How Market Research Impacts Company Strategy
July 15, 2012 Pros Corner
For the future success of a company market research is essential. But for such research to have a positive impact clear parameters need setting because the results will have an impact on your company strategy. This is easier said than done because establishing a link between market research and your desired business goals is not always obvious, especially if you are new to market research. As a starting point you need to understand how market research will impact your company strategy.
For a business to be successful, they need buyers, an audience willing to invest in their products and services. Therefore business owners need to establish their audience, where to find them and what makes them tick. And this is where market research comes in most useful because with these answers you can determine your company strategy.
Until you can hone in on a single objective market research can be confusing. Too many questions will result in too many answers, and they will probably not correlate into a pattern that gives you an obvious company strategy to pursue. Therefore you need to focus your research on specific areas of your business by boxing your questions into categories.
Possible Impacts on Strategy
When drawing up a list of questions, ask yourself what information is critical and how can you determine what your audience wants. For example this could be making a decision in which of your products is most popular at any given time and where you will need to position in the market when you come to launch your advertising campaign.
Also consider whether the questions you are asking is a “must know” or a “would be nice to know.” If you have a ton of questions you can save time and money in processing the research if you examine the questions and drop the “would be nice to know,” questions because they are not going to provide critical information.
Where and when to advertise
One of the most critical decisions you will have to make when marketing your products and services is where to find your audience. To do that you need to know where they look. Advertising costs are one of the biggest outlays for a business in terms of cost and you can easily throw money into an advertising campaign that does not work if you are not advertising in the right places.
One of the key aspects your market research campaign should focus on therefore is what types of media are people most tuned in to and what are they most responsive to when it comes to purchasing products and services. This will obviously vary from one business to the next, but the principle is the same. Where do you dress your shop window?
Another important factor you should consider when deciding on the best strategy for your business is timing. When is the best time to unleash your advertising campaign? Is it a certain time of the year, around pay day each month or on a weekly basis? Market research can help you determine when a prospect is most likely to buy, want or need your product.
Market research does play a major role in the strategy of a company and needs as much attention and planning in its own right as the overall business strategy. Because of the impact it will have on your decision making keep it as simple and focused as possible so that the results of your market research will have a greater positive impact.