Do you know why, how, and when to do market research and then how to analyze market research? Let’s understand the term ‘Market Research’ first. Market research can be defined as the process of evaluating the feasibility of a new product or service, through research conducted directly with potential customers.
Analyzing market research is the process of conducting research to know how current or potential markets may receive a product, then analyzing the results of the research to determine a marketing strategy. Analyzing market research is an important part of your business and of course a larger part of any company’s marketing team job duties.
Why Conduct Market Research?
The purpose of conducting market research is to understand the market associated with a particular product or service and to decide how the audience will react to a product or service. Doing market research helps you position yourself in the market so that you can differentiate yourself from your competitors and also identify unmet needs in potential customers. Conducting market research can also help you understand what other potential markets you can move into and continue to grow your business.
Reasons for Analyzing Market Research
Here are some reasons to analyze market research:-
Helps in strategic planning
Market research analysis can help you draw conclusions about your company’s financial health and where you can continue to grow, whether it is into new markets or with new initiatives. You can analyze the strength of each plan and determine the strategic benefits.
Analyzing your market research can help you to identify relevant trends before your competitors and stay ahead of the market. Research work will be very easier when you will identify the current trend of the market.
Clarify your position
Market research data analysis can help you to place your product or brand in a better position as compared to your competitors. You can clarify how to best position yourself to potential customers.
Forecasts business projections
Analyzing your market research data can help you create an idea of what the future of your business might look like. You can plan your or your company’s future growth by it.
How to analyze market research?
Here are 6 steps explained that you can follow to analyze market research.
1. Set an objective
You should have a clear goal or objective in your mind. To have a successful analysis, it’s helpful to start with a clear goal or question that you want to answer to help you focus your research. Understanding what you want to know can also help you determine how you go about conducting your market research. When conducting marketing research, you can gather data that will answer the following questions:
- Who are my potential customers?
- What are the common shopping habits of these customers?
- How large is my target market and how many competitors are there?
- What are the price points in this market?
- How do I compare to the competition?
2. Develop a research plan
Develop a plan to execute your research. In this step, you can determine if you want to conduct your own primary research, if you can rely on secondary research or if you want both. You can find out which markets you want to reach out to and how to contact your target customers in a better way. You can also determine what parameters you would like to set for the research.
3. Collect data
Collecting data is very important in market research analysis. During this step, you gather the data you can analyze later, so you want to be as thorough as possible. You might put together a team to conduct various types of research and for the collection of research data. You may also want to look into different technologies or web services that can help you conduct your research in the most organized way.
4. Analyze the data
After the collection of data, it’s the turn of analyzing it. You can organize the data into categories and look through them to identify patterns. You can use any of the analysis models listed above for this portion of your research analysis. During this step, you look for any information that may help you answer your objective or key question.
5. Present the findings
Once you have identified the patterns, you can organize the data into a presentable form and share it with your team. This will help you communicate what you learned during your research and analysis. Additionally, you may want the input of other teams and managers when creating an action plan based on your market research, which is why presenting it to them can be helpful.
6. Draw conclusions
This is the final step in which you can draw conclusions from the market research analysis you have done. In order to draw a conclusion, you can follow the steps appropriate for the type of analysis you used, including the feedback from your team and coming up with an answer that fulfills your objective. You can take help from these conclusions for your next research.