Generally speaking, the market study is carried out at the start of the project . It mainly consists of collecting information concerning a market . Marketing research , for its part, focuses on the promotion of a product or service . Despite this, the two conceptions can be confused, or can depend on each other.
What is the point of doing market research; a marketing study? What is the difference between these two concepts? Which one to choose to obtain the best result for your business?
What is market research?
Market research is a process which consists of collecting and then analyzing information on a market. The goal is to identify and then define its different characteristics. Market research begins its approach in different forms.
It can approach the study on a general level by identifying the broad outlines of an existing market: demand, competition, etc. She can also conduct the study from a commercial project angle by calculating the viability of a new product and the potential of the future market . It can still base its study on the geostrategic potential of a point of sale .
Market research is a process that requires significant time and financial resources . Indeed, it involves both quantitative and qualitative .
By these terms we understand: an analysis of financial and demographic data, a competitive analysis, a collection of information on consumers (interview, online questionnaires, telephone interview, etc.), and an analysis of market shares.
The results of market studies are used by business creators for their business plan , but also by already established companies, to evaluate their investments .
What is a marketing study?
Marketing research is a set of actions aimed at studying and influencing the needs and behaviors of consumers with the aim of aligning offers and their needs . It consists of collecting and interpreting real information in order to anticipate market developments . The aim is to develop a company's sales by proposing a relevant offer . The marketing study aims to implement an approach with the objective of finding and keeping customers.
Marketing studies can be translated in the traditional form : phoning, door to door, leaflets in mailboxes, etc. It can take on a more current appearance with the Digital Marketing : inboud marketing, email campaign, etc. Surveys, polls and analyses, whether quantitative or qualitative, make it possible to obtain precise information.
To develop a marketing study, the starting point is understanding the problem . It’s about formalizing your objective. This helps guide the direction of the study, for example: price acceptability, customer knowledge, etc. Then, the marketing study identifies the profile of the panel to be studied : prospects, socio-demographic characteristics, etc.
Marketing research is undertaken before, but especially after, the launch of a product or service to understand the position of a company on the market .
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What differences are there between the two approaches?
The debate regarding the proximity of these two terms remains unresolved. For many businesses, they are similar. However, their differentiation is essential.
The difference is first of all chronological . Market research is carried out before marketing research. The market study is upstream of a commercial project , while the marketing study serves as support in a dynamic of perpetual monitoring .
The second difference lies in their purposes . The data collected during a market study is used to gauge the chance of success of a project and the potential of a market . While the results obtained during a marketing study are used to increase turnover.
The third difference lies in the means implemented. Market research is a fairly complex approach , which requires significant resources. Between interview and geographical analysis, the capital involved is quite substantial . When it comes to marketing research, the approaches are more targeted . As a result, the resources required are more measured .
Marketing strategy: Market research or marketing study?
Market research is an excellent source of information for aligning supply with demand . Concretely, a market study allows you to:
- Verify the number, solvency, and accessibility of the customer;
- Adapt products according to needs;
- Adapt prices taking into account the competition;
- Choose the distribution method;
- Estimate turnover.
Thus, market research reduces uncertainties as well as risks in relation to launching a project. Moreover, 70% of bankruptcies of new companies are due to the absence of a market study according to APCE or the Agency for Business Creation. However, it does not guarantee the success of a project. Indeed, the reliability of this method is sometimes called into question due to certain results which contradict the statistics.
The marketing study, for its part, aims to optimize activities by creating value. It is a more complete solution which allows:
- Capacity optimization;
- Definition of the target;
- The positioning of the offer in relation to the target;
- Implementation of an appropriate action plan;
- Monitoring and coordination of actions.
Faced with the constant increase in the number of companies, almost 18% in 2019 according to INSEE , marketing research has become an essential tool. Compared to the competition, it allows you to implement tactics to stand out. It gives the possibility of properly structuring a marketing strategy.
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