6 Reasons You Should Invest In Market Research

Market research will allow you to properly execute your marketing strategy. Here are 6 reasons why you should invest in market research:

  1. Identify your potential market.
    1. Researching about your potential or existing market enables you to identify your consumer or understand what product would bring the most value to your target audience. It may also allow you to determine the limitations or flaws within your business, product or service, particularly within the lens of the market.
  2. Determine your price.
    1. Through research of the market, you’ll figure out the best price for your product(s), or more realistically, your profit margin. You need to manage both market and profit expectations when evaluating your pricing strategy.
  3. Minimize risk.
    1. Minimizing risks and make informed market decisions using your market research. This will allow you to create objective go-to-market strategies.
  4. Market to your target audience.
    1. Marketing research will allow you to promote your business or communicate with your customers more effectively and efficiently. When building your marketing strategy you should leverage the market and demographic information of your target audience to increase your in-market effectiveness. Communicated and engage with your target audience through surveys, online questionnaires, focus groups, mystery shops and even internal phone/personal interviews.
  5. Discover opportunities.
    1. Business is dynamic and market research can help a company realize and assess opportunities within the market place. By analyzing data and statistics gathered from market research, you can forecast or anticipate future market needs. First-to-market or a competitive advantage may be a result and a profitable one at that.
  6. In researching your market, you’ll overcome challenges by getting reliable answers. The answers shall serve as your key to create the right solutions for these challenges.

Market research can also provide you with the following information:

  1. Market share and trends
  2. The decision-making and sales process of your target audience
  3. Competitor profiling
  4. Customer service ratings (compared to your competition)
  5. Marketing and sales tactics that can retain prospects
  6. The most effective (or memorable) marketing tactics

Whether you are starting a small business or looking to expand your existing operation, you should utilize market research to help you create an actionable marketing and business strategy.

The 4 P’s & C’s of Marketing

This blog post takes me back to my university days. Expanding on the P’s with the C’s of marketing and branding was a great addition to my marketing strategy skill set. The 4 P’s of marketing – Product, Price, Place and Promotion – are well known, however the addition of the 4 C’s – Consumers, Costs, Convenience and Communication –  can help to build a more robust marketing strategy.

4marketingPsandCs

Products & Consumers 

Consumers have needs and wants which products (or services) should provide. Learning what a target audience wants or finds value in will help you to develop a product that will be successful in the market place. Conduct a market place gap analysis to see if there is an opportunity for your product.

Price & Cost 

The price must be justified by the market place and by your profitability margin. You need to consider the indirect costs that your target audience must pay to use your product or service. If you rely strictly on price to compete you are vulnerable to competition – in the long term.

Place & Convenience

If it’s not convenient it doesn’t matter where you place the product. This depends on your target market’s preference and can range from the internet to a catalogue or a phone call.

Promotion & Communication

Promotion can be considered to be more of a marketing campaign or medium, where as communication can require a value exchange between the buyer and seller. It’s about providing value. Content marketing or an innocent can usually align promotion and communication as long as it provides value. Be creative and you can make your marketing engaging.

Strategizing Your Promotional Marketing Mix

In business or marketing strategy, you have probably heard of the “4 P’s” of marketing (Product, Price, Place and Promotion). The promotional aspect can also be described as the “Promotional Mix” and it determines what actions to take to reach your target audience. If you find yourself asking “How do I know what works?” the answer begins with your target audience. This blog post will help you to strategize your marketing plan and I’ve even included estimated costs.

Marketing Tactics

  1. Business Name

Your business and brand name is crucial to your success. ($1,000 – $8,000)

  1. Logo

Your logo should represent your company and your brand. This is a must-have and quality does count. An affordable solution is 99Designs. If design and creativity isn’t your strong suit then you should invest in an engaging logo. ($500 – $10,000)

  1. Slogan

This may be optional, but this short description can explain your unique value proposition to the market. ($500 – $5,000)

  1. Website

Developing a website can be almost free (e.g. from WordPress or another free online template) or a substantial investment. It all depends on your ability to build a website, develop a strategy, content, etc. It will cost less if you can write it yourself and supply the photography, but if you don’t want to build a website, you should hire someone who does. You can also save money by being involved in the planning and content selection. ($5,000 – $50,000)

  1. Content Marketing Schedule

Unless you’re ready to draft a content marketing plan you should probably enlist some help. Providing valuable content will help move your targets through a track-able process.

  1. Email Marketing

This will help you provide value and disseminate you content. Free templates can be set up with any number of online eNewsletter programs. ($50  – $20,000)

  1. Social Media

Set up your social media profiles (Facebook, Twitter, LinkedIn, Google+, YouTube, Instagram, Pinterest, etc.) and ensure they are consistent with your branding and messaging. You should be able to do this yourself, but make sure you’re on the right networks – correctly.

  1. Blogging

Writing a blog is free and easy to do once you’ve planned your content strategy. Creating a blog will help you keep your website content fresh.

