What do they do?
Market research companies utilize data, insights and research to guide the development of new products, measure markets, and enable business growth and consumer understanding. Using a vast array of techniques and methods, over 135,000 employees of this industry gather insight from opinion, market feedback, data analytics, and through social research. Forty-six per cent of global market research uses digital and online technologies. The United States accounts for forty-three per cent of the market research shares.
How can market research companies help my business?
Market research has been around since the 1920’s, when advertisers started to see the advantages of having market demographic information, at that time gleaned from sponsorship of different radio programs.
Engaging a market research company allows a business to focus on creation and enhancements of their products, and then get them to their target market as quickly as possible. The end game being to sell product rather than conduct investigations of their competitors products and pricing, ascertaining who is buying the products, how to encourage those customers to buy, etc.
Market research companies will provide supply and demand information, prices of different items in the market, will hone in on the purchasers down to age, ethnicity, gender, psychological profile, different ways a product is used, and based on analysis of internet usage, how people are searching for similar products and where they are buying them on the web.
They can also offer insight into the risks, opportunities, weaknesses, and strengths of a business venture based on similar performers. Market research companies can let your company know how effective different advertising approaches can be. With eight per cent of all purchase transactions being made on the web in 2017 and projections that this number will be up to sixteen per cent in 2019, it’s important to understand whether it’s best to spend your advertising budget all on television and print or if you’re better off targeting social media, online videos, search engine optimization (SEO), or pay-per-click (PPC) advertising.
Speaking of advertising on the Internet….
Consumer research on the Internet is at an all-time-high. Not only that, availability of international products is also continuing to rise. Items that were only available to consumers after import ten years ago today are being offered direct to consumers through international online sales. This brings a continually growing competitor base that requires regular monitoring to understand its impact. Market research companies not only include this activity in their compilations or marketing effectiveness, they also utilize online surveys and social voting communities to gather data regularly.
To simplify, market researchers help companies understand what people want to buy, what they are willing to pay, who will purchase the product or service, and the volume and ‘location’ of potential buyers in the total pool. Using this information, they will extrapolate the potential sales of a service or product, target success strategies, and guide you down the most favourable advertising avenues.