Analyzing market research
Market research is a vital tool when it comes to running your business, one that companies spend millions of dollars a year to gather and analyze. Market research answers such questions as:
- Who am I marketing my products or services to?
- What do my potential customers need and want?
- Who are my competitors?
- How do my competitors' products differ from mine?
- How can I market most effectively?
- How do my customers respond to my products?
- What are the demographics of my potential customers?
- What is the best way to reach my customers?
Market research can be done in a variety of ways, from in-depth, sophisticated measures to something as simple as a phone call or survey.
Once you have gathered your market research, the next thing you will need to do is analyze it. After you have analyzed your market research results, you will be better able to answer the questions above and market to the right people.
Analyzing market research
How exactly is market research analyzed? There are many different ways you can go about it. These include:
Because market research is such an important aspect of running a business, there are many businesses that provide market research and analysis services. These services can be very useful, as they allow professionals who understand how to conduct and analyze market research to help your business make the best decisions regarding marketing once they have analyzed the research.
This type of analysis is typically worth the money, as companies that are devoted to market research analysis often have access to more sophisticated tools and software to help analyze data.
Descriptive data analysis
This is one form of analyzing data that works by describing the results of your market research. It is most commonly presents quantitative data in the following forms:
- Numerical values (how many people would buy your product after a sample or test of it and how many people would not.)
- Visual representations such as charts, tables, and graphs
- Averages (such as the average age, education level, or combined household income of people who use your product)
- Grouping of categories
An example of descriptive analysis would be to gather market research about the demographics of those who buy your products, and then turn the information into a chart to get a general idea of the type of people who are giving you business. This is a simpler form of market research analysis because it typically provides a summary of the data.
Inferential Data Analysis
Where descriptive data analysis typically only gives a picture or numbers, inferential data analysis digs a little deeper and provides insights (or inferences) that in turn allow the researcher to make judgments and predictions. In order to conduct inferential data analysis, however, descriptive data is often required.
Taking the numbers gathered from descriptive data, inferential data analysis works to:
- Use the information from small groups and samples of people to come to buying conclusions about larger groups
- Make forecasting decisions based on the information provided
- Compare results and groups and make judgments for marketing based on the results (for example, teenagers may be more likely to use your services than Baby Boomers)
Market research is essential to successful marketing. But what you do with that research is equally important. Analyzing your market research will then help you know who and where to market your products.