Market research gives you an idea on what works and what not before you start your venture.
You will get to know the needs and requirements of your customer before delivering your product/services.
There should always be a demand in the market to supply your product/services.
It’s as simple as that.
Types of Market Research
Market research gives you a direction to travel and how fast you can reach your business goal.
Market research suggest who and where your customers are.
It will also tell you when they are most likely and willing to purchase your products or use your services.
Without a proper market research your competitors will take an advantage over you.
There are two kinds of market research:
- Primary Market Research
- Secondary Market Research
Primary Market Research
You can start primary market research by analyzing the existing data such as sales, customer database, and current marketing practices.
- Interviews (face to face or through phone call)
- Direct feedback from the customers
- Competitor Analysis [This we are going to cover in the next section of the course]
Sample Questions to ask:
- What makes them to buy your product/services?
- What do they like or dislike about your product/services?
- Any suggestions for improvement?
- Appropriate Price?
Secondary Market Research
Secondary market research can be done through already published data such as competitor’s business patterns, target segments, and demographics.
This can be accomplished through data collection.
There are two ways to collect the data.
- Quantitative approach
- Qualitative approach
To perform quantitative market research, you will have to have enough data to come to conclusion through mathematical analysis.
If you are making use of Google Analytics on your website, this could help you with Quantitative analysis.
This could help you with visitor time spent on the website, where are they coming from, what actions they are taking on your website, and how often the visitors are coming to your website etc.
To perform qualitative market research, you have to first finish off the quantitative analysis.
With that data you can refine it and come to conclusion which segment or demographics is working for your business.
So that you could start focusing on that area more.
Mistakes to avoid during Market Research
- Avoid asking only the people you know, you need to inquire with others too.
This is to avoid the biased opinions from the known ones.
- Do not rely upon the website data alone, you need to get to know about the offline market as well.
Eventually they are the one who come online. You need to take the opinions from them too.
- Using the secondary research data such as other people data to come to conclusion.
You need to test the strategies on your business and have enough data to come to conclusion on which is working and which is not in online platforms.
FREE Market Research Tools
PAID Market Research Tools
UNDERSTANDING BUYER JOURNEY
Before you begin learning the techniques and acquire skills, you need to first understand the usual path every buyer will follow before buying your product or using your services.
The 3 stages every internet user will go through before he become your client.
1) AWARENESS STAGE
Any user if he wanted to buy something online, first he will do is research on product.
How does he do, he goes to the search engine and type in the seed keyword.
Then he will be able to find list of brands selling the products.
He will be in stage where he usually try to get more information about the products he wish to buy online.
Key points to consider in awareness stage:
- Need of the product he wanted to buy from your company or brand.
- Research the product details.
- Prioritize the features and criteria.
2) CONSIDERATION STAGE
In the consideration stage, he will again do research on the brands he had shortlisted in the first stage.
He will start analyzing and compare the features and the differences in the product that multiple brands he chose offers.
Key points to consider in consideration stage:
- Research on multiple brands before deciding on one brand.
- Compare different brands to choose the best suitable one.
- Justify their expenditure on the product they buy from your brand.
3) DECISION STAGE
At this final decision stage they buy your product, but before that they still do some math be it calculating the costs, preparations, implementations, and customer support.
Key points to consider in consideration stage:
- Select the final brand they choose to buy the product from.
- Purchase the product they had decided to buy from you.
- They become promoters of your product if everything goes well from your marketing plan. They end up giving positive reviews on the product for your brand. They become loyal and happy customers.
One of the most important thing you need to know is Sales Funnel.
This sums up everything you need to know about sales and marketing in general.
If you get a good grip over this aspect, you are half way through the process.
You just have to work on the skills.
Let’s dive into the SKILL parts after finishing off the competitor analysis!
If you have any suggestions on the above topics or have some experience and knowledge to share on the above topics.
Kindly do share with us, as most of the other people do get help from your valuable suggestions.
Your comments are highly valued and appreciated. Thanks!
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~ Vikram C L