Are you a business owner or hoping to launch a startup? Do you know why market research is important in 2019? This blog post is a guide to helping you learn more about market research.
What is market research?
Market research entails gathering data about a particular group, to then analyze how you can better reach this target market.
Why is market research important?
At Red Idea we often emphasise the importance of planning. We even have a notebook on it! Market research is a key feature of your business plan. It helps you to better understand the needs of the group of people you are trying to reach. This, in turn, helps you make informed decisions about your business strategies. It can also help you keep track of your competitors and what they are doing. This will help you plan and look out for what you need to do to stand out to your market.
Researching your target market also helps you understand industry shifts, changing consumer needs, alongside other consumer behaviours. These insights can prove extremely useful in helping to make your business run more effectively.
Types of Market research:
Primary: This is the data that you collect first-hand. This could be through surveys, interviews etc.
Secondary: This is data already available to the public. For example, shared in magazines, government reports and more.
Within primary or secondary research there are two further research studies:
Exploratory – This consists of gathering open-ended data from a large group of people. The aim is to gather perceptions of what a particular group of people think of a specific issue. Consequently, you can understand your market and work on solving the issue.
Specific- Specific questions can be asked once you understand broader market issues. This approach is often used by market firms to refine a planned new product or for feedback for example.
Types of Online Market Research:
The traditional pen and paper path to research has declined since the popularity of the internet. There are now several online research methods. It is also more cost-effective. Here are some online research methods and tools to consider when carrying out market research:
Social Media – There are embedded features, such as polls and Q&A’s available on popular platforms such as Instagram, Twitter and Facebook. These can be easily used to engage with your followers and gather market research.
Online Forms– Typeform is a site that allows you to create online forms for free and easily distribute it to your market to fill out.
Online interview– This gives you all the immediate benefits of being able to ask questions in real-time. And on top of this, you won’t have to worry about additional costs such as transportation to meet in person. You can do this for individual people or even focus groups. Zoom is a popular tool for video conferences.
Online Qualitative research – Blogs, mobile diaries and online communities are also useful. They can provide insight into what people are thinking and discussing. With the flexible nature of the internet, people tend to openly share their mind through these platforms.
Online Text Analysis – This is a collection of online research technique which s a collection of several online research examples. This method allows you, as the researcher, can explain penned, verbal or graphic communication formats, including categories such as web pages, sentences, paragraphs, documents and more.
Social Network Analysis – This involves analysing behaviours on social media networks. This allows you to map and measure flows and relationships between people, URLs, computers using graph theory and more.
Choosing the type of method you will use for your market research depends on your target market. As mentioned, there are several online methods that could replace in-person research with cost-effective benefits. We hope you hope this blog post helped you understand the importance of market research and the different methods it has.
Check out out this blog post for more tips on business planning.