As the amount of data that companies produce multiplies at a time when regulations regarding the protection of third party data become stricter, organisations must find new methods for obtaining information that will allow them to make informed and conscious decisions.
Market research is positioning itself as a key strategy for companies. Market research can be an alternative or an efficient complement to enhance a company's data analysis and knowledge gathering strategy.
What is market research?
Market research is a process that involves the collection and analysis of relevant information to better understand the market in which a company is operating. This information is used to make informed decisions on how to position products and services, as well as to gather consumer needs and market trends.
At Kale we are experts in all types of market research and have developed a unique guide to help our clients understand what market research is and how to conduct it.
The importance of market research
Market research is essential to the success of any business as it provides valuable information about the market, customers and competition.
Through market research, a company can:
- Discover customer needs and desires: Market research helps companies understand the needs and wants of their customers, enabling them to develop products and services that meet those needs. By understanding customer needs, companies can improve the customer experience and increase customer loyalty.
- Identify market trends: Market research allows companies to identify and adapt to market trends. By understanding market trends, companies can make informed decisions about the production and marketing of products and services.
- Assess the competition: Market research allows companies to assess their competitors and better understand their strengths and weaknesses. By understanding the competition, companies can develop effective strategies to compete in the marketplace.
Ultimately, the main objective of any type of market research is to help companies make better decisions.
- According to a Deloitte report, 74% of companies say that market research helps them make informed decisions about marketing intelligence strategies, identify new market opportunities, understand market trends and assess competition.
Informed decisions mean less risk. Market research helps companies identify potential problems and understand how customers might respond to a new strategy or product.
- According to a PwC study, 90% of companies that use market research report that it helps them reduce risk.
Types of market research
There are several types of market research that a company can use to obtain information about the market, customers and competitors.
- Primary market research: Primary market research involves the collection of new and original data directly from customers or the market. This can be achieved through surveys, interviews, focus groups or observation. Primary market research provides specific and detailed information about customers and the market, but can be costly and time-consuming.
- Secondary market research: Secondary market research involves the use of existing data, such as research reports, government statistics, trade publications and market databases. Secondary market research is faster and less costly than primary market research, but the information may be less specific and detailed.
- Qualitative market research: Qualitative market research involves the collection of non-numerical data, such as opinions and perceptions, through surveys, interviews and focus groups. Qualitative market research is used to better understand customer needs, motivations and behaviours
- Quantitative market research: Quantitative market research involves the collection of numerical data, such as statistics and measurements, through surveys, questionnaires and statistical analysis. Quantitative market research is used to measure market size, customer demand and market trends.
How to conduct market research? Essential steps
It is important to keep in mind that the characteristics and process of a market research will depend on the specific needs of each company and the information to be obtained or marketing insights to be discovered.
Ultimately, market research varies according to the objectives and scope of the research.
However, the essential steps of any market research are:
1. Define the research objectives: Before starting the research, it is important to define the research objectives and what you hope to achieve. This includes identifying the key questions to be answered and the specific problems to be addressed.
2. Designing the research: Once the research objectives have been defined, the research must be designed to obtain the necessary information. This includes determining the type of research to be used, the size and selection of the sample and the method of data collection.
3. Collect data: The next step is to collect data. This may include surveys, interviews, focus groups, observation methods, and secondary data analysis, among other methodologies. It is important to ensure that the data is collected objectively and that the sample adequately represents the market.
4. Analyse the data: Once data have been collected, they should be analysed for meaningful information. This may include the use of statistical software to analyse quantitative data and coding and thematic analysis for qualitative data.
5. Present the results: Finally, the results of the research should be presented in a clear and concise manner so that they are easily understandable. This may include the creation of graphs and tables to summarise the data and a detailed report that provides recommendations and conclusions based on the findings.
Want a complete guide on how to conduct market research? Download our free guide to market research below!
Conclusion
Market research is essential for any company that wants to better understand the market it is in and make informed decisions about products, services and marketing strategies. Market research provides valuable information about customer needs and wants, market trends and competition. There are several types of market research, including primary, secondary, qualitative and quantitative market research. The market research process involves defining the research objectives, designing the research, collecting data, analysing the data and presenting the results. By conducting market research effectively, a company can improve its ability to compete in the marketplace and meet the needs of its customers.
