Market Research, Why Should Your Company Do It?

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What is market research and how business can use it

Market research has proven to be one of the most fundamental techniques within the companies marketing departments. But it is still very underestimated in some organizations. Since many can not see the return on investment that can have this kind of action. Within this perspective, we decided to better explain what the market research and why it is so important to your business.

What is market research?

Market research is the instrument used by companies to understand the market and its consumers. Generally, this use occurs more often in the design of a new organization or the introduction of new products and services on the market. However, we are living in a time of constant change, so it is increasingly recommended that companies continually monitor the opinion and sentiment of its consumers.

This tool is also extremely useful to follow the opinion of the market over your competitors, their products and innovations that they may be doing.

How to do market research?

Traditionally, market research was done through questionnaires that were to be answered by a number of consumers, segmented depending on the business need. In most cases it was done in person. The researcher visited houses or stop people on the streets to do the questionnaires. In some cases, the survey was also done by telephone.

Within these molds, the market research acquired a label of being an expensive and time-consuming thing, which should be done only by large companies that could afford these costs. However, with the advancement of internet and emergence of interactive platforms, the way to collect and analyze consumer data it has transform.

Today you can do a search with people from different locations and social classes with a much lower cost than it was before. This is possible thanks to the advancement of online research. This also allows a greater consumer engagement with your brand, building a stronger relationship between him and the business.

To do market research, you can develop your own team within your company or hire the services of a specialized consulting firm. The most common is that companies outsource this activity. Because of the lower cost (in most cases) and the experience in know-how do this process, can be a great advantage for your search.

Types of market research

market research

Now that you know what and how to do market research, let’s talk a little bit of research types most used. So you can choose the one that best fits their needs.

Quantitative research – is the most traditional and common type of market research today. In it there are a number of objective questions with defined response options for the participant. The success of this method is very depending on the data analysis. With objective questions, it is easier to classify the information provided by consumers and can analyze the information from a large number of people in a simple way.

Qualitative research – This type of research is also done through questionnaires, but the questions are subjective. That is, the participant can give the answer they want to the question asked. This type of research is more complex because it requires a more careful analysis of the answers given by the participants. Since anything can be placed in the response field. Nowadays, technology has also evolved to facilitate the categorization of these responses. Current systems are already able to discern the content of the answers, facilitating the analysis of a greater number of views in a shorter period of time.

Focus group – In this mode, some people are chosen to participate in the study (usually group of 8 to 10 people) and made some questions about the company or the product that is in focus. So people make comments to the whole group, generating concordant or discordant opinions and even discussions among members. In these groups, there must be a moderator to ask questions and to guide group discussions.

New research techniques – Today there are more advanced techniques for market research, which allow deduce the feelings experienced by the consumer at the time of contact with the product, service or company website. These techniques are based on psychological studies of facial expression and feelings developed in relation to anything we get in contact. Some of these tools are also available for online modes. As Face Reading, which is able to determine the feelings by analyzing the facial muscles when people see certain images on the computer.

Why to do market research?

According to Sebrae data, 1 in 4 companies with less than 2 years on the market closes the doors. And one of the determining factors for mortality of these companies is the lack of knowledge about the market you are entering. To have a business today is very important a good understanding of the company’s stakeholders (mainly public and competition).

The best way to get this knowledge is through market research. With it you can know your customer and know what he thinks about your product on your brand and on its competitor. In addition to having the necessary objective knowledge, you can also meet most tastes and the general routine of your customer and improve your product or service to make it more useful to him. Consequently you will gain a competitive front differential to its competitors.

In addition, with new technologies, market research are increasingly fast, easy and inexpensive. Ensuring optimal results for your business with a great value for money.

So hopefully you will not miss this opportunity to leverage your business!