Market research. Why should any company wishing to remain competitive opt for market research?

Techniques and Tools in Marketing Research
Market research | Keep up to date / stay competitive Why should any company wishing to remain competitive opt for market research? Market research keeps you up to date What can be investigated during market research projects? The nature of the data taken into account in the analysis What benefits can be gained from market research? Summary

 

Market research | Keep up to date / stay competitive

 

Why should any company wishing to remain competitive opt for market research?

Huge competitiveness in many industries means that even companies with attractive products at low prices are not guaranteed success. The needs of customers change so dynamically that only companies that monitor them systematically are able to respond in time. Above all, they must take care to shape a positive image and brand awareness. It is with the help of a strong brand that it is easiest to sell today. Customers do not have time to think too long about what to buy. He chooses products from well-known brands that he can trust.

 

Market research keeps you up to date

Imagine that you run a business selling memory-boosting dietary supplements. You are satisfied with your sales results, until a new product appears on the market, whose launch was preceded by an intensive marketing campaign. Its premise, however, was no accident. Market research had already been carried out several months before the launch of the advertising spot. This made it possible to identify those needs that the supplements available to date did not meet. This concerned the form of administration, taste and dosage. It also turned out that customers were dissatisfied with the excessively high price and bulky packaging. The manufacturer of the new memory aid decided to address these concerns in its advertising. After only a few months, the product dominated the market, displacing similar supplements.

 

If you had carried out market research beforehand, you would have been able to respond to customer expectations in good time. As a result, you would not have had to worry about competition and a drop in sales as a result of their actions.

 

- Monitoring the market situation and especially observing the activities of your competitors is important for the success of your business. Remember that even global brands that seem to have an established position in the market are constantly looking after marketing. Even if the product itself does not change, its packaging, for example, changes in order to meet the current needs of consumers - explains Dr Monika Jaremków - R&D Director at the Biostat Research and Development Centre.

 

Enter here: Techniques and tools in marketing research

 

What can be investigated during market research projects?

Of course, consumer needs are not the only aspect that can be verified during market research. The question of brand awareness can also be explored. There are several ways of finding out to what extent a particular brand is known among target customers:

  • spontaneous awareness: in this case, the survey participant is asked to identify all the brands that he or she associates with a particular product. The respondent is not shown any brand names from which to choose;
  • assisted awareness: respondents are presented with a list of brands and asked to select all those they are familiar with. For verification purposes, it is useful to include control answers in the cafeteria that refer to brands that are in no way related to the product;
  • TOM (Top of Mind) awareness: defines an indicator that refers to the frequency with which certain brands are indicated as first in line.

 

Market research is broadly divided into quantitative and qualitative. Quantitative measurements include, in particular, surveys of various types. In this case, the aim of the research company is to collect representative data that allow the conclusions of the measurements to be generalised to the full population. Before surveying, it is necessary to define a sample that is a meaningful representation of the defined population. The distribution of the sample may be differentiated by variables such as gender, age, place of residence, education, income, number of people in the household or, in the case of businesses, the size of the entity or the industry within which it operates.

 

We distinguish between the following types of survey research:

  • CATI: telephone surveys conducted using a computer system that allows automatic data coding. This allows us to reduce the total turnaround time by many hours. The software also allows us to avoid logical errors when entering answers given by respondents;
  • CAWI: online surveys that can be completed by survey participants at any time using a computer with Internet access. A login and password are required to access the survey, providing a sense of anonymity;
  • CAPI: quantitative survey interviews conducted in the field. Interviewers collect responses from respondents by entering them using an application on a mobile device. It is also possible to present audio-visual material to survey participants;
  • PAPI: traditional surveying using paper questionnaires. This type of solution is time-consuming due to the need for manual coding. However, it makes it possible to collect questionnaires in a short time from people gathered in a specific place (audience surveys).

 

Qualitative market research, on the other hand, can include in particular individual in-depth interviews (IDIs) and focus group interviews (FGIs). In both cases, the research is supervised by a moderator who steers the conversation in the right direction and asks follow-up questions - according to a pre-prepared scenario. In the case of group interviews, his or her task is also to prevent individuals from dominating the discussion. The course of qualitative research is recorded, allowing transcriptions to be made and qualitative analysis to be carried out on their basis.

 

The nature of the data taken into account in the analysis

As part of the market analysis, it is possible to use not only information obtained through original quantitative or qualitative research, usually with respondents. It is also possible to use data of a secondary nature. This can include, among other things, reports from previously conducted market research, industry publications, statistical reports, textbooks or various types of information databases. The desk research method is used to analyse secondary data.

 

What benefits can be gained from market research?

Any company that decides to conduct market research gains the opportunity to gain an advantage over its competitors. By knowing the expectations and unconscious needs of customers, it is possible to adapt the offer to increase demand for products or services. It is also an invaluable opportunity to optimise advertising expenditure - while maximising the effectiveness of the campaign. With information on the brand image and its positioning in relation to other brands, it is possible to plan improvements. An appropriate pricing flexibility strategy - taking into account the capabilities of your target audience - can also help to increase sales performance. If your market research provides you with detailed information about the social and psychographic characteristics of your customers, you will be able to plan how to communicate with people with this profile.

 

Summary

There are, therefore, many reasons to decide to carry out a market study as soon as possible. Remember that the competition is not sleeping and your inaction could result in a permanent drop in sales and a weakened image. So don't miss the opportunity to grow your business. Make key business decisions based on reliable research and analysis data.

 

Our agency's market research offer can be found here.

 

 

 

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Frequently asked questions

What is market research?
Market research is a comprehensive tool for assessing business opportunities in a market. Market research provides information on demand, supply, competitor activities, preferences and behaviour. The survey will help you stay competitive and up-to-date with market trends.
 
What is the lead time for a market study?

Turnaround time is determined on a case-by-case basis with the client, as it depends on a number of factors such as methodology and the specifics of the market being researched. Market research may take from one week to as long as two months in the case of more complex research.

What is the cost of conducting market research?

The cost of market research is determined individually with the client. It depends on the complexity of the research and the specifics of the target group of respondents. The research technique used in market research is also an important issue influencing the price. 

What are the advantages of conducting market research?

Market research has a number of advantages, including gaining an advantage over competitors, which directly translates into improved financial performance. Researching market trends also allows you to avoid making a wrong investment in a product that is not in demand.

What kind of market research can be carried out?

According to the needs of our clients, we carry out customer research, product research, competition research and segmentation research. Our team of experts will assist you in selecting the right research for you. 

What research techniques are used during market research?

Market research is carried out using both traditional and modern techniques. Survey research can be carried out using a consumer panel with the help of experts, or independently using SurvGo™ survey software. Traditional methods such as desk research, individual in-depth interviews (IDI) and focus group interviews (FGI) are also used.

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