Everyday in Business we make decisions.
Each decision bring us one step forward, or maybe not.
-Don’t get me wrong, failing is a great thing! If you never fail, you’re not trying too hard! But, keep track of why/when/what…
Anyone who has never made a mistake has never tried anything new- Albert Einstein
So, I want you to take the risk, to innovate, to be bold, to think outside the box and get out there telling the world:- I am exactly what you want!
So it’s about taking risk but… don’t forget that you need to create something your customers love.
So, To reduce the risk, it’s essencial to understand your customer. And this is why we conduct market research.
Market research is a important tool for growing or reaching your business goals. Our business decisions must be based on understanding your customers and the business environment.
When do you use market research?
Market research is a tool used beyond the whole marketing function, which we know as Marketing mix.
The traditional Marketing Mix is defined by four aspects: Product, Price, Promotion and Place. Today we can find 7.
All the product variants. Normally product related research cover things like: Understanding the customer need, features and physical appeling attributes like shape, taste, or colour. Packaging or even how customer’s related to the product.
This is everything associated with pricing strategy of the product. And It doesn’t mean you are going to reduce salaries or reduce quality. We are talking about strategy, leave being “cheap” to the competition.
We are talking about everything related to price, which will vary according to how desirable your brand is perceived to be over the competitor’s. There will be limits on price within any product category, but we need to find out: what the ideal price, how to increase margens, how to present a differentiator, — in general, offering a benefit on which customers place high value.
So, when are you going to use price-related market research?
To understand how your customer perceived price/value versus your competitors, to whether use promotions, to know how sensitive the market is and how it responds to small changes in price. To stablish price points or to create a new business challenge related to product development, productivity, etc.
Most companies think about price as their biggest challenge, but in most of the cases they spend time understanding their customers or creating brand value.
Promotion includes everything to do with how product is promoted, live events, sponsorship, advertising, public relations, viral marketing, etc.
Effective promotions involve delivering the right message to the appropiate messanger in the perfect time and right environment.
The RIGHT Message!
Memorable and Relevant.
The APPROPRIATE Market!
The PERFECT Time!
But how? Promotions-related research cover: The best time to promote, how competitor influence your customer’s choice, promotion awareness, best message, comprehension, and relevance of the communication, potential sponsorship, advertising and other communication opportunities.
Refers to where the product is sold (channels). Online or Shop: -Where buyers expect to find your product (P/S), the sale process, product placement, store design, how customers will access to your service, etc.
It is essentially the customer’s perception of product, price, promotion and place that is the key, and is where Market research is used.