The right way to develop a marketing strategy is to start by doing thorough market research. For conducting this research, you must follow the six steps of the market research process.
The market research process helps companies to gain a better understanding of their target market and to make informed decisions that can lead to success in the marketplace.
In this guide, we will discuss the market research process in detail, including the steps involved, and the methods that can be used to gather information, including primary market research and secondary market research.
Also, we will take a look at how Markaz can make the process of market research easier.
Let’s get started!
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Marketing Research Process
A market research process is a systematic approach to gathering and analyzing information to make informed decisions about a product or service.
It helps companies to gain a better understanding of their target market and to make informed decisions that can lead to success in the marketplace.
Fact: The market research industry saw a small gain in revenue in 2018, rising from US $46 billion to US $47 billion. In comparison to 49.6% in 2017 and a total revenue of US $23.77 billion, the top 10 market research firms accounted for more than 50% of the global market research turnover.
The market research process steps are given below:
Step #1: Define The Research Problem
The first step in the research process is to define the problem or question that needs to be answered.
This includes identifying the objectives of the research and the information that is needed to make informed decisions.
Step #2: Develop A Research Plan
Once the research problem has been defined, the next step is to develop a research plan.
This includes deciding on the research methods to be used, the sample size, the target audience (more on demographic segmentation later in the article), and the data collection schedule.
Step #3: Collect Data
After the research plan has been developed, the next step is to collect data.
This can be done through primary research, such as surveys or interviews, or secondary research, such as literature reviews or data analysis.
Step #4: Analyze Data
Once the data has been collected, the next step is to analyze it. This can include cleaning and organizing the data, performing statistical analysis, and identifying patterns and trends.
Step #5: Interpret Results
After the data has been analyzed, the next step is to interpret the results and draw conclusions. This includes identifying the key findings and making recommendations for action.
Step #6: Communicate The Results
The final step in the research process is to communicate the results to the relevant stakeholders.
This includes presenting the findings in a clear and concise manner and providing recommendations for action.
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Demographic segmentation is the process of dividing a market into groups of consumers based on characteristics such as age, gender, income, education, and occupation.
This type of segmentation allows companies to tailor their marketing efforts to specific groups of consumers who are more likely to be interested in their products or services.
Some examples of demographic-based segmentation include:
- Companies can segment their market based on age groups, such as targeting young adults, middle-aged individuals, or seniors.
- Companies can segment their market based on gender, such as targeting men or women specifically.
- Companies can segment their market based on income levels, such as targeting high-income or low-income consumers.
- Companies can segment their market based on education level, such as targeting college-educated or non-college-educated consumers.
- Companies can segment their market based on occupation, such as targeting professionals or blue-collar workers.
- Companies can segment their market based on the size of the family and the stage of life they are in, such as targeting single people, married couples, or families with children.
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Methods Of Market Research
There are several methods of market research and each method has its own strengths and weaknesses.
By using a combination of these methods, companies can gain a comprehensive understanding of their target market and make informed decisions accordingly.
The choice of method will depend on the research question, the type of information needed, and the resources available.
All of the research methods fall under two broad categories of primary research and secondary research.
Here is a deep-dive into the two categories of research:
1. Primary Research:
Primary research is research that is conducted directly by the company or organization that plans to use the information.
This research is designed to gather the information that is specific to the company's needs and objectives.
The main methods of primary market research include:
Surveys can be conducted online, by phone, or in person, and they can be used to gather information about consumer demographics, attitudes, and purchasing behaviors.
Random fact: Survey tools were looked for 132k times on search engines in 2021, which is x17 times more frequently than other product-based alternatives.
2. Focus Groups:
Focus groups are a type of qualitative research that involves bringing a small group of consumers together to discuss a particular product or service.
They can be used to gather information about consumer attitudes, preferences, and perceptions.
Interviews can be conducted in person, by phone, or online, and they can be used to gather information about consumer demographics, attitudes, and purchasing behaviors.
Fun fact: Candidates who don't make eye contact are less likely to be hired—by 65%—than those who do.
Companies can conduct experiments to understand consumer behavior and preferences through conducting A/B testing, etc.
5. Field Research:
This involves observing and interacting with consumers in their natural environment and can include visiting retail stores, trade shows, or public events.
6. Online Research:
Companies can conduct research through the internet, by analyzing online data, tracking social media conversations, and analyzing search engine data.
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2) Secondary Research:
Secondary research is a type of market research that involves gathering information that has already been collected and published by someone else.
This information can come from a variety of sources, including government publications, trade associations, newspapers, and online databases.
That is why it has limitations compared to primary research like outdated data.
However, it can be used for identifying trends, patterns, and relationships that can be used to develop hypotheses for primary research.
The main methods of secondary research include:
1. Literature Reviews:
This type of research reviews existing research studies and articles on a particular topic. It is useful for gaining an understanding of the current state of knowledge in a particular field.
2. Data Analysis:
This type of research involves analyzing existing data from sources such as government statistics, industry reports, and online databases.
Fact: Big data analytics in healthcare might have a market worth $67.82 billion by 2025.
3. Online Research:
This type of research involves searching for information on the internet, such as in online databases, news articles, and company websites.
Both types of research have their own advantages and disadvantages, and companies can use a combination of both to gain a comprehensive understanding of their target market.
Market Research With Markaz
If you’re looking to start reselling with Markaz, you must make market research an essential part of the process.
It can provide valuable insights into customer needs, preferences, and buying habits, which can help you to develop effective marketing strategies and improve the overall customer experience and experience.
The first step you’ll have to take is going to involve a lot of analyzing of the platform on your part.
Here’s how the process works:
1. Surveying Customers:
You can conduct surveys to gather feedback from its customers about their experience using the platform.
This feedback can help you to identify areas for improvement in customer experience by providing a better one yourself.
2. Analyzing Customer Data:
Markaz can help you analyze data from customer transactions on the platform to identify trends and patterns in customer behavior through intelligent dashboards.
This data can provide valuable insights into what products are in demand, what types of customers are buying, and where customers are located.
3. Competitor Analysis:
You can conduct competitor analysis to understand the strengths and weaknesses of you competitors and identify opportunities to differentiate yourself in the market.
4. Focus Groups:
You can use the Facebook groups and Markaz community to conduct focus groups for feedback from customers and sellers about new products or services.
This will help you set a future direction of the platform.
Market research is an ongoing process that involves gathering, analyzing, and interpreting information about a market, product, service, or industry.
It is a critical step that companies must take to gain a better understanding of their target market and to make decisions that can prove beneficial for them.
Also, it is important for companies to keep up with the changing market trends and consumer behavior.
By following the steps of the market research process and using a combination of methods, companies can conduct market analysis effectively.
As a reseller on Markaz, a market research will help you better understand the needs and preferences of your customers and sellers.
This will enable you to make decisions accordingly about product development and marketing strategies.
What is marketing research process with examples?
It is possible to better grasp your target market by conducting market research.
To ascertain consumer wants and preferences, methods like surveys, interviews, focus groups, and observations are employed.
Is market research the first step to success?
Whether a new endeavor is as broad as starting an online store or as focused as entering a new market, marketing research is a crucial first step in making it successful.
It's essential to define your problem in order to keep your study focused and efficient.
What is the best marketing research?
Quantitative research is the best option to gauge opinions.
Qualitative research is the greatest option if you want a thorough grasp of perceptions that reveal conscious, or even unconscious, ways people think about and arrive at conclusions about a subject.