Research for Your Marketing

1. Types of Research

Five areas provide key market intelligence.

1.1 Customer research looks at who you sell to and who else might buy.

• You need to know the numbers and types of people who might become customers.
• You need to understand as much as possible about customers' and potential customers' behaviour, needs, expectations and buying patterns.
• You are looking for possible segmentation opportunities. The more precisely you can identify each market niche, the more you can sell to it.
• Loyalty and satisfaction levels among your existing customers are key factors. Any shortfall among your competitors' customers offers an opportunity. (See Building customer loyalty.)
• You need to know how customers view your customer service.

1.2 Product research looks at what you are selling, how it compares with other products and how it might be refined and developed.

• You need to establish the competitive position your products hold.
• You need to test the potential acceptability of new products and services.
• You need to be aware of new technology that may provide opportunities or threats.
• Research can help you understand where your products are in their life cycles.

1.3 Promotion research looks at what impact your publicity spend is having.

• How effective is your activity?
• How do you use your sales force (including telesales)?
• How effective are your advertising, point-of-sale materials, mailshots and website?
• Does your company's image help - or does it work against you?

1.4 Pricing research tests whether you could be selling your product for more. (See Pricing.)

• Investigate perceptions of price versus value, both among customers and among non-customers in your target markets.
• You need to know whether your product's positioning is right for its price point.
• Full and up-to-date data on competitors' prices is an important factor in many business decisions.
• You need to know, preferably before you try them out, what the effects of discounts or loyalty bonuses would be.

1.5 Distribution research examines how your product gets to the marketplace.

You may not be aware, until you do the research, of all the direct and indirect channels your product passes through.

• Who are the intermediaries that stand between you and your customers? Do the brokers or wholesalers who matter recommend you to end-users?
• Does the bulk packaging of your goods help or hinder your sales?
• Are the transport methods you use cost-effective and appropriate to the size, weight and fragility of your product?