Market Research – Your Roadmap for Success

What exactly is market research? Why is this powerful tool important for your business? Market research provides valuable insights on what people will buy, why they’ll buy it, and how to incite them to buy. It’s also used to answer the age-old question, why do your customers choose YOU? In this blog, I’ll highlight why market research is so critical to your business, as well as provide you with key reasons why you’ll need to hire a professional marketing agency for unbiased research.

Why conduct market research?

Market research sets your company up for success by providing the information that you need to make informed business decisions. Experience alone is not enough; arm yourself with research and facts to understand your market and your customers. Market research can help you:

• Understand your customers and their preferences
• Identify potential issues you may not be aware of
• Understand how your customers define your brand
• Identify ways they value the services/products you provide
• Learn how your customers compare you with your competitors
• Test new products/services and/or new markets
• Gauge the success of a new advertising campaign
• Identify performance, pricing and/or promotion opportunities
• Monitor the competition in your market
• Keep up with the changing marketplace and economy
• Mitigate risk in your business decisions

Market research methods

When conducting market research, there are basically two types of methodologies:

1. Qualitative researchis information that comes from conducting deep “quality” research through the use of discussion guides, and is typically gathered via phone interviews, face-to-face interviews, or focus groups. Questions are typically developed by use of a discussion guide outlining issues or concerns you’d like your customers to weigh in on. The answers can help you understand why they chose your company to work with, what they value in your service/product, what they think of your brand, and how they respond to your marketing/advertising. This type of research is best used when you want to understand the needs of your customer so you can better target your marketing and messaging to their needs and values.
2. Quantitative research is usually numeric, and done through a survey. It is far less detailed and there is no discussion with actual customers. It involves sending out a survey to customers and gathering statistical information, which can then be extrapolated to give you averages and percentages, e.g. 9 out of 10 customers are satisfied with your level of customer service. This type of research is best used for measuring customer feedback on an ad or a new service, or the launch of a new offering.

What unbiased research means

Almost every business owner I know says that they know their customers, that they speak to them on a regular basis and if there was a problem, their customers would tell them. Sorry to say, but this is rarely the case. Just like we don’t tell the server that the food was really bad, our customers may very well give us a truthful answer, but more likely they will give us a version of the truth. When a third party speaks with your customers, they feel this is their opportunity to really share the “truth” without hurting any feelings. If you are asking your customers directly then this is 100% biased research and is considered invalid because you have a vested interest in them being satisfied customers. Unbiased research doesn’t allow opinions, nor preconceived notions or preferences to affect the research. It is conducted with an entirely open mind and not biased in any way towards a desired outcome.

Market research benefits to your business

We’ve been conducting market research for almost two decades and I know how it can positively impact a business by providing actionable insights that can act as a catalyst for organizational growth. These insights will equip you for better decision-making and provide you with a greater understanding of customers, and competitors. Market research can help you to maximize the potential of your current business activities and create a roadmap for targeted marketing strategies and future growth. Every business, large or small, can benefit from having market research in their arsenal. 

Use a professional agency to conduct market research for your company

Market research is not a DYI project. It’s very time consuming and requires trained and skilled resources to perform, analyze and deliver results without any research bias. Set your business up for success and hire a professional marketing agency with proven processes, resources and analytics to maximize the potential of your market research.

CreativeWorks Marketing will work with you as a trusted partner in achieving your business goals. As a first step, we’ll establish clearly defined goals for market research in addition to determining what you need to know and why. We’ll perform, analyze and deliver results of the highest quality and keep the data confidential. Contact us today and let’s discuss how market research can benefit your company.

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The Basics of Branding

Branding is one of the most important aspects of any business, no matter what type of organization you run. Having an effective brand strategy can give you an upper hand in today’s competitive market. You may be asking, “What exactly does branding mean?” “What is a brand strategy?” and “How do these two things help my business grow?”

Put simply, your brand is a promise you make to your customer. Your brand tells customers who you are, who you want to be, and what they can expect from your products and/or service.

Are your services expensive and serve a niche market? Ask yourself, is your service high quality at a high-cost, or, low-cost but high-value? You’re going to have to choose, because you can’t be both. Who you are should be based on what your target market wants, and who they need you to be.

