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Every piece of marketing research has a specific goal and solves a particular business problem. Without a clear research goal, you may end up with useless information and waste resources and time. In this article, we will look at the main objectives of marketing research and describe which marketing and business tasks such studies can solve.
1. Characterise the market
MARKET DESCRIPTION:
– Key players and their positioning– Market share of key players– Size of main market segments– Market volume– Market growth rate– Market drivers
A “market description” study aims to determine the size (capacity) and growth rate of the market and to assess its main drivers; to identify key market players and describe their positioning and their share of the industry; and to identify the leading market segments and their share of the total market volume. Information obtained from such a study helps the company form a general understanding of the industry’s importance and prospects, identify key competitors and assess the potential for business growth.
2. Perform market segmentation
MARKET SEGMENTATION:
– Segment identification– Consumption features and preferences of segments– Size and growth rate of segments– Study of the company’s consumers and non-consumers– Analysis of the reasons for buying and rejecting the product
The purpose of market segmentation research is to identify all significant consumer segments in the industry; to identify each segment’s specific preferences, behavioural habits and product requirements; and to assess the size and growth rate of the segments. Market segmentation studies often examine the company’s consumers and non-consumers in detail, as well as the reasons why customers abandon the company.
The information obtained from such research helps the company find free, low-competition market niches, develop product positioning for specific groups of segments and shape its product range correctly.
3. Evaluate purchase involvement
PURCHASE ENGAGEMENT:
– Awareness of the market– Awareness of the product– Intention to buy– Trial experience– Purchase– Repeat purchase
Studies of the buying process are often conducted in “waves” at regular intervals and help not only to understand the consumer but also to evaluate the effectiveness of the marketing programmes being carried out. The purpose of such research is to determine the buyer’s involvement in the purchase. Engagement is measured by six indicators: awareness of the market — awareness of the company’s product — intention to buy the product — a free trial of the product — a purchase — a repeat purchase.If the indicators show a positive trend over time, the company’s marketing is working effectively.
4. Understand the reasons for the purchase
PURCHASE REASONS ANALYSIS:
– When do people think about the product?– When do they buy the product?– What criteria do they use to choose?– What encourages them to buy or change their choice?– Sources of loyalty to the product– Reasons for not buying
This analysis helps the company find the right levers of influence on the consumer and stimulate interest in the product and purchases. In the course of such research, it is essential to determine the main reasons why buyers think about a product and actually make a purchase, the criteria for choosing goods on the market, sources of loyalty and reasons for rejecting the product.
5. Assess attitudes, expectations and customer loyalty
ATTITUDE, EXPECTATION, LOYALTY:
– Compliance with expected parameters– Established product image– Satisfaction with the product– Limits of loyalty to the product
This type of marketing research aims to assess the level of customer satisfaction with a particular product or company. The study examines how well the product meets customer expectations on its main characteristics and what image of the product has formed as a result of customers’ interaction with it. As a result, the company can assess the current level of satisfaction, understand the product’s key weaknesses (those that reduce satisfaction) and develop corrective measures to improve its advertising, product and service.
6. Test the concept and need for a new product
NEW PRODUCT CONCEPT:
– Attractiveness of the concept– Relevance of the concept– Probability of purchase– Trust and distrust in the concepts– Forecast of the efficiency and profitability of each concept
The purpose of new product research can be either an initial assessment of the viability of product concepts or a detailed analysis of various alternatives for the finished product. In the first case, the company can choose, from several possible directions for a new product, the one most in demand on the market; in the second, it can compare product prototypes in detail in terms of attractiveness, profitability and level of interest.
7. Evaluate consumer lifestyle and habits
LIFESTYLE AND USAGE HABITS:
– How and when is the product purchased?– How often is the product bought?– How does the consumer interact with the product?– Buyer’s lifestyle– Buyer’s values and life goals
The purpose of consumer research may be to study the lifestyle of the target audience and its product usage habits (how, where and when a product is bought), and to build a map of how the consumer interacts with the company’s product. Companies can apply the results of such research to improve the product, release new products, and develop design and advertising that fit into the world of the target audience.
8. Assess brand strength
BRAND STRENGTH:
– Intangible benefits– Brand awareness– Brand quality– Level of brand commitment– Brand associations
Marketing research into brand strength helps to determine the key intangible benefits that a particular brand provides to buyers and for which they are willing to pay a higher price. Such research also assesses brand awareness, brand quality, established associations and the level of commitment to the company’s product. The results are used to develop a product marketing and communication strategy.
9. Evaluate the effectiveness of advertising communications
ADVERTISING EFFECTIVENESS:
– Message memorability– Clarity and relevance of the message– Desire to buy after seeing the message– Images created by the advertising– Advertising reach– Advertising wear-out
Recently, research aimed at determining the effectiveness of a brand’s advertising message has become king. Such studies make it possible to assess the wear-out of a commercial, the quality of the advertising message (memorability, clarity, relevance, etc.) and the images that advertising forms in the minds of the target audience.
10. Assess the quality of distribution and product sales
DISTRIBUTION QUALITY:
– Level of product distribution– Importance of sales channels– Completeness of the product line– Product shortages– Quality of merchandising
Some marketing research analyses actual market sales and the quality of product sales in the industry. The purpose of such studies is to determine the level of product distribution on the market, assess the importance of various sales channels, identify product shortages (lack of availability) and evaluate the quality of merchandising at points of sale. The results help to find weaknesses in product sales and adjust the company’s distribution and trade policies.
11. Set an effective price
PRICING:
– Level of interest in the product– Elasticity of demand– Price-based market segmentation– Perceived value of the product– Optimal product price– Limits for price increases
The purpose of pricing research is to assess the level of demand for a product and its elasticity, carry out price-based market segmentation, determine the product’s perceived value and find the optimal selling price. Information obtained from such research helps the company manage product pricing effectively and increase business profitability. These studies answer the questions: is the product price optimal? Is it overpriced or underpriced? How far can the price be raised and remain acceptable to the target audience?
12. Assess customer service
For many companies today, it is becoming crucial to assess the quality of service (delivery, order taking, communication), which is one of the critical factors in building loyalty to the company’s products. Such studies assess overall satisfaction with the service and the quality of communication with the company’s staff, and investigate the negative and positive aspects of the service.
IMPORTANT:
Marketing research is carried out to obtain the reliable data needed to make strategic decisions. Without a clear research goal, you may end up with useless information and waste resources and time.
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