Market Research Basics
I recently finished a course from SF State extension that was called Market Research Basics.
Now I will admit that this is one of the less interesting aspects of marketing to me, and yet I did get some valuable insights from it that I will share with you.
Creative types can tend to lean away from super analytical methodological practices and approaches to business. But just like the analytical could learn a thing or two from the nonlinear creative, we can learn a thing or two from the analytical.
Conducting market research makes a lot of sense:
- When you are starting a biz or deciding between a few biz ideas
- When deciding on which product to produce or before launching a product
- When you feel like you have ‘lost touch’ with your market or are ‘missing the mark’ and need some input and insights to guide you back into a sweet spot
- When you want to gauge satisfaction or improve a product or service
Some Subsections of Market Research:
CUSTOMER RESEARCH- Who are our target customers anyway? What dot they need and want? What wording do they use to describe their wants and goals?
COMPETITOR RESEARCH– Who are our closest competitors and how do they compare with us? What can we learn from them and do do to clearly distinguish ourselves from them? What is our competitive advantage? (this informs your value and positioning statements and your USP- unique selling proposition)
TREND ANALYSIS– What trends are currently impacting the need/demand of our market? What trends might impact us in the future? Which trends are beneficial to our work and how can we best align ourselves with the existing momentum?
Also PRICING Research, SEGMENTATION Research, CUSTOMER SATISFACTION, and ADVERTISING/MESSAGING Research
As strategic of a thinker as I may be, I had to admit that I hadn’t really thought of either of my businesses in terms of trends. I hadn’t done any real substantial research into my market before starting a business to serve their needs. I just thought they were good ideas and suited me, so I created them. If I had identified and surveyed my market, I could have saved myself a lot of guesswork and accelerated my profits. But it isn’t too late.
MAIN MARKET RESEARCH TOOLS:
SURVEYS- be clear about your objective in conducting the survey, use an online service like survey monkey, use a variety of question formats, and give people an incentive to complete it. (perhaps a coupon or a free download after completing it) ALTERNATIVES include Questionaires and Polls.
FOCUS GROUPS- A roundtable discussion of 6-10 carefully selected people with a facilitator. You can get more in depth information and feedback and thus insights. The role of the moderator/facilitator is very key in quality of results. Costs can be high.
ALTERNATIVES to Focus Groups include Interviews, free workshops with a question and answer portion at the end, and creating a ‘marketing persona’, which is basically a fictional ideal customer that guides all your decisions.
Whichever option you go for, you will need to know WHAT you are trying to find out, then GATHER DATA, then sort, filter, and ORGANIZE DATA and then ANALYZE the Data so that it can be applied to actual improvements.
A good baby step is to create a poll on your blog. Here is one I created in 5 minutes via poll daddy. Please take a second to add your vote into the mix.
To your Success,