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Market Research

Conducting Market Research Effectively

So you've figured out your "Why" and you know exactly what niche you fit into.

Does this mean that you are ready to create your Squarespace website and begin running advertisements?

Not so fast, young one.

  • What is the ideal clientele for you?
  • What price will you charge? 
  • Will there even be a profit on this new product?

Do some research to determine whether your concept is truly worth pursuing before throwing a lot of time, money, and hope into it. 

This is where market research comes into play.

I'll walk you through my process for conducting exploratory research on a new market in this article. When I'm working on a new product idea, this is where I spend most of my time. 

"Give me six hours to chop down a tree, and I will spend the first four sharpening the axe." - Abraham Lincoln

If you nail this step, everything else starts dropping like dominos.

What is Market Research?

If you've ever used Bumble or Tinder to meet people, you've conducted market research.

Before Covid, you wouldn't just randomly decide to meet someone for a drink halfway across the city if you matched with them on Tinder. 

What if they desired to make a jumpsuit out of your skin?

What if, worse yet, they were a Trump fan?

All physically fit individuals would dedicate approximately one hour to begin excavating some soil. 

It doesn't take long to delve far into their Instagram feed, whether out of curiosity or terror (being extra careful not to double-tap on any one-year-old photographs).

That, my friend, is market research.

You're looking for:

  • their likes,
  • their old lovers,
  • what kind of food they like,
  • what kind of music they like.

You're searching for similarities and justifications for ignoring them at the same time.

The Bumble dates who inquire about your well-being and if your new hamster, Fizzy, fulfills your cat's role after your foolish college ex snatched it are, ironically, the finest market researchers. 

How does this apply to the corporate world, then? 

The process of learning more about the individuals you wish to sell to in order to assess the potential profitability and success of your offering is known as market research.

What Does Market Research Tell You?

Many things can be learned via market research; however, the following is a list of the most crucial questions to ask:

  • Where do your ideal customers look when they want to research what's available?
  • Which of your competitors serves as an information source, offers choices, or inspires your target audience to purchase?
  • Who are the thought leaders in your niche that your target audience
  • What's trending in your industry
  • Who are your customers and what problems do they have?
  • What influences them? What makes them want to buy and what turns them off? Be aware of your target audience's psychological factors. If you understand what triggers their decision-making, you can create strategies that will influence them to buy.

The secret is to use this market research technique to gather practical insights from your target consumer.

Types Of Market Research

1. Interviews

Online interviewing is a really good idea. You can converse with your interviewee (via voice mail or instant messaging) and see their body language as if you were in person. Interviews can be conducted in-person, over the phone, or through a webcam. This approach to market research is my favorite.

2. Focus Groups

Focus groups are an antiquated method used by brands to evaluate and modify their products. Members of the focus group are not even required to pay attention! Replicating the real-time feedback your clients provide you when they use and purchase your goods online is a preferable choice.

3. Product/Service Use Research

An efficient way to develop product or service research is to know why and how your target market consumes the particular product you are selling. You may uncover the genuine benefits that your customers discover in your product or service by including usability testing. This type of market research also gives you insight into how your target market views the feature set of the product and which features are most likely to be used.

4. Observation-Based Research

You can utilize an observational method to try to grasp your target audience's use patterns and how they approach using your product or service if you're already close to them. Making adjustments for the best experience will be made easier once you see what functions properly and what doesn't.

5. Ideal Avatar

You can gain a true understanding of your target audience's makeup, issues, and challenges by conducting buyer persona research. Additionally, it provides you with access to the reasoning behind each of their wants as well as the particular complaints they may have about your company or brand.

6. Market Segmentation Research

Understanding a set of people's wants, expectations, and aspirations by clearly describing them based on shared traits is known as market segmentation.

7. Pricing Analysis

A vital component of marketing any good or service is pricing research. Customers that feel taken advantage of by your prices can be avoided by calculating the market average. The most effective method for determining prices for different goods and services is to research your rivals.

