Conducting a market research analysis can provide organizations with an advantage over their competitors. This type of analysis allows them to identify opportunities for growth and can inform them on how to best prepare for future challenges. The market research process involves collecting data and leveraging insights about trends within the industry and consumer habits to inform future marketing strategies.
Once the information has been gathered, companies can identify gaps to better serve their customers and prospects, better position their company’s value proposition to resonate with target audiences, and to better stay competitive.
Benefits of Market Research Analysis
Businesses across every industry can benefit from analyzing the market because it provides insight into where their sector is headed and what their target buyers want down the road. Studying the market provides organizations with a competitive advantage because they are able to identify opportunities for innovation or investment that they may not have otherwise been aware of.
For example, a clothing store can use market data to identify when a new fashion trend is emerging or to find out when customers start purchasing summer clothes. With this actionable insight, the retailer can develop targeting campaigns to specifically market products that best fill that need.
In addition to informing targeting strategies, market analysis can also identify potential challenges that may be on the horizon, such as a shift in consumer preference or increase regulation, which allows companies to pivot their strategies accordingly to minimize any negative effects and better resonate with prospective consumers.
How to Conduct a Market Research Analysis
There are four steps to conducting a successful market analysis, many of which include having access to the right data to reveal key market insights.
1. DEFINE THE PURPOSE OF THE ANALYSIS
Before starting a market analysis, organizations should define what they are hoping to accomplish from the research. Are they trying to gain a competitive advantage? Is the organization interested in planning for the future and designing a strategy to best capitalize on near- to long-term trends?
Once a company establishes the purpose of their research, they can then determine how they will gather the information to guide their business objectives.
Latest Insights on Location Intelligence
Sign up to get the latest from Gravy Analytics straight to your inbox.
2. COLLECT OR RETRIEVE NECESSARY DATA
Being data-driven is one of the most important aspects of staying competitive, and the same can be said for enabling effective market research. First, businesses should determine what type of data will be the most useful.
For example, companies hoping to better understand consumer behavior and habits should consider leveraging location data. Location intelligence provides insight into where people travel in the real world, and these insights help companies create roadmaps of consumer buying habits.
Once an organization has determined what data will best serve their analysis, they can then decide if they will collect their own data or work with an agency or data provider to receive what they need to best understand the current and future market. To expedite data collection, it is best to work with a data provider who can provide high-quality, timely data.
3. ANALYZE THE DATA
Once the data is collected, organizations will have to cleanse and sift through the datasets, removing any unnecessary or irrelevant data. While businesses can do this themselves, they may lack the internal resources to do so efficiently. For many, it’s easier to work with a data company that is able to provide the cleansed datasets they need.
Once the data has been parsed, businesses should look for overarching trends, such as if consumers are changing where they choose to shop or what types of businesses they visit the most.
4. LEVERAGE THE DATA TO PIVOT MARKETING STRATEGIES
The final step for conducting a market analysis involves drawing conclusions from the data and using them to inform marketing campaigns and help meet business objectives, such as increasing sales, staying ahead of the competition, or expanding audience reach.
Location intelligence can provide organizations with actionable insights about consumers and how they prefer to be engaged. For example, some location intelligence companies put anonymous mobile advertising device identifiers into segments separated by interest or purchase history. Once their clients receive these audience lists, they can identify which groups are likely to make a purchase and prioritize targeting them through ad campaigns.
Once a company designs a campaign to target those specific audiences, it’s important to benchmark its performance from previous marketing efforts to help inform future strategy.
Interested in learning more about how location intelligence can strengthen your market research and increase customer engagement? Read our datasheet detailing the benefits of location data.
6 Benefits of Location Data
Download the datasheet to uncover more ways marketers can maximize location intelligence to benefit their business.