Market research: Why is it important when starting a new brand for digital marketing?
If you have been a marketer or an entrepreneur, you would certainly have heard the term “market research”. This is a practice that has existed for decades and has helped many businesses, when used the right way, reach the heights of success.
Every business that started decades ago and is still successful, has managed to do so by conducting market research. If you ask any entrepreneur, they will tell you that it is difficult to keep a business/product/service viable for a long period without knowing what the customer is thinking, what are their preferences, or your competitors’ analysis. And how do you find out this information? Market research!
In plain and simple terms, for a new business, to conduct market research means to look before leaping. For an existing business, conducting market research at regular intervals ensures that their information is up to date and they can adapt to the changes promptly.
But is market research still viable in the digital age?
Yes! Most definitely. Market research has become more viable in the digital age as many more people have access to the tools, thanks to the internet.
A change in the times has not affected the importance of market research in business. In the digital age and with the availability of artificial intelligence, however, it has become easier for companies to conduct market research as the target consumers can easily be reached through the internet. Additionally, many online market research tools are available to help marketers and market research analysts gather as much information as possible.
With digital marketing gaining more importance in recent times, a lot of marketers are conducting market research to obtain vital information to help them plan the right strategy to ensure their brand’s digital marketing success.
Let us take a look at the following advantages of market research to understand its importance in digital marketing:
1. Identifying Target Audience:
Digital marketing makes it easier for companies to reach a wider audience, but it is not advisable to advertise your brand to everyone online. This is because it becomes inefficient and time-consuming. With the proper and extensive market research, you can identify your target audience better, and gather and study necessary details (like demographic info, their preferences, expectations, and purchase behaviour) to help you formulate the right digital marketing campaigns.
2. Identify Digital Areas You Should Be Active In:
Market research allows companies to find out where their audience is active by finding out where they talk about their brand and how they react to the same. Around 42% of people around the world use social media in some form, so you can identify which social media or digital platforms your target audience usually uses to further streamline your marketing and advertising efforts.
3. Learn the Language And Behaviour Of Your Audience
When companies conduct market research through social media channels, they can learn the language of their audience. This allows marketers to create promotions to boost clicks and conversions, which is why many digital marketing agencies are now stepping into market research. Through social media, marketers can also understand consumer behaviour, which will help them understand trends and common activities which can be used in formulating digital marketing strategies.
4. Studying The Competition
Conducting market research can also help companies study their competitors and learn from them. Marketers can find out their current standing in the market compared to the competition as well as the reasons for why they are in that position. Through market research, companies can analyse the competitors’ behaviour and approach and what they are doing right or wrong in their digital marketing efforts, something that is very useful when the target audience is the same. The ease of access to social media and the fact that almost all companies post their ads, videos, and content online, this can be easily viewed and analysed by the competition. Marketers can learn from the mistakes and formulate their strategies accordingly.
5. Identify Influencers
With the rise in popularity of social media platforms, popular people like celebrities, bloggers, and other social media stars have become influencers. This means that they can influence their fanbase or followers to purchase from or support anyone they support. With market research, companies can identify key influencers who are most relevant to their brand, identify and relate with their target audience, and share their vision and goals. Influencers, although not as effective as they used to be, have a role to play in digital marketing and can be very effective if backed by proper market research.
Various types of market research, when used the right way, can boost and improve any marketing effort undertaken by companies. With market research, companies can surgically focus their efforts and get the best results, instead of just marketing without a clear objective based on assumptions. This holds more true for startups.