8. Competitive Analysis

Competitive analysis gives you important insights into your industry. It may be an invaluable tool for evaluating the competition, learning what your target market is already purchasing, determining which brands to successfully compete with and outperform, and enabling you to stand out from rivals.

9. Customer Satisfaction and Loyalty Research

In recent times, one of the most significant measures of a company's performance has emerged as customer satisfaction. You may provide both new and returning consumers with enjoyable experiences by conducting research on your devoted clientele. You may use this data to gain insight into the best ways to encourage loyalty among your target audience.

10. Historical Experience

In my experience as a marketer, knowing who to target and where to target them for your products and campaigns gives you a huge advantage. It's like having a thorough street map to guide you through your marketing efforts to know what brought in your past clients.

Who Is Your Ideal Client?

Recognize your customers before you prepare your approach. Buyer personas, also known as market personas, are fictional, generic depictions of your perfect clients. They assist you in refining strategy, streamlining messaging, and visualizing your audience.

Here are the main characteristics that you need to think about when you are defining your ideal client:

  • Gender
  • Age
  • Business size
  • Job title(s)
  • Family income
  • What do they want? (security, money, confidence, etc)
  • Major challenges/obstacles keeping them from getting what they want
  • What are their buying habits

The goal is to reach and learn from your actual audience by using your audience members as a guide. You can even include non-industry persons in your target audience. For example, a jewelry business can easily identify with the image of a wife who want to honor her husband's birthday.

Looking through LinkedIn is my favorite technique to obtain information about business owners and perform primary research. Because it enables you to do in-depth, targeted research on your potential client with the majority of the previously listed criteria, Linkedin is a veritable gold mine for data collection. It would take too much time to go over all of my research approaches and methods where I utilize Linkedin as a data source rather than a social networking tool in one article.

Sample Market Research Survey Template

To assist you in crafting the ideal questions for your market research interview, here is an example script:

Rapport and Background (5 Minutes)

Spend a few minutes getting to know them. Ask them questions that demonstrate your curiosity about them as a person and as a consumer, rather than just generic ones.

  • Where do they live?
  • What books/magazines do they read?
  • What are their hobbies?
  • What is their job? Do they like it?
  • What do they like about it?
  • What’s their ideal job?
Discovery (10 Minutes)

After you've established a connection, find out exactly what change they desire.

What drives them, what are their objectives, the main reasons they are there, and what compels them to devote their time and efforts to finding a solution to this issue?

What is absent from their voyage? 

Where do they require assistance in order to succeed?

If they were to overcome this obstacle or undergo this transformation, how would their life change?

What are the available options that they are aware of to help them achieve their goals?

Competitor Research (10 Minutes)

It's time to dive in once you have a clear understanding of the solutions (your rivals) that your target market is aware of.

Provide precise details on the location and methodology used to investigate your rivals. 

How beneficial was the study they conducted?

What was the first thing you did, do you recall? Where did you look for further details? Inquire about search engines, websites visited, persons they got counsel from, and Facebook groups if they don't surface on their own.

For secondary market research, which delves deeply into your competitors' offerings, pricing points, and even allows you to sign up for their email lists and webinars to see the funnels they have put up, be sure to list out all of these rivals. We'll discuss this extensive qualitative study in more detail later.

This stage can be aided by tools like Hubspot and several Hubspot equivalents.

Result (5 Minutes)

And lastly, what was the outcome? Were they content? Would they suggest this to others? Did they achieve the desired transformation? What about this solution DID they LOVE? What was lacking that would have made giving it a perfect score of 10/10 obvious?

Wrap It Up (5 Minutes)

Make sure you're ending the conversation appropriately.

How would the PERFECT procedure or encounter be different from what they went through? What would the ideal price range or change entail?

Tell them how grateful you are for their time. The most crucial query is this one: Request to be introduced, then ask them that ELSE they know that is experiencing the same issue. Getting one-on-one introductions to potential clients is incredibly beneficial.

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