Bridging the gap with market research

The Importance of Market Research for Small Businesses

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To Boss Your Market, You’ve Got to Know It

The importance of market research for businesses starting out or moving up, including small businesses is down to the fact that the data that research provides, is at the heart of much of what you decide to do with your brand. How you pitch your offering, your messaging, how you articulate your purpose, the methods you use to project certain perceptions, these all depend on knowing our market and the prospects who people it.

Setting off on a brand development adventure to ascertain your positioning without market research is analogous to setting off on travels through the Sahara Desert without a compass. You might try it but you really should not.
You might understand the importance of developing a brand and also for having a brand strategy to steer your business through choppy waters but it is equally important to know that it is complex and in-depth work that should have a basis in facts and numbers and not just supposition and wishful thinking. Empirical evidence is not only good for confidence but it actually gives the power for great decision making.

 

compass capabilities of market research

What is Market Research?

Market research is a tool, a knowledge base, a marketing, planning and brand development stock in trade that enriches the process of brand definition and sharpens the resulting brand’s effectiveness and the desirability and efficacy of the offerings your business provides. You find and collect information, insights and patterns that expose the potential desires and unmet needs of customers as well as their attitudes and habits. If you remember that businesses like Google and Facebook trade in data about you and me, then you must realise the value of data like that.

Regular market research helps your business grow and continue to grow. It helps your business take stock of shifts and changes in the market place and identify trends and threats in the operating environment. It’s a real risk not to do it because it helps you continue to understand and refine your knowledge about your target market and improve your ability to speak their ‘language’. It means that you can pinpoint problems and possible opportunities and uncover competitors operating in gaps you were not aware of.

 

What should be the scope and objectives of your market research?

Market Research is famously divided into primary and secondary research types.

Clarity on what it is you want to know about the market at the stage of the business life cycle you are inhabiting determines this, as well as the type and mix of techniques you might employ.

Primary market research focuses on collecting unique data about a business and target customers to use to enhance your offerings and relies on getting as close to the customer or prospective customer feedback or behavioural data from their interactions and transactions with you, like how effective sales is, how effective your sales channels are etc.

Secondary market research is conducted at a remove from the customer and their direct behaviours, feedback and reports, being derived from readily available and compiled from a range of sources.

With primary research, you focus on data and metrics for:

Sales
Competitor and industry research
Competitor Services
Communication channels
Interviews
Focus Groups

You focus on the following with secondary research:

Published company reports data
Industry and sector-specific data
Government data and sector reports
Third-party surveys and studies
News and social media reports, reviews and the general themes shared in forums etc.

Things to Remember

It’s important to ascertain when you start a market research process what data is required, why and by whom, whether similar research has been performed, especially recently and try to mine it or adapt it to your requirements. This may mean that you do not need to carry out your own primary research but if it does, it is instructive to define how and who with. A hypothesis or general idea about the broad nature of the target market is also needed.

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10 Reasons You Must Have Market Research

Start your business or relaunch it on a stronger footing

For brand development and to underpin a brand strategy

Compete with established competitors who are confident and slick because they’ve got market research insights you don’t

To scale

To differentiate and diversity

Learn about the customers you want, the customers you’ve got and the potential customers you’re missing – extend your line or offerings

Know and undermine your competitors by identifying opportunities in performance, pricing and promotion

Make informed decisions

Test new offerings and markets

To speak to your prospects in a language they understand and build brand love and loyalty now and forevermore, Amen.

 

Bridge the Knowledge Gap with Market Research

Businesses that engage in regular market research grow faster and are more successful than competitors who do not. This is why market research is not just for new businesses and is especially precious for small businesses and professional services businesses that face intense competition. When it comes to defining a customer experience that can give you an upper hand in retained USPs, market research is critical for the data needed to design it,[/vc_column_text][/vc_column][/vc_row]