If you have a business, you have questions. Is my product or service attractive, or does it need to change? Is the price, right? Do customers know its benefits or are even aware that my brands exist? Who would be most interested in my product? What content and activities does my target market enjoy? All these questions require research.
Dan Zarella said, “Marketing without data is like driving with your eyes closed.” Although most businesses start using gut decisions, all of them reach a point of impasse where you truly need to open your eyes to make the best possible business decision. So, what are some of the problems that you can solve with market research
Understanding your target market and product
You might have an excellent product but if you are targeting the wrong market you will not get any sales if you target everybody your cost will go through the roof. Take for example a company that is targeting small shops and large superstores. Small shops are easier to convince to get your product, large stores will take more time, effort, and relationships. Therefore, we have a question of current profits vs long term profit potential. Market research will help you decide on a target and improve your sales pitch, by identifying pain points in both types of customers and how your products satisfy their needs. Using that information, you can better make your plans to go to market.
Another problem is to get your product in the mind of the consumers, do they really know you. Or in fact, do they confuse you with your competitors. Measuring your brand awareness and your competitors can let you know where your brand stands in the market. Just imagine this problem: You make a great ad, but customers buy your competitors because they recognize your brand and not yours. Detecting these problems with market research will help you adapt your communications to your needs.
What your customers like? Your customer persona
Finally, understanding your customers and their needs will let you know what channels to target them. If your ideal customer likes watching sports and going to the movies, then you could strategically place publicity in a sports or movie magazine. On the other hand, placing your ads on an art magazine would be a waste of money because it’s not content that your target market consumes. Pro tip: Build a customer persona and imagine a day in the life of your customer.
I hope this article allows you to reflect on the importance of market research and having information to make decisions for your business. Market research can be expensive but making the wrong business decision can even more. Want to learn more about market research? Leave a comment in the section below with any question you might have!