Knowing your customers and industry is essential to your company's success. That's where Market Research comes in. By analyzing your competitors and understanding the buying behaviors of your clients, your can ensure that you are correctly positioned in the market to reach your sales goals. Market research is a "hard" science and both numbers (quantitative) and behavior (qualitative) data should be collected. Market research firms vary from large international organizations to local boutique firms. If you need help choosing a vendor, click here.
There are a number of techniques that can be used to do market research. These include speaking with potential and existing customers, doing ad tracking, demand estimation, sales forecasting, test marketing, brand research, and competitor research. Based on your needs, a market research firm should have a variety of techniques to gather the data you need to make advertising and product decisions.
There are some important things to consider when choosing to work with a marketing research provider:
Define Your Requirements – What results and information are you seeking (i.e. what do you want to know?) What techniques do you need to implement? Are you looking for information on competitors or do you want to run consumer tests on a new product? Find a firm that has experience in the areas you need and in your industry.
Cost – Find out exactly what it will cost to achieve your goals and what you can expect for the price. More expensive does not always mean better. Tell potential vendors your budget and have them present a plan that matches your numbers. Also, ask how and when you will be billed? Per activity or monthly?
Reputation-A vendor's reputation is the key to a successful relationship. Ask for references, check the Better Business Bureau and do a Google search for opinions about the vendor. When you are checking references, ask about the company's responsiveness, their reports (were they clear and timely) and their capabilities in doing the research. Compose questions that are important for your company, and make notes of any potential problem areas that you find. Go back and discuss these problems with the vendor.
Customer Service- Will you have a dedicated account representative? Are they experienced with your industry? Who do you take problems to?
The American Marketing Association recently unveiled this definition of marketing:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Whether you are managing customer loyalty or looking to introduce a new product, marketing research is an essential component of your success. Informed business decisions can minimize risk and enhance productivity. Market research can help you communicate better and identify new opportunities. If you want market research vendors to compete for your business, click here. For additional information, you can visit our market research wiki.
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