Market research, is the process by which companies collect and analyze important information to make sound decisions within the field of strategic marketing.
The value of this method lies in the way in which the data obtained are used, in this sense, the market study is a tool that allows companies companies determine who are their current and potential customers, so that by knowing their tastes, age, sex, preferences, location, education, stratum social and occupation, you will be able to make your decisions in the formulation of a product that meets your needs and expectations, in addition to establishing a competent price in the market. With which you would be able to increase your sales and maintain customer satisfaction to capture their preference.
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In short, it is a powerful tool that allows the management of the company to obtain information necessary to establish the different policies, plans, objectives and strategies according to their interests.
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In this article you will find:
Objectives of market research
When a company decides to carry out some market research, the analyst is dedicated to collect, process and analyze information linked to the different aspects of marketing, with the aim of developing a strategic plan that allows the launch or positioning of certain products in the market.
This is basically achieved in three fundamental objectives:
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- Economical: Seeks to discover and measure the success or failure they can have when embarking on a new project, whether it is launching a new product or redesigning an existing one.
- Administrative: Seeks to achieve greater development for the organization, for this it is important to carry out proper planning and control and proper use of business resources.
- Social: It pursues the total satisfaction of the clients, so that they position the product or service as number 1 in their preferences, with respect to other similar ones.
Starting from these, it can be said that the market study contributes by allowing the company to improve a series of activities, among these the most important are:
Decision making
Provides all the information necessary for the decision making elementals that call for a meticulous analysis of the vicissitudes.
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In some cases, faced with complex alternative solutions, making decisions without their help is more risky.
Board work
It provides managers with authentic knowledge about the market and how to have the products at the right time, place and price. To have solid foundations when drawing up the action guidelines.
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It encourages the re-evaluation of some planned objectives, based on better criteria. This does not guarantee totally correct actions, but it does minimize the margins of error.
Business profitability
It is an essential part of business growth and profit, since it allows products to be adapted to the realities of the demand, allows the most suitable selection of promotion methods, increases the effectiveness and performance of the sales.
It positively stimulates the general staff of the company, who work with confidence that the objectives will be achieved, since you have been well structured.
Market research benefits
Depending on the applications that this tool has, it can be said that it is useful for the company in the following ways:
- To perform a complete consumer analysis
- To measure the effectiveness of the promotional and advertising campaign.
- To conduct an evaluation of the product.
- It allows to make a study of the sites destined for the commercialization and of the different distribution channels.
- It allows to measure the effectiveness of the different communication media.
- To carry out sociological and public opinion studies.
Benefits of good market research
Based on all the above and taking into account the characteristics that define a good research technique, it is possible to deduce the benefits that a company obtains when developing a study of market.
- It allows discovering the needs and tastes of citizens to obtain a competitive benefit, especially in attracting potential customers.
- It clearly expresses the need to make changes in order to meet the goals and grow as an organization.
- There is more and better information, in an accurate and real way, to make the right decisions that strengthen the growth of the company.
- Facilitates the resolution of future problems.
- You get full knowledge of the size of the market you want to cover when selling a product or service.
- Get more effective in marketing, determining the correct system for the sale, according to market conditions.
- You know how and when customer preferences and buying habits change, so you can adapt to them and stay competitive in the market.
- A feed back is maintained with the clients that allows to know the image that is had before the public, if it is good or bad and if it is necessary to maintain or change it.
- By properly researching the market, the company is undoubtedly taking a step forward, gaining an advantage over the competition.
Steps to do market research
In order to do market research It is vital to carry out the planning of the process, which allows knowing what to do in the different situations that may arise, thus saving time and money.
Similar to scientific and methodical research, market research comprises the following steps:
Definition of the problem.
Define well the research topic to properly formulate the questions, which should be aimed at solving the problem in question.
Definition of the sample.
It is important to base the study on a representative sample, the answers if they come from the wrong people will not have the effect you want and the research will be of no use.
Data collection.
For this, a data collection instrument is developed. Either through the survey, interview, sampling, among others, they must be project-oriented, structured in a clear and understandable way to get as much information as possible.
Analysis of the results.
Each of the previous points is linked, if they are well elaborated, it will be easy to carry out a correct analysis.
The success of the project depends largely on this analysis, since the decisions made will be the right ones.
The report of the results must respond to the problem and be easily understood by the interested parties.
