Market Research – Key Terms, Concepts & The Importance of Market Research

Market Research is a key component of your digital marketing campaign. Therefore, it is a key component of any marketing strategy, digital or traditional. With that being said, today’s technology has provided a lot of incredible tools for marketers and advertisers to create successful market research.

Using The Internet

The world wide web and the internet were built for research. In other words, it is one of the biggest databases that can provide almost anything a marketer needs. Therefore, from consumer shopping to looking up incredible details you could think of, the internet provides.

This gigantic database makes it easy for everyone to find and analyze data than ever before. This is because everything – from the single searches to transactions, everything is recorded, and leaves a data footprint. 

Online Market Research

Today, it is a breeze for consumers to research companies and products easily. They could gather the information they need, compare prices and services with just a few clicks of the mouse, or the screen. Not only that, consumers can now leave reviews and share their thoughts about a specific product or service easily.

Of course, if the internet can provide all of these for consumers, it can also work wonders for companies. Brands can now study who their customers are in a more efficient manner. Companies can now see what their consumers are interested in, how they feel about brands, how to engage with them properly and more. This is where Market Research comes in.

What To Learn From This Article

In this article, we will talk about market research, why it is crucial to any marketing endeavor. We will also discuss key terms and concepts that you need to know before conducting research. Let’s discuss the key terms and concepts you need to be familiar with.

Key Terms for Market Research

• Bounce rate – this refers to the number of people who view one page and then leave the website without looking at any other pages. 
• Data – this is the statistics and the facts that marketers and researchers collected for analysis.
• Hypothesis – hypothesis refers to a supposition that is tested in relation to known facts, a proposition based on reason but isn’t necessarily assumed to be true.
• ORM – also known as online reputation management is the understanding and influencing the perception of an entity online
• RSS – or Really Simple Syndication allows everyone to receive updates without requiring them to constantly visit web pages in browsers
• Sentiment – refers to the emotion attached to a particular mention whether it is positive, negative or neutral

Concepts for Market Research

• Focus group – this refers to a form of qualitative research where several people are interviewed in an interactive group setting. It is an important tool used by marketers to acquire feedback regarding new products/services and etc.
• Online ethnography – this is when a researcher immerses themselves in a particular environment to gather insights
• Listening lab – this refers to a testing environment in which a researcher observes how a customer uses a specific product or service, or website.  
• Primary research – is a collection of data used to present a new set of findings from original research
• Qualitative data – this refers to data that can be observed but not measured.
• Quantitative data – refers to data that can be measured or defined. 
• Research community – is a community set up with the intention of being a source for research
• Research methodology – these are methods employed in research for reaching results
• Secondary research refers to the collection of existing research data
• Sample size – is the number of respondents in a sample of the population
• Statistically Significant -this refers to a sample that is big enough to represent valid conclusions. 

The Importance of Market Research

Now that we have discussed the key terms and concepts of market research, let us move on to why it is important. What is the significance of market research in your marketing campaign? 

Trend Changes

With everything that is happening in our modern world, everything is unpredictable. Trends come and go, things changes instantly in the digital age. What works for your marketing campaign today might not work tomorrow. 

Because of this, it has become increasingly more difficult to keep up with the trends and what customer needs. On top of this, a marketer also needs to consider popular opinions from the masses and competitors while staying at the forefront of the market at the same time.

Connect with your Market

Conducting market research is the best way to keep the brand current and on-trend while ensuring that you are meeting your customers’ needs. Market research helps brands make informed business decisions instead of just winging it. 

This involves gathering, recording and analyzing data systematically. The data marketers gather is not just limited to customers’ needs, it also requires data about competitors and the market. All of these data needs to be turned into insight that is used to drive marketing strategies and campaigns. 

Using Digital Tools

Using digital tools, data and connections, marketers conduct online market research. This is done in able to glean valuable insights about a brand’s target audience. It is the process of learning about your audience by engaging and observing them online. 

Today’s modern technology plays a major role in gathering data and connecting with research participants. The internet makes the whole process easier, quicker and more efficient to manage.

Benefits of Online Market Research 

• Data readily available at any moment
• Automated processes for finding, gathering and storing data
• Access to a large number of participants from all over the world
• Data can be automatically collected
• Cost-effective
• Quicker set up than traditional market research techniques.

At the end of the day, if brands and companies are able to understand their customers and the greater business context, then they can market more effectively. This also helps brands to meet their customers’ needs better and drive more positive sentiment towards the brand.

The whole process of conducting market research results in happier customers. And you know what they say, happier customers mean a more profitable bottom line for every company. Market research is one of the major components of what makes a profitable company. 

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