September 5, 2023
By its definition, market research is the process, action or activity that a company uses to gather information on its consumer base. This information is critical for business operations, as data such as customer behaviour, spending patterns, product preferences, and more can be extracted from the results of market research. This valuable data can then inform business decisions in areas like product development, marketing, strategies, and pricing.
The market research process is different to marketing, which aims to promote and sell products or services to customers. The primary focus of marketing efforts is to create and implement strategies designed to reach and persuade potential customers.
It is recommended that businesses conduct market research before developing and implementing their marketing strategy. Why? Because companies can harness the information from their market research plan and utilise it to create a more robust and effective marketing strategy.
There are various circumstances where it is recommended that a business conducts market research. These include:
As mentioned, market research can provide businesses with a wealth of data, which includes a better understanding of the market, better pricing decisions, more effective marketing campaigns and improved product development. These benefits can translate into better sales (and profit) for a business.
There are several methodologies that a company can apply to conduct market research, including surveys, focus groups and observational studies. While each of these methodologies has advantages and disadvantages, a business should choose a method that suits its research objectives and budgets. Companies can also work with external vendors to conduct their market research endeavours, which can sometimes be more cost-effective.
A panel survey is a piece of market research that gathers data from individuals or respondents who have agreed to participate in a study over time. This can be beneficial in tracking changes in customer preferences or behaviour, mainly if a company is interested in understanding customer loyalty patterns or gathering feedback. However, it is also important to ensure accuracy and reliability by choosing the right panel that is representative of the target market.
Trusting reliable survey panel companies, such as Engagement Lab, will help you generate the required data.
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