Entrepreneurs developing a product or service often create exciting strategies to advertise and introduce their new concept to the market.
Unfortunately, their marketing and advertising efforts are not always met with a successful outcome.
Before moving forward with spending advertising dollars on their new brand, product, or service, entrepreneurs or brands need to take a step back and properly evaluate the market or space they are trying to enter.
Market survey research assures the success of a new concept or established product, as it focuses on collecting feedback from a target audience to understand their demographics, expectations, and needs.
Most marketing and business managers rely on market surveys to collect information as a way of enhancing the market research process.
In this blog post, our market survey company answers the following questions:
- What is the definition of a market survey?
- How is market survey research conducted?
- What are the benefits of market survey research?
- What is the process of working with a market survey company?
Click each title above to navigate to that section, or continue scrolling to start the article from the beginning.
Market survey research involves analyzing a given market in order to gain insight into the buying potential and attributes of the target audience for a product or service.
The main goal and objective of a market survey are to collect data surrounding a target market such as competitor analysis, pricing trends, and customer expectations.
Whether you are leading a startup company or a tenured business, it is important to understand the needs of your customers.
- What do they want out of a product/service?
- How much would they pay for the product/service?
- Where would they most likely shop to find the product/service?
A market survey helps answer these questions directly from target consumers.
In turn, this information can help build an effective marketing and advertising strategy as well as contribute to enhancing the features of a new concept before entering the product or service into the market.
💡 The Key Takeaway: A market survey is like a crystal ball. It helps provide predictive analytics for a new concept, product, or service before it is introduced into a market. As a result, brands can make strategic changes to a concept before launch and are likely to see a higher return on investment.
The choice of methodology all comes down to what type of data or information you're hoping to uncover.
- Are you looking for more in-depth feedback? In this case, we'd recommend a qualitative market research study such as IDIs or focus groups. With this approach, you'll recruit a smaller sample of people but have the opportunity to have an hour (or longer) conversation with each individual.
- Are you looking for fast, measurable data? In this case, we'd recommend a quantitative market research study such as concept testing surveys. With this approach, you'll ask ~20 multiple choice questions with a larger sample of 400 or more depending on your audience. This can give you quick insights into perceptions, awareness, competitors, areas of opportunity, and more.
- Are you looking for both exploratory feedback and measurable data? In this case, we'd recommend a hybrid market research approach. Doing so allows you to conduct both qualitative and quantitative market research to make sure all your bases are covered.
Unsure what approach is best? A market survey company like Drive Research is the best resource for determining what market research methodology to use to receive the best results for your specific business objectives and challenges.
For a more in-depth analysis of potential options, read our blog post: 10 Types of Market Research to Consider in 2021.
💡 The Key Takeaway: There are many market research methodologies available when testing a new concept or entering a new market. The choice depends on your project goals. A focus group allows you to dive deep, ask why, and explore mindsets with great detail. While an online survey focuses on benchmarking, quantifiable statistics, and measurement.
A market survey of any kind offers a multitude of advantages for new or existing brands, products, and services.
Gain custom customer feedback
To start, and possibly the most important benefit, market survey research helps businesses gain critical feedback from their target customer.
This information offers marketing and business leaders factual-based data to guide and build an attractive advertising or sales strategy.
Doing so allows existing customers to remain happy and new customers to get on board.
Improve product and services based on data, not assumptions
If the objective of a market research study is to enhance an existing product or service, a market survey is a great way to meet this business goal.
A market survey company can analyze drivers of customer satisfaction and dissatisfaction with your current customer base to determine what is working and what can be improved about the product.
Once improvements have been made to the product or service, this also gives marketing managers the opportunity to update the website content or write a press release focusing on the “new and improved” model.
Learn more about Market Research for New Product Development.
Identify the best pricing structure
A market survey also provides key insight into the pricing structure of an inventive concept.
Specifically, market survey research answers whether a customer will spend a certain amount of money for the new concept and what the customer’s opinion is about competitor’s prices.
All in all, the data collected by surveying a target market allows organizations to make well-informed business decisions based on facts and evidence.
This dramatically reduces the risks involved with starting a new business venture.
💡 The Key Takeaway: There are several benefits to conducting market research for a new business venture. Gaining customer feedback, receiving actionable data-driven insights, and identifying the best pricing structure are just a few advantages you'll receive from the market research.
When working with a third-party market survey firm, the process for this type of market research study should be streamlined.
It often starts with the client providing insight into their project objectives and requirements.
For example, a business looking to hire a market survey firm may say:
“I am developing a new app for parents of newborns. This app will allow parents to track the growth, health, and progress of their new baby. I would like to gain in-depth feedback from parents who just had a child within the past 6 to 12 months to understand the likelihood and expectations for using this app.”
After learning about your objectives, the market research process often follows these steps.
1. Signed market research proposal
With this information, a market survey company will create a proposal outlining the project objectives, recommended research approach (online survey, phone interview, focus group, etc.), design, fieldwork, and level of reporting.
A market survey research proposal helps guide and set expectations for the final results.
2. Host a kickoff meeting
Once the proposal is approved by the client, a project kickoff meeting should be scheduled by the market survey company with the client and team.
This assures a definitive timeline is set and requirements for both parties are acknowledged.
3. Design, program, and field the market survey
From here, the market survey agency will begin designing and programming the study.
Fieldwork is then administered and overseen. After fieldwork is completed, a full analysis of the feedback is constructed and used to create a report of the findings for the client.
4. Receive an in-depth report of results
Depending on the level of reporting requested by the client, a market study research report may include an executive summary, recommendations, an infographic, customer personas, and an appendix of question-by-question results.
💡 The Key Takeaway: The process for conducting market research varies based on the choice of methodology. If you're looking for quick, cost-effective insights, an online survey is the way to go. However, if you have more of a budget and time to gather more in-depth feedback then we recommend conducting IDIs or focus groups.
Drive Research is a national market research company located in New York. Our team of certified research professionals partners with brands across the country to execute custom market research. Whether it is a concept testing survey or IDIs with key stakeholders, Drive Research can take the wheel on survey design, programing, recruiting, moderating, reporting, and more.
Interested in learning more about our market research services? Reach out through any of the four ways below.
- Message us on our website
- Email us at [email protected]
- Call us at 888-725-DATA
- Text us at 315-303-2040
A SUNY Cortland graduate, Emily has taken her passion for social and content marketing to Drive Research as the Marketing Coordinator. She has earned certificates for both Google Analytics and Google AdWords.
Learn more about Emily, here.