Before performing market research and analysis, it is crucial to understand some critical concepts in this field. Market segmentation can be defined as dividing the target market into smaller components based on demographic data, similarities of interests, and psychographic information. The advantages of this method include better advertising message, personalized digital targeting, better response from the clients, and more significant profit. It is usually done to reach the customers better and sell more products. The Product Life Cycle is described as an entire process concerning product circulation on the market from its introduction and distribution to maturation and death. This notion requires companies to fully comprehend each phase to know what strategies to take and what to expect. For example, it shows that in the initial stages, prices should be kept high until the market is saturated with the product, while the later phases may require cost reduction. The concept of marketing is understood as all steps of market exploration as well as promotion and selling of the product.
The next term that needs to be explained is niche market, which is a specific market that offers products for a narrow range of clients. On the other hand, the mass market is a vast undifferentiated sector where various products can be found for consumers of different backgrounds (Chron Contributor, 2020). One of the main benefits of selling goods on such a substantial scale is that sales are usually high since advertising reaches millions (Chron Contributor, 2020). Furthermore, such products constantly have a high demand among the general public; hence, there is no significant decline in profit which may justify expensive marketing campaigns (Chron Contributor, 2020). Lastly, unique selling points (USPs) are defined as special features that differentiate the product from similar ones in rivals. In fact, it is critical to articulate USPs when running the marketing campaign because otherwise, the consumers will not be able to distinguish from the similar items available from other providers.
Types of Market Research
Market research can be divided into two major types: primary and secondary. In the former, one searches for the required data using focus groups or surveys. The latter is built upon the evaluation of the results from other studies. Examples of secondary research are surveys, interviews, experiments, market observations, and the analysis of the rivals.
Secondary Market Research
Five types of secondary market research are known: surveys, interviews, experiments, observations, and competitors’ assessments. Surveys containing various open and close-ended questions can be distributed both as hard copies and electronically. Interviews allow for a deeper understanding of a participant’s experience since more details can be asked directly from a respondent. Experiments intend to test a theory using a specific methodology. Observational market research enables the evaluation of the participants during the fieldwork. Finally, the analysis of competitors is done by extracting data from governmental databases or other studies.
The Marketing Strategy
Marketing strategy comprises five main steps that enable the proper introduction of the product on the market. The first phase requires the company to determine the needs and demands of its customers. Secondly, using that information, the firm should build its advertisement to demonstrate that the offered product possesses all the necessary qualities for consumers. The third step is to conduct the SWOT analysis to identify the company’s strengths, weaknesses, opportunities, and threats with the particular product and selected marketing campaign. Fourthly, the marketing plan can be established after monitoring and evaluating people’s responses. Lastly, the organizations may consider concentrating on those customers that bring the most profit.
Mistakes to Avoid in Marketing
- Guesswork about whether the customers will like the product.
- Ignoring rivals.
- Taking the product for granted.
- Relying on a small number of clients.
- Making price the only competitive feature.
Apart from following the proposed steps in marketing strategy, some mistakes should be avoided by businesses. First of all, it is essential to eliminate guessing about what would clients think; instead, the research must be conducted to obtain definitive answers from consumers. Furthermore, it is never recommended to ignore the existence of competitors or rely on a small cohort of consumers. Companies cannot assume their product’s success will last forever because rivals may always introduce something better. Lastly, one should never forget about unique selling points, which cannot only be the low price.
Chron Contributor (2020) What is the meaning of mass market?