Marketing research technique to develop strategy for a Company
By Monica Smith
Marketing research is used by successful entrepreneurs to keep up with modern business trends and make better decisions. It also helps to maintain the competitive edge of the company. Let us look at those specific where market research would help.
- Understanding the customers - No matter what your business is, the customers make up the most important part. Often better information is needed about the size of the market and the target customers. Also, you need to know how they can be reached. Before trying to launch a product in a particular category, it is needed to what section of the society these people form and how to connect to them.
- Improving branding - It is important to understand how the consumers perceive them. The businesses need to portray the image people want to see and create a brand awareness in the market. It is also to be understood how the consumers view you in relation to the competition.
- Identifying new opportunities - The market research would help to identify new opportunities in the market. Geographic regions for expansion can be identified and the readiness of the market in terms of the new products and services can also be recognised.
- Getting insight into desirable features - The market research helps to understand whether the right features are packed in the new product or the existing one. A proper research would offer insights that can be used by the company to refine the products further. Feedback from the consumer is collected when a new product is being designed. data is collected from the consumers in relation to the design, looks, colours, usability and performance.
What are the analysis models commonly used?
The commonly used analysis models to build the strategy from the market research include:
PESTLE - It is one of the most successful marketing models that have become very popular. PESTLE stands for
- Political
- Economic
- Sociological
- Technological
- Legal
- Environmental
The analysis is used to conduct an environment scan and review competitors. It helps the organisation to view the situation it is in. It is also called by similar acronyms like PEST, STEEPLE or PESTEL. The only difference is that some other factors are also added to the basic ones. However, the 'PEST' analysis is best known, with Legal and Environmental factors added in as well.
Porter - M. Porter created the five forces model in 1979 to understand the five key competitive forces that have a play in the industry. The forces determine the structure of an industry and the level of competition. According to the model, stronger the competitive forces, lesser the profitability.
An attractive industry with high profits would include higher barriers to enter, weak buyers bargaining power, weak suppliers bargaining power, low competition and few substitute products or services
An unattractive industry that offers lower profits would include lower barriers to enter, intense competition, strong buyers and suppliers bargaining power and a multitude of substitute products.
Ansoff - The Ansoff model uses the Ansoff Matrix to identify the opportunities for growth. It includes a few strategic questions that can be answered through the matrix:
- Market Penetration - It shows how more products can be sold to the existing customer base
- Market Development - This factor shows how new markets can be entered.
- Product and Development - It dictates how existing products and services can be developed.
- Diversification - The last factor shows how new markets can be approached with new products or services, along with increasing sales goals with the existing customer base and acquisition.