Is Marketing Research Important for Small Business Owners?
Simply put, YES! Marketing research is important for small business owners, large business owners, corporations, and really all businesses. Keep reading to find out why! But first, what is market research?
What is Marketing Research?
According to Entrepreneur, marketing research is defined as the process of gathering, analyzing and interpreting information about a market, about a product or a service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into characteristics, spending habits, location and needs of your businesses target market, the industry as a whole, and the particular competitors you face. Marketing research is the foundation of any successful company and Is utilized in many capacities from identifying market opportunities and problems to making well-informed decisions. Marketers conduct research to make well-informed decisions, evaluate market actions, define opportunities and challenges, monitor performance, and improve the understanding of the company’s marketing process.
Why is Marketing Research Important?
Marketing research is used to identify problem areas in your business; it is essential to conduct market research because the results of your research provide your company with the necessary information to make a well-informed decision. As a marketer or business owner, it is vital to understand your customers and the conditions of the market. Marketing research can be conducted to acquire the information you need to gain insights. Utilizing research allows small businesses to gain insights into their customers, potential customers, industry, product/services, and market. This information, if utilized appropriately, can be beneficial and can help you enhance your marketing efforts and grow your business.
Marketing research will provide small business owners with ample amounts of data that can be utilized to enhance their business, boost sales, generate leads or customers, and become more competitive in their market. It is essential to conduct research to ensure that your money is being spent in the right place and is providing a return on your investment. Marketing research is also used to optimize marketing campaigns to ensure your business is targeting the right buyers, at the right time, with the right content. Are you targeting the right market? You won’t know if you don’t conduct research. But, what data should you collect to conduct your marketing research?
What data is used to conduct marketing research?
It is essential to consider what type of data you should collect in order to obtain the appropriate information you are looking for. Often your business already has the data you need from other areas in your business, such as sales reports. If you don’t already have this information readily available, you need to know where to go looking for it. Most information is available on the internet or at the local library, but not all, so it is necessary to determine where to begin your research.
Marketing research utilizes two types of data sources:
Primary data is data focused on specific decisions and is usually obtained from an outside source. These sources include experiments, interviews, surveys, and more.
Secondary data is data that has previously been collected within your company for another purpose, such as financial/sales/industry reports, and is typically cheaper and faster than collecting primary data.
Further, these data sources can be broken down into two types:
Quantitative data is data collected to quantify data and compare numbers to conduct a statistical analysis. Quantitative information is presented in the form of numbers or percentages to develop and understanding.
Qualitative data is collected to understand the reasoning behind an action and to answer the question of why something is happening. Qualitative data are presented in the form of words to recommend a course of action.
It is essential for small business owners and all business owners, for that matter, to have an understanding of the market to enhance their business opportunities, growth, generate new customers, establish effective marketing tactics, and more. Accurate market research is the foundation of a successful business and provides insights that can be utilized to your advantage. So, what are you waiting for? Contact us for a free consultation so we can help you improve your business!