What Is Market Research?
Surely, you must have already seen that, during the electoral period, all the media mobilizes to publicize polls of preference for candidates among voters. In this article we will describe you the types of market research.
The objective, in this case, is to identify who is ahead in voting intentions, which is still a way to influence decisions.
After all, this is the raison d’être of market research, an instrument by which the preferences of a target audience can be identified .
However, in order to fulfill its objective, it needs to be structured in a coherent way with the stipulated goals, which may or may not be business.
Types Of Market Research: Which Are The Main Ones?
Imagine, for example, that you are conducting an academic study.
To do so, you will need research that allows you to validate a hypothesis or to confirm its rejection.
It is something quite different from electoral polls, which, as we have seen, are guided by simpler objectives.
Therefore, there are types of market research that are more suitable for certain purposes and others not so much.
The success of an initiative will depend on choosing the most appropriate format , as well as its correct application and subsequent treatment.
Let’s get to know the types of market research. and when they can be used.
In academia, exploratory research is the most used to support studies in which the objective is to better understand a phenomenon .
It basically serves to help the researcher to understand more deeply the context to be analyzed, helping to formulate hypotheses.
Such research can be done directly with people who are involved with the object studied.
Usually used in case studies , it is useful in the sense of increasing understanding of a certain topic or situation.
It can also be done through bibliographic analysis, helping to position the research within the existing literature, allowing for a critical argument.
Although widely used in academic studies, descriptive research can also be recommended to guide marketing and sales strategies.
This is because its role is to provide an overview of an audience , through responses that show behaviors or trends.
It is carried out periodically and, based on it, public policies can be formulated and new laws proposed, in addition to helping to create business strategies .
Note that, in this case, there is no researcher interference .
Unlike exploratory research, in which he may be looking for answers to previously prepared questions, in the descriptive one, the researched object “dictates” the rules.
In turn, causal research has a more specific goal.
In it, what is sought is to establish cause and effect relationships between variables, helping to understand how and why a certain phenomenon happens.
Let’s say, for example, that you want to know what causes people to do word of mouth.
For that, you will need to know what factors lead them to get in touch with their favorite brands and, after that, to become their advocates.
Causal research, in this case, serves to support statistical models created with the analysis of the responses obtained.
Therefore, it must always be carried out with the support of software that can perform statistical tests in order to validate the sample and, later, the hypotheses raised.
Market Research Can Be Carried Out For What Purposes?
Although the academic environment is where research is carried out most frequently, it is in the business context that it shows more practical application.
This is because this tool can be used to meet different objectives, providing answers to real challenges.
That is, while in the academic scenario a studied problem may or may not exist, in the market scenario, research only has reason to exist from a concrete obstacle .
In other words: in universities, research is aimed at validating or refuting theories, while in the market it is used to support decisions .
Here are some of the most common goals associated with surveys for business purposes .
Consider a company that, in the face of falling sales , decided to better understand the causes behind it.
To do so, she will need to understand what might be leading people to consume less, right?
Therefore, it will be able to launch a market research to diagnose it and, from there, take the most appropriate measures to its reality.
In this context, it may find that unemployment among the individuals that make up its main niche market has increased.
It can also serve to identify if there has been a reduction in the market as a whole, that is, if there are fewer people to be served in a region of interest.
Benchmarking is a well -known technique by which a company decides what to do based on the mistakes and successes of a competitor or a model considered ideal.
In that case, it will need information to identify where, how, when and why a certain company achieved a result.
It can do this by collecting publicly available data or by going out into the field , asking directly the people involved.
This is perhaps the most difficult point, as data on a company’s performance is not always publicly available.
Mapping customer habits is essential for an organization to be able to offer what consumers expect in terms of solutions and products.
Perhaps this is one of the objectives most often associated with market research, due to its practical application.
A company wants to sell more , and to do so, it will need to know what people want to buy and how much they are willing to pay.
Thus, nothing more appropriate than starting by identifying your consumption habits through direct questions.
This type of objective can also help to define new commercial strategies and even justify an expansion or contraction.
The more well-known a brand is, the more customers it tends to conquer.
So, to measure this parameter, nothing more indicated than the traditional survey.
It helps not only to identify whether a company is recognized by its audience, but also to assess how people relate to it.
Market research can also help to understand what expectations individuals have regarding their preferred brands.
In this way, it is useful to redefine strategies, launch new products and services or even withdraw them from the market, if necessary.
According to a survey by Juno , the second biggest cause of delinquency among customers is a bad experience , in addition to dissatisfaction with the services provided.
It is no coincidence that the most serious companies send a lightning survey of satisfaction whenever a consumer uses the SAC or its ombudsman channels.
They know that a happy customer talks about the brand to 10, while one who is underserved talks to 100.
Therefore, market research to assess how satisfied the consumer is with the service received or with the products purchased is so relevant.
It helps not only to improve weaknesses, but also to prevent a dissatisfied person from publicizing their discontent, which will certainly damage the brand’s reputation and credibility .
