1.1: Introduction to Market Research
The word research refers to the process of looking for answers to problems. In the context of marketing, these problems are typically related to changes in consumer and competitor behaviour. These changes can be caused by trends, such as Tiktok, unplanned global changes like the COVID-19 pandemic or climate change, or planned changes, such as the release of a new iPhone. Market research often focuses on consumer needs and preferences, including what consumers buy and how much they are willing to pay for goods and services, as well as identifying the advantages and disadvantages of competitors.
This is important because businesses and organizations across a wide range of industries need to know who they are reaching—and sometimes even more crucially, who they are not reaching.
The following are some reasons why market research should be considered:
- To gain insights into your consumers, this can include:
- What customers want and need from a brand
- What customers like and dislike about the brand
- Why customers buy the brand’s goods or services
- Why potential customers might choose one brand over another
- Why (or why not) customers make repeat purchases
- Understanding the changes in your industry and business
- Discovering new market trends
- Finding new potential sales avenues, customers, and products
- Finding and engaging new audiences
- Allowing customers to inform the strategic direction of the business
If marketers are able to understand customers and the greater business context, they will be able to market more effectively, meet their needs better, and drive more positive sentiment around their brand. All of this adds up to happier customers and, ultimately, a healthier bottom line.
