis, companies will be able to respond to their expectations and constantly improve their business offering.
7. Real perspectives
As mentioned, understanding your target audience is essential to successfully launch certain marketing messages, services or products. Developing a unique concept, designing a packaging that will spark interest and curiosity in the target market and identifying the optimal positioning on the shelf during the design phase are all crucial aspects that will benefit from early investment in market research.
Thanks to real-time and concrete knowledge, it is possible to plan a winning marketing strategy. This knowledge about the market and potential customers avoids having to allocate additional financial resources along the way to reframe the message in order to achieve the established objectives.
8. Determine what type of survey to use
Surveys for conducting market analysis fall into two categories: interviews, characterized by feedback from the interviewer, and questionnaires, which offer responses independently noted by the average consumer.
Depending on the type of survey selected, lists of specific questions can be prepared in advance to share with consumers. One or the other will be more convenient according to the needs of the product or service to be tested, and depending on the size of the sample that is required.
Analytics tools for market research
Time and money should not be wasted on the manual reading of thousands of free-text survey responses by market research analysts. Semeon’s platform is here to simplify your work. With our market research tools, you can:
- Upload open-ended survey responses and call center transcripts into Semeon and get multi-layered insights in a matter of minutes.
- Categorize your feedback data how you need it and apply multiple filters at once to uncover trends, recurring topics of complaint and deliver context to your plan of action.
- Use our complete dashboards to visualize, track progress overtime and provide context to your plan of action.