Understanding Market Research Methods
In order to be a successful business, organizations today need help understanding the types of people they are selling their products to and how they can appeal to their customer base. With the invention of the internet, this process has become much more difficult.
Because of the web, individuals from all across the globe are able to purchase items from venders in the United States or other countries. Though the internet is beneficial and makes selling product easier, it creates a huge base that customers can be pulled from.
Most companies have to draw their information from clients that are closer to home. They also interview and survey broader spectrums of individuals, so that they can hone in on one specific genre or age that is likely to be their target.
Market research really includes all different types of study, including sociological and economical aspects. Individual’s social standing, marital status, age, gender, and ethnicity all have the capacity to affect someone’s spending habits.
The sooner that an organization understands these characteristics about their customers, the easier it will be for them to utilize specific and effective marketing techniques. When researchers are determining the characteristics of a sample group or cross section of individuals, it is often necessary for them to perform interviews and send out surveys.
The data that is gathered is inputted and recorded. When it comes to sociological research, quantitative and qualitative methods are used. Quantitative have to do with numbers, like percentages and ratios of populations, whereas, qualitative has to do with in depth study of human nature and the « how » and « why » of situations.
Understanding what make people « tick » socially and cognitively can have a great effect on how scientists find and gather information regarding their spending habits. It can be predicted whether or not an individual or a certain age, race, or gender will be drawn to an item.
This information is used when it comes to advertising methods, as well. Once businesses understand their target group, they can use specified methods to reach them.
For example, if a company finds that their strongest customer base is adolescent and young adult women, they can utilize advertisements in areas and on sites where this type of individual would visit. They may want to use social networking, movie theatres, certain television channels, and specific websites, like popular shopping venues.
This is called segmentation, because it is the division of a population into subgroups that have similar wants and motivations. The process is utilized to determine geographic, demographic, personality, psychographic, gender, and use of product differences.
Data gathered like this can be extremely useful for all different types of purposes. Studying cross sections of individuals this way began in the 1920’s, but has since become the main method for understanding how customers choose the products they prefer to purchase.
It began during the Golden age of radio, when the majority of families and individuals received their entertainment through weekly programs broadcasted through radio waves. Because there was a large population of people to advertise to over the radio, research was needed to determine when certain samples were listening.
This information was used to discern when the most appropriate time was to broadcast certain ads and commercials. The same process is performed today.
When individuals are interviewed about specific items or more general things that they are looking for when they go to purchase something, the info is gathered and studied. It can then be used to market a product.
There are a number of different industries that provide this service to businesses. The mission is usually to obtain competitive advantage over other companies that sell similar products by being on the cutting edge of what is wanted and expected from the clientele.
Analysis is performed through a number of different methods, usually reviews of products and services. They then usually create a market plan, including what the business can expect as far as success and wat they should do once they have the info to use.
Learning more about a customer base can help a company or business really get to know the people that they are making products for and understand their motivations, likes, dislikes, and tendencies. This process is extremely important, so that the relationship between clients and business can grow and so that the masses can find the items that they want to buy.
Ignacio Lopez has been involved with marketing and business for more than 20 years. He specializes in web-based customer relationship management and recommends web based CRM for all your market research needs.