Find out how the different examples of market research projects are applied according to the situation and objectives of a business.
The everyday business decisions are made by managers who need to have an understanding of the markets they work in. More and more companies are going further afield past their normal territories they operate in and require independent intelligence for this. The return of investment of good market intelligence is huge. In all business decisions, market research has a role to play in generating or saving costs of customer revenue and avoiding bad investment decisions.
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The following are 5 examples of market research projects applied by successful businesses:
1. New product research
The development of a new product is a huge investment of time and money, so market research can help counter any potential problems and make the new venture a success. The specific role that is played by market research is finding out unmet needs and testing what people think of new products or other ways of reaching customers and new pack designs.
The key issues that need to be identified in new product development research are:
Forecasting the usage of products.
The likely customer acceptance or rejection of new or updated products.
The likely threats and barriers that will limit the success of the products.
Competitor products in terms of features, price, market share and distribution.
Optimal price of new products.
The benefits that customers could derive from promotional messages and features of the product.
Consumer reaction to packaging concepts.
Market research helps to grow customer satisfaction and loyalty as customers are at the core of every business, so it’s vital in having an understanding of your customers. The findings from customer satisfaction surveys can be applied to divide the market and find groups of customers with needs and behaviours that are aligned with those products or services.
The main measures of customer satisfaction tend to be:
The overall customer satisfaction score.
The level of satisfaction at different points of the customer journey related to the products or services.
Measuring the level of likelihood to recommend to others (NPS).
Measuring the ease of doing business, which is most common for business to business research.
3. Market assessments
In understanding the structure and market size allows businesses to determine their own share of the market and that of their competitors. Without knowledge of the market size you are not able to see the potential for increasing sales and expanding market share. By measuring the different segments of the market enables businesses to highlight threats and opportunities in the market place.
This is especially true for market assessment research, which is often used to explore opportunities in new markets, where the products have not been sold before. This will enable businesses to make informed decisions regarding the risk levels, the timescale and likelihood of rewards as well as an accurate evaluation of the investment required for the venture to be successful.
4. Communications research
Market research helps to make the most of advertising budgets, where research can highlight the effectiveness of posters, press, TV and online advertising. Advertising concepts and campaigns can be tested as well as supporting the development and monitor the effectiveness of brands over time.
The marketplace can be overcrowded, so the brand can help the business to stand out and be successful in such an environment, where people may choose certain brands when purchasing products or services.
The main reasons of brand research is to:
Competitively position brands.
Measuring the effectiveness of brands.
Identifying perceptions of brands as well as uniqueness and performance.
Ascertaining the effect of brand promotions in gaining customers.
Testing brand promises and positions.
Tracking brands on a regular basis, which could be monthly, quarterly or annually.
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