Want to discover new business opportunities before your competitors? If so, go with market research to find out consumer behavior, market trends, and competitors’ approaches in the upcoming level. Although the questions occur what it is and how to do it like a pro to thrive before anyone else.
Don’t you worry! If you are a newbie because experts are here to help you out with this situation. We have compiled this comprehensive guide on market research and how you can conduct it like a pro. So, without wasting any precious time let’s start!
What is Market Research?
Market research is a scientific method to analyze and gather your target market trends and consumer behavior, including their needs and preferences. In addition, it helps you find new opportunities to expand, grow, and develop businesses before your competitors.
As a competitor, you will need to anticipate your future and target new areas of the market to locate new potential gaps to fill. In this way, you will also be able to make data-driven smart decisions in the presence of valuable real-time insights.
Market Research Key Statistics
1. The market research industry’s global revenue exceeded $84.3 billion in 2023.
2. Industry has grown up to $3.5 billion in 2023 approximately twice that in 2022.
3. The global research industry revenue has increased up to 358% since 2009.
4. Global research market industry aims to forecast $140 billion in 2024.
5. The USA market leads with number one rank a $48 billion turnover.
6. 35% of market shares generated through quantitative research in 2022.
7. 47% of the market researchers claim that they use AI in market research.
8. Approximately 23% of organizations don’t have a market research strategy.
9. 40.2% of survey responses come from non-mobile devices and 56.6% of responses come from mobile devices globally.
How to Conduct Market Research?
Here are some simple steps that we recommend you to follow while starting marketing research.
1. Determine Your Goals
Determining your expectations from research is far more important before going to start. The reason behind this is that because it aware you of what you are going to research and what you may find.
If you are going to search about your consumer behavior, market trends, or people preferences, setting goals will help you gather the right data. That’s how a determined goal helps you conduct effective market research.
2. Decide Target Audiences
After setting your goals, you need to decide your target audiences on which you are going to test. You need to pinpoint their demographics i.e. age factor, location, income, sex, and their purchasing behaviors.
In this way, you can target the right audience to conduct your research for the right and valuable insights. Ultimately, you will get the results that you are trying for.
3. Choose Research Method
Here comes the most interesting part of implementing research, which is choosing the research method.
The most common types of market research are described here:
- Surveys: You can choose emails, social media, and phone numbers as a medium of yielding results for your surveys. Whether you go for product testing or market position, surveys will be the perfect choice to yield results.
- Interviews: If you are going to target a local market, then you are free to conduct interviews for direct and deep insights. You can reach your target audiences through a one-on-one interview approach whether via phone calls or direct meetings.
- Focus Groups: Focus group research is a technique in which you need to gather a group and introduce your proposal. Now, you need to record their responses both negative and positive. Both responses will be equally beneficial insights for you.
4. Gather and Analyze Data
After choosing the research method regardless of your medium, you need to frame some queries for participants. Remember: don’t use biased language to avoid biased answers and to make sure you have reliable data.
As reliable data gathering was the goal to analyze and uncover your challenges for valuable insights into your target market. Further, you can use some technology-driven tools for data visualization to categorize unclear results.
5. Make Decision
“Whenever you see a successful business, someone once made a courageous decision,” said Peter F. Drucker. Now, you have all you need to make the right decision, such as you have insights into your customers’ behavior and market trends.
For instance, if your audience is concerned about your product quality, then make a decision to improve the quality. In addition, if the market is not prepared for your product yet, then choose another market or just wait for the right time.
6. Visit Market to Adopt Changes
As you know, human psychology is not constant and it changes on an everyday basis. Therefore, you need to visit the marketplace regularly to adapt to new challenges and stay updated on new and upcoming market trends.
What is the Importance of Market Research?
Why market research is important for businesses before making any decision related to their progress. That may cover several aspects as follows:
i) Better Understanding of Consumer Behavior
When you conduct market research, you will have a better understanding of consumer behavior in your target market. According to Statista, 94% of consumers desire to shop again if they receive positive customer service regardless of their age and gender.
During research, you may also encounter such facts that can be life-saving. Therefore, you should go for market research.
ii) Explore Market Trends
Market trends refer to your target market behavior, such as your customer’s preferences and needs above others. Further, market research helps you explore industry trends, whether your business is progressing alongside your competitors or not.
Like, 94% of small businesses have planned to spend more on their digital marketing spending in 2024, which is an increase of 10% in their marketing budget compared to the previous year.
iii) Identify Potential Challenges
In addition, if you do market research, you may encounter some potential challenges in your relevant industry to cope with. For instance, businesses that are surviving in their target marketplace explore potential challenges to cope and thrive in the market.
80% of the companies directly or indirectly implement research market practices to identify potential challenges in their relevant industry.
iv) Know Where To Market Your Business
Although it is the last perk that a business may pocket, but an essential one, that consumes 2-5% of the business’s budget. Yes, we are talking about marketing policies and campaigns to aware vast audiences at the local and international levels.
When a business conducts market research, it will be able to highlight the specific area to target for marketing. In this way, businesses can save more and spend on other projects.
The Closing Note
Well, that’s all about what market research is and how to do it like a pro to thrive. Our experts have prepared the guide together to give the best fix for your problem and help you conduct the research effectively. If you have further queries, then you can ask in the comments. Stay Tuned for More Informative Contents!
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FAQs
Q1. Why is market research important?
Research is important because it assists businesses in understanding their competitors and consumer behavior.
Q2. How to do market research for a startup?
The exact same method for a startup is used to conduct the research for valuable results and insights to explore business opportunities as we have described above.
Q3. What does a market research analyst do?
A market research analyst usually gathers and analyzes consumer and competitors’ insights to help you thrive in the market.
Q4. How is strategic market research used?
Strategic market research helps businesses make decisions about rebranding, entering a new market, and whether to launch a new product.
Q5. How to do market research for a business plan?
Firstly, you need to prepare a list of your goals and decide your target audiences for a business plan. In addition, go for the setting market research to gather insights and analyze to make decisions on whether to start a business or not.
