Marketing Research is the systematic collection, analysis, and interpretation of data pertaining to the marketing conditions. The best way to make better decisions and avoid mistakes in your business is through market research and analyses of factual data.
Here are four ways market research can bring value to your business:
1. Identifying Customer Desires and Wants
Market research allows you to identify your customers, identify their price range, and identify how you are able to meet their needs and expectations. By analyzing data within your industry, you can learn information on your target markets such as age, gender, economic status, etc. which may influence the products they use and their likes and dislikes. I currently work in the skincare industry, anti-aging luxury skincare in particular. Therefore, my companies target market is a more mature demographic (typically 45 and older), most often female and of a more affluent socioeconomic status. Based on the data received from our customer profiles on our spas and website we are able to gather this data to help determine how we market to our target.
2. Understanding the Market
Market research allows you to identify key metrics such as market growth and size through analyzing market research reports on your industry. This allows you to see the level of competition you have within your industry and analyze the probability of your product or service being successful based on the saturation of the market. For example, my company’s mantra is Led by Science, Defined by Nature, our main anti-aging ingredient, Padina Pavonica, is patented only for use in our products which in itself makes out product unique, rare and appear more luxurious. In the skincare industry, the market is saturated, however, some brands are able to find and market a niche or aspects that set them apart from the competition by conducting market research.
3. Product Development
Utilizing the information in the previous steps such as the data gathered from identifying customers and their needs and wants and understanding the market and your competitors can allow you to determine the products that will appeal to your customers. You can utilize the strengths and weaknesses of your competitors to determine what you should and should not do in product development and you can analyze your markets in terms of demographic and geographic to see what aspects of your product development can be used as a marketing tool. For example, a growing trend is clean beauty. In my industry, the focus on vegan, organic, cruelty-free products are at an all-time high. Upcoming skincare companies now are focusing on the use of natural ingredients well known to customers in order to sell their products such as charcoal, clay, turmeric, and apple cider vinegar.
4. Market Your Business
Marketing Research equips you with the information you need to understand your customers, understand the market and competitors, and understand what people are going crazy for. With this information, you are better able to gear your marketing towards your intended target. This information can have an effect on the wording, imagery, and tone of the marketing content you put out and can help you understand what marketing and advertising strategies are most likely to catch your audience’s attention. Using my company as an example, we focus on anti-aging luxury skincare, our demographic is more mature, mostly retired, mostly affluent, and mostly female. Based on this our channels of advertising may be vastly different from a brand that is geared towards teens. It may not make sense for my company to have an app or have a huge social media presence because that isn’t where we would best reach our target. Instead, we may send emails, we may send mailers and catalogs and we may engage in more traditional forms of marketing because we understand our target, their wants and needs, and how to reach them.
“The aim of marketing is to know and understand the customer so well, the product or service sells itself.” – Peter Drucker