What is market research?
Market research is the process of actively interviewing potential customers to determine the viability of a new service or product. Market research enables a business to identify its target market and collect perspectives and other data from customers about their desire in a product or service. This type of research can be done in-house, by the company, or by a market research agency that specializes in this field. Surveys, product testing, and focus groups can all be used to accomplish this.
Why is market research conducted?
It is critical for every company preparing to launch a product to uncover the attitudes of target audience on the product's unique characteristics, not only to ensure that the offered product is suitable to the preferences target audience, but also to identify potential desire. The goal of market research is to examine the market for a specific product or service in order to determine how the target audience will react. This can include data collection for market segmentation and product differentiation, which can be used to design advertising campaigns or decide which aspects are most attractive to customers.
How to Do Market Research
1. Create persona
You must first know who your customers are before getting into how they make buying decisions in your business sector. Buyer personas, also known as marketing personas, are fictional, generalized depictions of your ideal clients. They help in the visualization of your target audience and the development of your strategy. The following are some crucial features to include in your buyer persona: age, gender, region, income, education level, job title, etc.
2. Develop research questions
Being prepared is the best approach to ensure that you get the most out of your discussions. Whether it's for a focus group, an online survey, or a phone interview, you should always establish a discussion guide to ensure you cover all of the top-of-mind issues and make the most of your time.
3. Summarize and analyze
When it comes to conducting market research, data is your biggest weapon. The more data you collect and possess, the better your company will be. Your data should be objective, useful, and factual. You should be able to back up your research and make conclusions based on reliable data. Then it's time to examine your findings after you've analyzed the market. Lay out all of your research and categorize it. Include categories for your goal, target market, and competitors.
Source: investopedia.com, corporatefinanceinstitute.com, blog.hubspot.com