In 2019, L'Oréal felt the need to upgrade one of its top makeup products – L'Oréal Paris Alliance Perfect foundation. Both the formula and the product communication were outdated – multiple ingredients had emerged on the market along with competitive products made from those ingredients.These new ingredients and products were overwhelming consumers. After implementing new formulas, the competitor brands would advertise their ingredients as the best on the market, providing almost magical results. So the team at L'Oréal decided to research their consumers’ expectations instead of simply crafting a new formula on their own. What are the different types of market research that can help you stay ahead of the curve with your marketing strategy?
Market research (also called marketing research) is the action or activity of gathering information about market needs and preferences. This helps companies understand their target market — how the audience feels and behaves. Market research can help you solve problems and reduce the risk of making crucial business decisions. Here’s the type of market research you should know.
Brand research helps create and manage a company’s brand or identity. Brand research can be used at every stage in a business’s lifecycle, from creation to new product launches and re-branding. Here’s some of examples :
This type of market research is designed to evaluate whether your advertising messages are reaching the right people and delivering the desired results. Campaign effectiveness research depends on which stage of the campaign you use it. Successful campaign effectiveness research can help you sell more and reduce customer acquisition costs.
Competitive analysis allows you to assess your competitor’s strengths and weaknesses in the marketplace, providing you with fuel to drive a competitive advantage. Whether you’re just getting started, moving into a new market, or doing a health check of your business, a competitive analysis will be invaluable. A researcher will typically choose a few of your main competitors and analyze their marketing strategy, customer perceptions, revenue or sales volume, and so on.Secondary sources such as articles, references, and advertising are excellent sources of competitive information; however, primary research, such as mystery shopping and focus groups, can offer valuable information on customer service and current consumer opinions.
Here are some of the characteristics you should understand through consumer insights research:
• Purchase habits
• Interests, hobbies, passions
• Personal and professional information
• How they consume media and advertising
Consumer insights research does more than tell you about who your customers are and what they do. This type of market research can help you anticipate consumer needs, spark innovation, personalize your marketing, solve business challenges, and more. Consumer insights research should be specific to your business about getting to know your customers and target market.
Customer satisfaction research is a type of market research that measures customers’ experiences with products or services, specifically looking at how those meet, exceed, or fail to live up to their expectations. a strong indicator of customer retention and overall business performance. Successful customer satisfaction research should help you understand what your customers like, dislike, and feel needs improvement. There are several ways to measure customer satisfaction, most commonly using surveys.
Customer segmentation studies aim to divide markets or customers into smaller groups or personas with similar characteristics to enable targeted marketing. Not every customer in your target market is the same. The more you understand each specific persona, the easier it is to focus on delivering personalized marketing, build loyal relations, price products effectively, and forecast how new products and services will perform in each segment.
A researcher will identify your current customers and collect data about them through various market research methods, such as surveys, database research, website analytics, interviews, and focus groups. The aim is to gather as much information as possible.
Those are some types of research that can be done, and of course, there are many benefits if we do and apply them. Certainly can trigger a marketing strategy.
If you want to know more about the other types of research or business strategies, you can join with Gear Up! Save your slot now!