Last Updated on February 23, 2023 by Rashid Hassan
In a company, before facing the marketing process, it is necessary to first understand how the market works. In this way, it will be possible to get the maximum benefit and not overspend resources. But what do we mean when we talk about “understanding how the market works”? Well, basically, it has to do with everything related to the analysis of the environment and the actions carried out by consumers.
Through this process, it will be possible, among other things, to know what the current trends are, what interests customers have and how the competition is currently working. These are critically needed factors to be able to stay competitive and have a better chance of success.
What is market research
Market research is used to better understand consumer purchasing intentions and find out what current trends are among them. Likewise, it also works as a tool to know how to act in a specific situation. Through the collection of data, it is possible to carry out an analysis that will allow us to generate a diagnosis of the situation and know what decisions to make at a certain moment.
Market research itself is carried out to try to ensure the stability of a company and meet the needs of customers. In addition, through this process it is possible to obtain great benefits, not only in terms of consumers, but also in the use of resources.
This type of research can become essential when managing a company, even becoming a kind of guide.
How to do market research?
This process has a series of steps that must be considered in order to obtain successful results. These are: first, the definition of the problem and its development. Here, it is necessary to consider aspects such as the purpose of the study, the background that exists around it, the information required and the way in which it will be used to make decisions. Secondly, it will address the formulation of the research design, to then move on to the so-called field work. From here, what we know as data collection will take place.
Regarding this last point, it is important to note that there are various ways of obtaining data and not all of them are the same. The first one we will address is qualitative marketing research. This focuses on the recording of data with semi-structured questions that allow respondents to have freedom in their answers and can, in turn, expose feelings and thoughts in a broad way. In addition, it is also widely used when what is sought is to be able to deepen the study of a topic.
Qualitative data collection tools
- Focus Group: consists of bringing together several people simultaneously to be able to interview them at the same time. This can only be done through a moderator, who will be in charge of controlling the pace of the interviews and choosing the questions.
- Interviews: can be done through semi-structured questions so that the interviewee in question can provide valuable information or answers in terms of content. Furthermore, these are much more developed questions due to their qualitative nature.
- Daily studies: it consists of being able to keep a daily record of consumer experiences. In this way, it is possible to identify patterns and trends, which, in turn, will allow you to correct errors or emphasize positive aspects.
Once the types of qualitative research have been defined, we will now address the quantitative methods. But what do we refer to with this term? Basically, the data collection that takes place in quantitative research is much more numerical and statistical in nature.
Quantitative data collection tools
- Net Promoter Score: consists of a very short questionnaire, which focuses on customer satisfaction with respect to a certain product or service.
- Surveys: it is the most common method. It is a series of previously defined questions and answers. Respondents must select one or several of them according to their preferences.
- Mystery Shopper: This is another tool that is very similar to the questionnaire, since it is carried out using previously defined questions and short answers. In this way, it is possible to know how the customer’s process was when making a purchase. For example: if they offered you discounts, how was the attention, in what condition was the place, etc.
Benefits of correct market research
Through this process, it is possible to obtain a series of unmatched advantages. These have to do with obtaining information, which is used to solve problems and, in addition, to be able to make the right decisions tomorrow. In addition, among other things, it will also allow you to know the real size of the market in which the company’s actions are going to be developed, in addition to determining a correct sales system according to the current needs of consumers.
Another benefit that this process provides is closely linked to obtaining results. In what sense? Through this information it is also possible to know which is the best path to follow in terms of sales strategy. This is because it will show us what the current trends are and what products or services are most in demand today.
By researching the market, you can be one step ahead of your competitors and better understand the interests of your customers.