Market research is more important today than ever because of the increased complexity and cut-throat competition in the marketplace. Customers are exposed to a wider choice of goods and services, aided by cheaper and effective digital marketing platforms. New age purpose driven organisations needs to understand what the consumers want, develop products that those consumers will use, and maintain a competitive advantage over others. Market Research is marketers best tool to ascertain how the target audience will accept a particular product or service. It also helps marketers capture information for customer segmentation and tailor their advertising efforts.
Why should brands consider Market Research?
Market research play a big part in growing business and is often the key to creating products and services that meet the needs of the consumer. Further, it also help organisations solve problems and reduce the risk of making important business decisions. Organisations do get benefitted by
- Understanding the addressable market size and share
- Need gaps in the market and opportunities to serve the potential customer base
- Understanding the market entry barriers, customer feedback, customer loyalty etc.
- Media & advertisement awareness and effectiveness
To summarise, the three key facets or Market Research are Market (size and scope for a particular product or service), Offering (Define and Design a suitable product or service) and Customers (Understanding the target ideal customer)
Types of Market Research methodologies
It is important to choose the right research methodology to convert a systematic observation to an understanding of a particular topic. The research methodology strongly influences the questions to be asked, the various types analyses used and the ultimate goal of the research. So as the first step of the research activity, research methodology (qualitative or quantitative) is usually finalised along with the detailed business objectives.
When brands want the customers to expand on their answers so that they get more insight into their attitudes and behavior, and focuses on getting underneath people’s responses to find out what is driving their decisions, qualitative research methodology is used. It is about exploring this “why” such a behavior. Focus Group Discussions, One on One in-depth interviews are the most common qualitative research methods used.
Quantitative research helps brands answer business-critical questions like the market potential for a particular product or service, brand & product awareness, purchase intention, buying habits, etc. It involves asking people for their opinion in a very structured way so that researchers can use statistical models to interpret the data better. Quantitative market research focuses on the “how many” and/or “how often”? Quantitative market research data collection tools including Face to Face surveys, Telephonic surveys, Online surveys, etc.
Qualitative research is conducted ahead of the quantitative research if the concept under consideration has not previously been researched. This enable the researchers to understand the consumer’s initial reaction and opinion on the new concept without any previous experience bias through a qualitative exploratory phase and further can be validated through a quantitative phase.
Why type of market research should you consider?
Based on the business objective of the organisation, research objectives are drafted. For example, a business objective of increasing customer life time value is fairly translated to research objectives of understanding what makes them purchase more. Some of the common research procedures and methodologies include the following
Customer Research: Generally used to capture needs, usage habits, attitudes, and behaviors of the target customers helping organizations to craft a product or service which will be accepted.
Product Testing: This offers companies a better understanding of how the products or services could meet the customer needs providing crucial insights to both the product development and marketing teams. Product testing research can further identify which product features are most important to the target audience and which products have a better revenue potential.
Satisfaction and Loyalty Analysis: Some of the most common frameworks used in customer satisfaction and loyalty studies are CSAT and NPS (Net Promoter Scores). This type of research is used to identify key drivers of satisfaction and also measure the likelihood of customers to continue using a company’s products and services.
Brand & Media Awareness Research: Brand Awareness research identifies various factors like brand recall, brand recognition, brand identity and brand image among the target audience. While, media awareness deals with various media channels target group normally follow.
Pricing Research: Pricing research is to understand how much the target customers are willing to pay for their products or services. It also can identify what features are most valuable to the audience and what are not. The most common frameworks used in pricing research are conjoint analysis and price sensitivity matrix.
At Consulsat Market Research, we have experts dedicated to delivering the highest quality data, insight, consultation, and support to meet our clients. With our deep expertise in the MENA market, we are positioned to provide you insights and strategies to overcome your business challenges in the region.