Another thing that the most attuned companies know is that not only the external public needs to be “pampered”, after all, the internal public is as important as the final consumer.
In fact, employees are the first customers of a business, as they also consume to some degree its products and services.
Furthermore, it is a fact that satisfied employees work more and better , which ends up having repercussions on the consumer.
Therefore, a market survey to assess employee satisfaction is the first step towards meeting customer needs.
Types Of Market Research: What Are The Advantages Of Doing It?
The more research is part of a company’s strategic management , the better equipped it will be to deal with changes in the environment in which it operates.
After all, as Charles Darwin said: “It is not the strongest that survives, nor the most intelligent, but the one that best adapts to changes”.
In this sense, research is the best way to detect market movements and, therefore, anticipate possible threats and opportunities .
A well-conducted survey can lead to success and achievement of objectives, as long as it is based on realistic estimates.
Let’s see, then, what are the benefits of using this powerful tool?
Identification Of Opportunities
They say that crises generate opportunities.
However, without data and information , a turmoil can end in loss and, ultimately, in bankruptcy.
In order for a moment of instability to be transformed into a springboard for success, market research is undoubtedly the number 1 tool.
In this aspect, it is not enough just to understand what people want.
A prepared manager knows how to read between the lines to spot hidden opportunities at first sight.
This is because the consumer‘s will is not always the only parameter to adopt.
In some cases, it is worth betting on innovation and, for this, market research can give good clues.
Get To Know The Competition Better
In the same way that a consumer who has his habits identified can be better served, a competition is only overcome when its strengths and weaknesses are known.
On the other hand, as we have seen, data on the performance of one or more competitors is not always available for consultation .
In the absence of accessible data, market research can be the solution to learn about a competitor’s modus operandi .
A good example of this is companies that use the hidden shopper technique to learn in detail how the competitor’s service is, as well as their flaws and strengths.
Minimize Investment Risk
Expanding a business seems to be the harbinger of more sales and guaranteed profits.
However, the plan can backfire when the company does not provide itself with information about the markets it intends to explore.
Perhaps one of the best-known examples of how a lack of information and strategy can ruin even established brands is the Starbucks coffee shop chain .
In 2008, it opened no less than 87 new stores in Australia in a short period of time.
Today, its managers know that this accelerated expansion ended up causing an oversupply, which caused people’s interest to decrease.
The result was a cumulative loss of $105 million over eight years of operations.
The lesson that remained is that it was better to expand slowly and, with that, pique the curiosity of the Australian public.
This could have been done if the food giant had launched market research to support its decisions .
Closer Relationship With The Customer
In the service sector , good performance depends directly on the quality of service .
This is because, in this segment, the “product” is intangible and, as such, the consumer‘s perception ends up being influenced by the way in which it is served.
Therefore, when the customer has a good relationship with a brand, he tends to consume more and, with that, become its defender.
In this sense, market research helps to identify which points the company needs to optimize in its service and relationship channels .
With this instrument, it can even improve in key performance indicators such as Average Handling Time (TMA), Best Time to Call, Average Waiting Time (TME) or Net Promoter Score (NPS).
Types Of Market Research: How To Do Market Research In Practice?
There are plenty of good reasons to carry out market research in your company, right?
Whatever your goal, rest assured that with a well-structured survey, they will be closer to being achieved.
However, it’s not enough to just ask random questions or questions based on what you think might work.
Market research is a tool and, as such, there is a whole set of techniques that need to be mastered before using it.
See below how to do this in a simple and direct step by step.
There is no research that is not preceded by one or more clear objectives.
Therefore, the first step to be taken is to define what you intend to discover with the questions that will be asked.
Some examples of goals you can explore:
- Find out which brand is preferred by consumers in a region
- Identify trends by raising customer expectations
- Knowing the demographic profile of people in a locality
- Gather data to justify an expansion.
A very important aspect is that the objectives must be measurable and, whenever possible, of the SMART type .
After defining the objectives and identifying the audience to be addressed, it is time to select a sample that is representative of the location or profile to be researched.
In this case, the equation is simple: the larger and more qualified the sample, the more accurate the results and the more reliable the research will be.
3. Data Collection
The already highlighted IBGE survey is carried out live and in color, with census takers going to households to collect the data.
However, there are other faster and more practical ways to collect information, including the use of online questionnaires through platforms such as Google Forms .
After the research has been done, it is time to analyze the results, crossing them with other complementary researches or, if possible, submitting them to analysis by software such as Tableau or IBM SPSS Amos.
Tips For Doing Effective Market Research
Check out below what to do and what not to do when setting up a champion survey:
- Build a persona or define a target audience
- Try to explore niche markets that are still little known
- See what the competition is doing and get ahead
- Moderate the amount of questions, avoiding long questionnaires whenever possible
- Take care of the sample size so that it is not too small – take previous research that is similar as a reference
- Pay attention to the profile of the people who will respond to avoid biased or biased answers
- Try to analyze the data with state-of-the-art software and with the guidance of trained professionals.
We hope that you have understood the types of market research.