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What is a market study – keys to knowing and applying this important marketing strategy

One of the keys to achieving success is being able to create a good market study. This concept is highly relevant within marketing as it allows you to gain the maximum benefit from a product or service.

What is a market study?

A market study can be defined as an initiative carried out by companies to study and learn about a specific economic activity. By analyzing and observing the sector in which the company plans to enter, the possibilities of success can be considered since data such as:

  • The number of consumers who would like your product
  • The competition to face
  • Where are potential consumers geographically

As you can see, these and other data will let you know the profile and behavior of your potential customers, the current market situation or the industry you will be entering, possible suppliers, new needs, and especially if your product is revolutionary. And will satisfy a need, or in your case, your competition.

Of course, these data will not give you success by themselves. After preparing a detailed market study, you must continue with a marketing plan that allows you to use everything you have learned and carry out the necessary actions.

Difference between market research and market research

We often tend to confuse market research concepts with market research, and although they have a particular relationship, they are different.

On the one hand, and as we have commented in this article, a market study is in charge of collecting and analyzing the current state of the market that the company wants to enter.

In contrast, market research refers to how you will obtain data for a specific situation in the company and make a practical decision.

For example, when conducting surveys or interviews among consumers to give your product a makeover.

How to conduct a market study

Although each company must create a market study based on the sector, line of business, and characteristics of its business, in general, there are general steps that you can follow to start:

The objective of your market study

Keep in mind what problems you want to solve.

Define your sources of information

You can obtain information from two different types of sources: the primary ones, which are those that you will carry out yourself, such as surveys, interviews, discussion groups, and the secondary ones, which you will base on reports, articles, competitor statistics, that is, external sources.

Data

You will have to decide the tools and techniques that you will use to collect the data and the treatment that you will give them once you have them.

Report

After obtaining all the data and processing it, you must create a report that analyzes what you have found and defines the conclusions.

The importance of market research

If you have a business idea, you want to launch a new product, you thought of a new marketing channel or any other action that requires investment and effort;

The first thing you need to do is a correct market study to minimize the risks as far as possible. This applies even if you establish and have a good command of the environment and your business.

By studying your potential development market for the new project, you will identify relevant factors to implement your action plan or validate if it is profitable. Here we mention some of the most pertinent reasons:

Identify the market potential

By knowing the market well and what you can expect from it, you will be able to determine the products, prices, and promotions with which you will work from the beginning and predict potential business risks and seek solutions before problems arise.

On the other hand, it helps you to allocate resources where they will be most effective.

Understand the competition

Before jumping into the water, you should know how many more develop the economic activity that you want to build with your products or services, their more specific details, as well as the price that your potential consumer would be willing to pay.

From the competition analysis, you will be able to execute better strategies considering the gaps you find in sales, technologies, or other areas of opportunity. In other words, detect an unsatisfied demand so that your proposal has better acceptance.

Design organized marketing actions

The results of a market study determine the focus objectives of a marketing plan, actions, and channels to where they will be made.

Depending on the strategy, you can do an investigation yourself based on market data. Still, if it is a more complex decision and requires a high investment, it is advisable to go to a researcher who can solve the doubts correctly.

Marketing activities like Google AdWords campaigns are systematically executed with market research.

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Advantages of doing a study

In addition to its importance, a market study gives you certain competitive advantages. Some that we can mention are:

  • It facilitates the analysis of the competition and the development of improved strategies that are successful.
  • It helps to understand the market in depth: target and tastes.
  • They know experiences and satisfaction, product and business life cycle, competitors, and what they do.
  • Contributes to the creation of marketing campaigns based on informed decisions.
  • It allows knowing the contributions of the collaborators of a company, as well as their opinions.
  • Strengthen the performance of the company vis-à-vis the client and internally.
  • Promotes worker recognition and encourages communication.

 Also Read: 6 Reasons You Should Consider a Business Development Career

Qualitative market study and quantitative market study

There are several types of market studies, but depending on how the data are obtained.

Two types of methodologies are determined:

Quantitative and Qualitative. Here we briefly summarize each of them:

Qualitative study:

In this research approach, information collects from meetings organized with consumers.

Through one-on-one interviews (live or virtually) to determine their reactions and motivations.

This collection allows interviewees to express themselves freely, even with the interviewer’s guidance.

And also, some techniques used to get answers to questions are role-playing or other psychological methods.

Quantitative Study:

This is another way of investigating that answers the questions: Who? What? How much? How? … It is used to quantify a problem through the generation of numerical data.

The questions apply to a larger sample, though not that large, and you use measurable data to discover patterns. One of the ways to do these surveys is online.

 Also Read: How to maintain a good communication strategy with your stakeholders?

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