How Effective Research Offers Great Profitability

The first step towards developing an efficient strategy is research. With the right data and competent professionals, your marketing efforts can generate high profitability or return on investment (ROI) for you.[i]

The importance of effective research can be understood by looking into why you do marketing research in the first place; it is to understand your customer base and competition better, and hence make informed choices while composing a strategy.[ii]

It will not matter how big your marketing budget is or how good the implementation is if the research stage is scurried and lacking in quality.

To do effective research you must understand all the parameters of your campaign. Keep the business goals, end consumer and the competition at the center. Then consider other details such as your market size, data collection and analysis methodologies, etc.[iii]

It is essential that you remain unbiased throughout the process, or else your results could be skewed.[iv]

And don’t rush the process. If your demographic changes from one country to another, chances are your research results will change as well. So don’t assume that the same strategy will work everywhere.[v]

Always remember that marketing research is not only carried out before your products’ launch. But the data you gather during the selling phase and after it also adds valuable information to your research results.

Nokia was a tech giant throughout the 1990-2000s. It was the company that introduced the first-ever camera phone. But it failed to understand the change in its consumer trends as new technology became available and that played an immense role in its demise.

On the other hand, when the LEGO Company realized that its primary users were boys, they conducted a four-year study to understand how they could create more girl-friendly toys. After the launch of their new toys in 2012 the company saw more than 15% annual growth in the next few years.

Other examples where effective research generates a high ROI include Apple; they use online surveys to ask people what changes they want and then use that data to guide the new upgrades.

And another case study is Starbucks, which is always introducing new drinks themed around festivals and holidays according to what their target audience wants.

Small and big companies such as Samsung, Nivea and many others send out regular survey questionnaires to their subscribers as part of their research. This helps guide their new product lines and marketing strategies. [vi]

In Conclusion:

Marketing research increases your ROI by giving your strategy a direction to generate the most effective results.

It provides actionable numbers you can use to plan out the campaigns and create a loyal customer base for your product or services.

Strategic Marketing professionals are experienced in carrying out detailed research keeping all the components in mind. If you want to upgrade your knowledge of these contemporary methods, then enrol in our Masters’ in Strategic Marketing program and earn a UK masters’ degree.

 

[i] https://www.adverity.com/data-driven-marketing/#:~:text=Data%2Ddriven%20marketing%20is%20the,return%20on%20investment%20(ROI).

[ii] https://www.imsmarketing.ie/market-research/why-is-market-research-so-important/#:~:text=Market%20Research%20can%20significantly%20help,on%20your%20customer%20and%20competitors.&text=Similarly%20understanding%20the%20wider%20market,new%20opportunities%20for%20your%20business.

[iii] https://coschedule.com/blog/marketing-research-strategies

[iv] http://worldcomp-proceedings.com/proc/p2014/EEE2150.pdf

[v] https://courses.lumenlearning.com/boundless-marketing/chapter/global-marketing-mix/

[vi] https://prezi.com/p/kvwfhfcjut-h/how-does-samsung-use-market-research/#:~:text=Since%20Samsung%20is%20in%20an,like%20on%20a%20new%20product.