Definition and Purpose of Market Research

Market research refers to the use of various market research techniques and methods on the basis of the study of the basic characteristics of the market environment (politics, law, society, culture, technology), demographic characteristics, lifestyle, economic level, etc., to achieve their own aspirations and needs through the stages of cognition, attitude, motivation, choice, decision-making, purchase, and use. The purpose of market research is to obtain valuable information to support business decisions and actions. Specifically, market research can help companies:

Identify and analyze target markets and target consumers, identify market opportunities and competitive advantages;

Understand and forecast market demand, supply, scale, growth, trends, structure, changes, etc;

Evaluate and optimize the characteristics, functions, quality, price, packaging, design, etc. of products or services;

Establish and maintain brand image, reputation, loyalty, differentiation, etc;

Design and execute an effective marketing mix, including product, price, channel, promotion, advertising, etc;

Monitor and evaluate the effectiveness and efficiency of marketing activities, provide feedback and suggestions;

Find and resolve market issues such as customer satisfaction, complaints, returns, competitive threats, etc;

Explore and innovate market opportunities, such as new products, new markets, new technologies, new models, etc.

Basic methods and steps of market research

The basic methods of market research can be divided into qualitative analysis and quantitative analysis. Qualitative analysis refers to the collection and analysis of market information through non-numerical methods, such as observation, interviews, focus groups, case studies, etc., to understand the current market situation, problems, opportunities, motivations, attitudes, etc. Quantitative analysis refers to the collection and analysis of market information through numerical methods, such as questionnaires, experiments, mathematical statistics, mathematical models, etc., to measure market size, demand, satisfaction, preferences, influencing factors, etc. Qualitative and quantitative analysis complement each other, usually with qualitative analysis to identify research questions and hypotheses followed by quantitative analysis to validate and quantify research findings.

The basic steps of market research include:

Determine the purpose and scope of research, clarify research questions and assumptions, formulate research plans and budgets; design research programs and tools, select research methods and samples, and compile research indicators and questionnaires; implement data collection, apply research tools to target samples through various channels and methods, such as telephone, email, network, face-to-face, etc., to obtain effective data; organize and analyze data, clean, encode, enter, summarize, count, classify and calculate the collected data, and use various analysis techniques, such as cluster analysis, regression analysis, factor analysis, correlation analysis, variance analysis, correspondence analysis, discrimination analysis, etc., to extract and present the connotation and rules of the data; Write research reports and suggestions, according to the research purpose and scope, and the results of data analysis, write a clear, complete, accurate and convincing research report, including the research background, purpose, methods, results,Conclusion, recommendations, etc., as well as related charts, appendices, etc., to provide enterprises with a viable basis for decision-making and action guidance.

How to identify target customers and consumer behavior through market research

The target customer refers to the enterprise from many market segments, select some of the market for deep cultivation, the customer in this market is the target customer of the enterprise. Consumer behavior refers to the behavior and psychological activities of consumers in the process of obtaining, using and disposing of products or services. Identifying target customers and consumer behavior is an important part of market research and a prerequisite for developing effective marketing strategies. Here are some tips and practices for identifying target customers and consumer behavior through market research.

Market segmentation and target market selection. Market segmentation refers to the division of the entire potential market into a number of different market segments, which should be independent of each other and have a certain scale, accessibility, stability and feasibility. There are four basic methods of market segmentation: divide the market based on geographical location, such as country, region, city, climate, etc.; divide the market based on demographic factors, such as age, gender, income, education, occupation, family structure, etc.; divide the market based on psychological statistical factors, such as social class, lifestyle, personality, values, purchase motivation, etc; the market is divided based on behavioral segmentation, such as purchase frequency, purchase volume, purchase occasion, purchase purpose, brand loyalty, usage status, etc. The essence of market segmentation is that these four methods are not rigidly distinct and can be combined flexibly, such as first a rough market segmentation based on geographic factors, followed by further segmentation of consumers in a geographic area through demographic factors. Target market selection refers to the selection of the most potential and attractive market segment as the target market of the enterprise according to the matching of resources, capabilities, goals and strategies and objectives of the enterprise. Market research methods for market segmentation and target market selection mainly include the following: one-to-one interviews, that is, in-depth personal conversations with potential consumers to understand their needs, preferences, motivations, satisfaction, etc.; focus groups, that is, inviting 6-10 potential consumers with similar characteristics, and a host guides them to discuss a certain topic and observe their reactions, emotions, attitudes, etc; questionnaire survey, that is, to a large number of potential consumers or send a questionnaire containing a series of questions, collect their answers, statistics and analysis; experiment, that is, under controlled or simulated conditions, to observe or measure the behavior or psychology of potential consumers, such as A/B test, eye tracking, EEG, etc.

Product positioning and brand management. Product positioning means that an enterprise determines a unique, attractive and sustainable market position for its products or services according to the needs of the target market and the conditions of its competitors. Brand management refers to the planning, establishment, maintenance and promotion of brand name, logo, symbol and design, so that the brand can form a stable, valuable and differentiated impression in the minds of consumers. The market research methods of product positioning and brand management mainly include the following: multidimensional scaling method, that is, by measuring the similarity or preference of consumers to different brands or products, the relative position of brands or products in consumers' hearts is drawn, so as to determine product positioning or brand image; correspondence analysis method, that is, by analyzing consumers' cognition or evaluation of the attributes or characteristics of different brands or products, find out the corresponding relationship between brand or product and attribute or characteristic, so as to determine product positioning or brand image; Discriminant analysis, that is, by analyzing the influencing factors of consumers' choice or preference for different brands or products, find out the discriminant function between brand or product and consumer choice or preference, so as to determine product positioning or brand image.

New product development and market testing. New product development refers to the design and production of new products or services through the process of innovation according to market opportunities and consumer demand. Market testing is when a company pushes a new product or service to some or all of its target market in the later stages of new product development to test the market response and potential sales of the new product or service. There are mainly the following market research methods for new product development and market testing: creativity generation method, that is, through various technologies, such as brainstorming, mind mapping, analogy, reverse thinking, etc., to stimulate and collect the creativity of new products or services; Concept testing method, that is, by presenting the concept description of new products or services to potential consumers, collecting their feedback, and evaluating the feasibility and attractiveness of new products or services; prototype testing method, that is, by showing prototypes or samples of new products or services to potential consumers, collecting their feedback, and evaluating the function and quality of new products or services; market test method, that is, through real prices in representative market areas, Channels, promotions, etc., promote new products or services to potential consumers, collect their feedback, and evaluate the sales and profits of new products or services.

Conclusionand recommendations

Market research is an important means for enterprises to formulate effective marketing strategies and improve their competitiveness. Through market research, enterprises can understand the characteristics and changes of market environment, competitors, target customers and consumer behavior, so as to determine market opportunities and advantages, and formulate appropriate market segmentation, product positioning, brand management, pricing strategy, new product development, channel construction, advertising, promotional activities, etc. The basic methods of market research are qualitative analysis and quantitative analysis, the basic steps of market research are to determine the purpose and scope of research, design research programs and tools, the implementation of data collection, data collation and analysis, writing research reports and recommendations. The application effect and value of market research can be reflected in some of the customer cases of Shangpu Consulting, which show the role and contribution of market research in identifying and selecting target markets, determining and optimizing the positioning and management of products and brands, and developing and distributing new products and channels suitable for the market. It is suggested that enterprises should choose appropriate market research methods and steps according to their actual situation and objectives, use effective market research techniques and tools, collect and analyze accurate and valuable market information, formulate and implement scientific and effective market strategies, and improve their market competitiveness and profitability.