  1. Signage

Signage will let the market place know that you exist and help people easily you’re your location(s). ($500 – $50,000+)

  1. Directories and Classified Ads

Whether online or in a newspaper, these should be a cost-effective method to list your company in it’s target industry. People searching for specific items can locate your ad by category. ($25+/each)

  1. Community Newsletters

If your goal is to reach a specific community, than community papers may provide you with a cost-effective tactic, however readership varies. ($50 – $500/ad/size)

  1. Outdoor Advertising

This tactic will increase your local presence. Outdoor advertising covers a variety of media, including lawn signs, bus benches (0 – $200/month), shopping mall signs, billboards and building sponsorships. ($5,000 – $50,000+)

  1. Videos

Videos are an extremely important, especially within your content marketing strategy. They can be used in a variety of mediums including both digital and traditional marketing tactics.  ($2,000  – $50,000)

  1. Search Engine Optimization (and Outsourced Content Creation)

Your company and it’s digital assets need to rank highly. Enlisting the services of an expert will save you time, which will allow you to get back to business. ($1,000 – $5,000/month)

  1. Radio

This brand awareness tactic will increase your presence with commuter traffic, especially in rural communities. ($3,000 – $10,000/month)

  1. Television (TV)

Advertising on local (or national) television can greatly increase your brand awareness and increase recognition. (Estimate $1,000 – $10,000/month + production – you need a solid 30 second spot)

  1. Newspapers

Newspaper (local or national) can help build local, immediate attention and over a period of time can increase brand visibility. ($2,000+/month – depending on ad size)

  1. Promotional Products

These are branded items that you send (or give) away to gain (and retain) attention. In Calgary I recommend Level2, however there any many choices in every city.

  1. Direct Mail

Targeted, local direct mail can be effective if there is a valuable offer or create that stands out. This can also be applied to eNewsletters or digital marketing. ($0.5 – $3/ household is consistent depending on the creative you are mailing)

  1. Digital

There are many new online advertising channels to consider. Start with Search Engine Marketing (SEM), which is essentially your online search traffic that should relate to your company, product or service. Then look at display advertising, which is the online version of billboard advertising, layered in with retargeted and behaviour ads. Next think about social media advertising (YouTube, Facebook, Twitter, LinkedIn). If you’re confused by the above let me know and I can help. While marketing budgets may vary they are also affordable and track-able. ($25/day+)

  1. Customer Relationship Management (CRM)

A CRM system, emails and phone calls will help you manage current relationships, increase referrals and attract new prospects to be clients. If you don’t have a sales process or strategy you will not generate new business. ($25/month+)

  1. Recommendations, Success Stories and Celebrity Endorsements

Some of these are free or earned and others are not – however all will help you increase credibility within your market place. Always be aware of the risk.

Build Your Promotional Marketing Mix

Choose your promotional marketing tactic based on your target audience. This includes the volume, type, and geography of the target customers you are trying to reach. Depending on your marketing strategy (or objectives), choose the method that is the most direct and provides the most value. Your target prospects need to engage with your market for it to be a success. Forecast and plan your marketing budgets to ensure that you allow enough budget to carry your campaign throughout completion. Don’t be afraid to take a chance. Just be sure to measure the results of your marketing.

How & When to Start Marketing Your Product: 4 Tips

“How and when should I start marketing?” Many companies and new entrepreneurs can easily get hung up on that question. Whether it refers to determining when to start marketing your product or service to customers, or figuring out the correct market in which to launch, the following 4 steps will help guide your through the process.

  1. Product Knowledge

You need to frame the product/technology as it relates to your proposed product timeline and evaluate what stage it currently resides. Doing so defines the timing of when you should go to market and who would be the ideal target within each of the product’s stages.

If you aren’t sure where your product stands, consider the following points:

  • Are the primary features still being developed?
  • Are there enough features to let someone test and give meaningful feedback?
  • Are you ready to present your product and find a first beta tester or even customer?
  • Where does your product reside in the product life cycle? Each of these stages varies in length and directly affects how you market and what your timing is.
    • 1. Development
    • 2. Introduction
    • 3. Growth
    • 4. Maturity
    • 5. Decline

Product knowledge will assist you with your marketing messaging as well as increasing your competitiveness within the market place.

  1. Marketing Strategy

Your marketing strategy should plan out the approach you will take to reach potential prospects. Define your target audience and know the best marketing medium, channel and budget for each persona.

Your marketing strategy needs to include the following elements:

  • Product & Consumer
  • Price & Costs
  • Place & Convenience
  • Promotion & Communication

4marketingPsandCs

Also consider these points when building your marketing plan:

  • Who your product or service will serve
  • Where to reach these people
  • How to reach these people
  • How to best do the above given the resources you have
  1. Competitive Landscape

To be successful and truly stand out to your target audience, it is crucial to have a deeper understanding of the competitive landscape. Figure out who the top competitors are, along with their value proposition and core messaging. Can your product or service thrive in the market place? All products, services and companies have competitors so be sure you conduct due diligence. I recommend starting with some web searches then building from there.

  1. Messaging

After you have developed your marketing strategy and understand the positioning of your product in it’s competitive landscape, the final component is to define the messaging. Your messaging is the compilation of the first 3 steps, but positioned in a compelling manner. It must be creative, catchy, engaging, memorable and most of all convert-able (leading to new business). If you are to be successfully noticed by a prospect, your messaging must be timely, relevant, and personalized.

Provide value and think about your unique value proposition. Consider the use of comparative language. Are you faster, bigger, sleeker, or cheaper? Your product knowledge, market strategy and competitive knowledge should help you to create messaging that will engage your target audience.

The 4 steps I’ve outlined will help you determine when or how you should market your new product or concept. It should begin developing an actionable marketing strategy that will allow you to under stand your product/service and it’s target audience. This also includes conducting market and competitor research as well as creating engaging messaging. These tips will allow you to properly plan your strategy and execution, which will be the key to your success.