Showing posts with label Market Research. Show all posts
Showing posts with label Market Research. Show all posts

Sunday, October 13, 2013

Importance of Research Study – Four Reasons Why We Need a Research Work

Reasearch Design Methods Have you ever thought how a new-best-seller product e.g. Iphone be made ? How did the producers get an idea to create product such Iphone? How did they choose the way to market the product?

Those questions above perhaps ever emerge in our mind, especially for those who try to market a new product and want to get success. In modern marketing concept, consumers are the main central of business where product to be marketed must meet the consumers’ wants. However, it is not an easy job since consumers are getting more complex today. They will buy only products those meet their expectation. Therefore, producers have no option other than producing products as consumers wants, even those are sometimes seem impossible.

Understanding and creating marketable products, as I said before, is not an easy job. In this tight competition producers even have to take years to create the perfect product. Through market research they attempt to collect a complete information about their target consumers, how is their behavior, their habit, all their expectation about particular products, etc. Although in this article, the example given is on the marketing case, but you must remember that research in real- business is also required by other departments such as the departments of finance, human resources, operations, and so on.

Before we talk more about the importance of research, lets recall again our memories about definition of research. Research basically defined as a set of activities to figure out any important information about particular material that will be used to support an idea. For example, if you intend to find out how consumer response to the product that you are selling then you can conduct a market test or research on consumer satisfaction. Another case if you want to find out if the new shares you buy will provide a positive benefit in the future then you can do research on the profitability of the company whose shares you bought it.

According to Mc.Carthy (2007) there are four importances of research for business:

1. Description function.
Research helps us describe how particular phenomena could happen. For example, when you want to know how respondent will response your new product then you get the answer by conducting a market testing research. In that research you might make the product prototype and let some potential consumers try your prototype. By that research you can figure out how their attitude toward your product.

2. Explanation function.
Besides, provide you with information about "how things happened", research also helps you find "the cause" why particular phenomena could happen. For instance, you already know how your potential consumers' response to your new product. Then, you can conduct a deeper investigation, e.g. by interviewing them why they act like that, why they like or dislike your products, etc.

3. Prediction function.
After we can figure out what is the cause of any phenomena, then we can make a prediction in the future. For example, from our previous research we figure out the mayor consideration for consumers buy a smart phone is its physical form so that we can predict that mostly people may choose some brand of smart phone based on its physical form. Therefore, in the future we should develop a good-looking-physical-form product as consumers may want.

4. Control behavior.
This function is the highest level in research function because not all products which have passed research for years could success in shaping consumers' behavior. Control behavior means we not only can predict, but also we can shape and direct our consumers' behavior. We can use a phenomenal product such Iphone as our example. When the first time Iphone5 was launched in China last year, it incredibly could reach more than two million units sold in only three days after it launched. We note that Iphone5 actually not only achieved that sophisticated sales number, but also it has successfully changed consumers behavior toward smart phone. We used to think that telephone, even mobile phone, must have a lot of buttons. However, Iphone changes that paradigm with a belief that modern mobile phone needs only one button.

From explanation above we now understand how important research for our business. Research provides information needed by company to make right decision. When we conduct research, we must put attention on objectivity of information we gained. Objective means information we gained should be based on fact, even the fact is not the same as our expectation or in other words it rejects our previous hypothesis. In spite of that fact is different from our first hypothesis does not mean this information cannot be used. It instead can prevent us from make a wrong decision that will trap us to bigger problem.

Saturday, October 5, 2013

10 Advantages Of Marketing Research

Reasearch Design Methods If you think you know your market, aren't you? Ok. Let Say you have an insight of what your target audience’s wants and needs are. And then you plan your entire marketing activities based on a “guesstimate”.  It's not so advisable.

You may have a lot of data coming from different sources, but that means absolutely nothing if you don’t look at it properly and analyse it thoroughly. By properly researching your market, you get one step ahead. You have an advantage against your competitors.

Market research is a systematic, objective collection and analysis of data about your target market, competition, and/or environment and your goal should be to increase your understanding of them. What most people forget is this: market research is not an activity conducted only once. It is an ongoing cycle, or at least it should be if you are really going to benefit.

The power of information is outstanding when it comes to market research. The information you find can guide your most important strategic business decisions and usually, if done properly, the findings and conclusions you reach have a value that exceeds the cost of the research itself.

Here are 10 benefits of market research :

1. Market research guides your communication with current and potential customers.

Once you have your research results, you should have enough ammunition to formulate the most effective way to communicate to your customers. You should know what they like/don’t like to hear/see/do. Then you can tailor what you say to them to make them take action.

2. Market research helps you identify opportunities in the marketplace.

Research might make it obvious that a new product you have planned may not be what your market wants or needs. You may then decide to make modifications on what you are going to offer to suit your audience.

3.  Market research helps you minimize risks.

Through market research, you may find all the information you need to decide whether to take action on a particular subject. For example, you may find that the particular location where you wanted to open a shop already has a saturated market in your line of business, which should make you refrain from making that decision and look for a more appropriate spot.

4. Market research measures your reputation.

It’s always good to know how you measure against your competitors. Market research finds out just where you are and then, according to the results, you can take action to change perception.

5.  Market research uncovers and identifies potential problems.

You can get consumers’ reactions to a new product or service when it is still being developed. This should enlighten any further development so it suits its intended market.

6. Market research helps you plan ahead.

Research can estimate the likely sales of a new product/service and also the advertising expenditure required to achieve maximum profits.

7.   Market research can help you establish trends.

If you treat your market research as an ongoing exercise that you do periodically, you’ll find that you’ll have a lot of data to be able to analyse your customers and establish any particular trends.

8. Market research helps you establish your market positioning.

It’s important to know the position of your business at particular moments in time. Information from market research helps you benchmark and monitor your progress, which can be useful to make decisions and take action.

9.  Market research can determine the most persuasive ‘promise’.

Every brand needs to make a promise. If you think of the most known brands, they all make a promise to you and you usually know what is by just looking at their logo. It can be security, a fast and tasty meal or the assurance of top technology. It needs to be simple and market research can help you define what your brand’s promise is.

10. Market research can find that compromise.

The team involved in the launch of a new product/service all have their individual perceptions and gut feelings.  These certainly should not be ignored, but by going straight to the target audience, you will gain thoughts and opinions from people who may be less biased or less emotionally attached to a new development or service.  It helps gain a new angle, hopefully a compromise in just how you are going to go about a new launch, a new brand or a brand repositioning.

In a nutshell, market research is an invaluable tool that, at first, might seem expensive and slow, but it’s nothing more than an investment. As one of our very good clients always says, “ Best to measure twice and cut once to maximise your returns”.

If you had the choice of speaking to a good sample of your customers or be left in the dark only with your assumptions, what would you choose?