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Market Research and Your Company

Posted on March 23 2016 | Author: Alex Lazier

The advent of advertising was here. The date is November 2nd, 1920 in Pittsburgh, Pennsylvania and the first radio advertising licence had just been purchased. While undeniably monumental, early advertising lacked the direction and precision which market research would eventually facilitate over the decades to come. Early marketing managers would simply create and advertise with the optimism that readers would be influenced through the information provided. However, it was not until Harvard psychologist Daniel Starch pioneered the first market research firm in the mid-1920s that quantifiable data was utilized in supporting serious company strategies.

Nearing a century later, market research has evolved into a pillar of corporate strategy. With increasingly precise technologies and algorithms with abilities to collect information on the most specific of demographics; effective businesses have rooted themselves in high-level market research.   

Though broad in terminology, market research is defined as “The action or activity of gathering information about consumers' needs and preferences.” The current mediums of which this information is identified and interpreted include:

Market information

  • Being cognisant of applicable commodity prices on the market
  • Recognition of supply and demand situations
  • Understanding social, technical, and legal aspects of market

Market segmentation

  • The division of the market or population into subgroups with similar motivations
  • Division allows for deeper analysis of geographic differences, personality differences, gender differences, demographic differences, technographic differences, use of product differences, and psychographic differences

Market trends

  • Identification of patterns in the market
  • Ability to forecast events which have bearing on profit, production, and market value

SWOT analysis

  • Written analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT) to a business

Marketing Effectiveness

The measure of marketing ROI through the means of:

  • Customer analysis
  • Choice modelling
  • Competitor analysis
  • Risk analysis
  • Product research
  • Advertising the research
  • Marketing mix modeling
  • Simulated Test Marketing

How can your company benefit from Market Research?

As mentioned by the Canadian Government, the goal of conducting market research is to equip businesses with the information needed to make informed strategic decisions on innovation, growth, and the 4 P's:

  • Product — Improve product or service based on findings reflecting customer wants and needs. Focus on features such as function, appearance and customer service.
  • Price — Set a price based on popular profit margins, competitors' prices, financing options or the price a customer is willing to pay.
  • Placement — Decide where to set up and how to distribute a product. Compare the characteristics of different locations and the value of points of sale (retail, wholesale, online).
  • Promotion — Figure out how to best reach particular market segments (teens, families, students, professionals, etc.) in areas of advertising, publicity, social media, and branding.

In summation, by conducting research on a regular basis, businesses keep up with the market dynamics by pre-emptively adjusting to new regulations and technological breakthroughs. While intuition through experience can prove helpful at times, it is research and facts that paint the more accurate picture of your company’s market.


Sources
Diaz Ruiz, C. A. (2013). Assembling Market Representations. Marketing Theory 13 (3): 245–261.
Drucker, P. F. (1974).
 Management: Tasks, Responsibilities, Practices. Australia: Harper & Row. p. 864.
Government of Canada. (2015). Market research and statistics. Canada Business. Retrieved: March 16, 2016
Pauline M., Mark T., Barbara S., Michael S. (2009) The SAGE Handbook of Marketing Theory. SAGE Publications. p. 61-82.

Photo Sourced
Best Finance. (2015). How to Choose a Currency for Your Offshore Bank Account. Retrived from: bestfinancenetwork.com/tag/banking-services

 

Alexander Lazier
Market Intelligence Specialist
Bioenterprise Corporation






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