What is a Brand Strategy?
A brand strategy is the what, where, when, how, and to whom you communicate your brand messages with. A good brand strategy differentiates your offering from your competitors’. In thinking about your brand, try answering the following:

• What is your company’s mission?
• What are the benefits and features of your products or services?
• What do your customers and prospects already think of your company?
• What qualities do you want them to associate with your company?

Learn the needs, habits and desires of your current and prospective customers. And don’t rely on what you think they think. Know what they think.

Brand Equity
Having a solid and consistent brand leads to strong brand equity (the intangible added value brought to your company’s products and/or services that makes it acceptable for your company to charge more for your products and/or services than what seemingly identical unbranded products charge).

A great example of brand equity is high-end footwear designer Christian Louboutin. Louboutin launched his line of luxury, red-bottomed women’s shoes in France in 1991. The red-lacquered soles have differentiated Louboutin from other luxury shoe brands, and have influenced women all over the world into buying and wearing high-end shoes. People will pay more for the promise of luxury, quality, and the red-bottomed recognition that comes with wearing Louboutins.

Bottom line: the more recognized your brand is, the more real estate you take up in your consumers’ minds, and the more power you have to persuade your target market to buy your brand.

Defining Your Brand
Trying to define your brand is like a journey of corporate self-discovery. It can be time-consuming, difficult and at times uncomfortable – but in the end, it’s worth it!

Is your brand defined? Do you have a strong brand strategy in place? Do you understand the needs, habits and desires of your current and prospective customers? Do you rely on what you THINK they know rather than KNOWING what they know? Comment and share your branding successes and failures with me. If you are looking to define your brand and/or develop a brand strategy, please feel free to contact me at 416-653-3053, or info@creativeworksmarketing.ca.

Case Study: How a customer analysis saved thousands for a B2B client

Looking for the “wow” factor in your business is not always about what you want your company to be for your customers, but very often, it is more about what your customers value about your company. As a first step to creating powerful strategic marketing plans, we always recommend market research to our clients. Market research, specifically customer analysis, is the most powerful tool marketers have for really finding out first hand exactly what your customers value and why they choose you over your competitors.

Many companies want this business intelligence and feel they can “do it themselves” with an email survey or direct mail piece. Well, with almost 20 years in the business, I can tell you that research obtained by “doing it yourself” is truly invalid research. Research needs to be conducted by an unbiased third party who can listen and respond without prejudice or emotion.

I’d like to share with you the big wow factor that came as a result of the research we conducted as the first leg in a strategic marketing project. We’ll call this company ABC Consulting. Prior to our engagement, they were about to “press the button” on several online marketing tactics including investing heavily in a new website with interactive capabilities and launching into social media networking sites. We convinced the client to “hold off” on implementing these tactics until after we conducted a competitive analysis and customer analysis. They took our recommendation and decided to hold off and are eternally thankful that they did. It is true, as with most qualitative research, that the truth lies in asking the “right” questions and so we personally spoke to our client’s customers, asking them a host of custom questions to determine not only what they value in the service they are receiving, but how they feel what they are getting differs from other competitors.

There was not one customer we spoke to that values online communication, stating that they never visit ABC Consulting’s website, and have no need for social media. What do they value? Personal calls, face-to-face meetings, etc. The result of this research is a 180 degree shift from what our client had determined was what their customers’ wanted. As I have said in many of my blogs holds particularly true here: no tactics before you understand who your audience is, and what they value. If our client had executed their online tactics, what type of success do you think they would have had? My guess is none, as their customers never visit their website and new customers search for this service in other ways, but not online.

The research revealed many values, behaviours, wants and needs of ABC Consulting’s customers and competitors, but none stronger than a 180 degree shift in thinking!

With this research in hand we are now able to develop a targeted and strategic plan, rooted in solid research, and our client will save the thousands of dollars they were about to spend on the wrong tactics: tactics that were rooted in guess work and marketing pressure to conform.

My take-away for all business owners is to take the time to get to really know your customers, NOT through your own personal dealings but through someone else’s eyes and the result could be a game changer!

When was the last time your company conducted third party qualitative research? Do you think you need to conduct research before you execute a new marketing initiative? Are you willing to try new tactics without knowing what your customers value? I look forward to you sharing your thoughts in our comment section.

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