Are you considering launching a new product or service but uncertain about its market demand? Maybe you plan to expand your business into new territories but are apprehensive about unknown competition. Or, you might be striving to increase your annual revenue and wondering, “Are my customers truly satisfied?” If these questions and challenges resonate with you, market research is the solution!
The American Marketing Association describes market research as a link between consumers, customers and the public to marketers, facilitated through information. This information empowers you to make informed, data-driven decisions that can help mitigate personal biases when addressing six essential types of questions about your customers, business, competitors and the overall market:
WHO: Who are your customers? Who are your competitors? Who is involved in your market value chain? Who are the emerging players or potential entrants in our market?
WHAT: What do your customers desire? What are the key factors that influence our customers’ purchasing decisions? What are your strengths and weaknesses? What sets your competitors apart? What external factors influence your industry?
HOW: How do customers perceive your brand? How do potential customers prefer to receive their products? How are competitors creating value? How is your industry evolving?
WHEN: When is the optimal time for customer communication? When should new products be launched? When do competitors typically launch new products or promotional campaigns? When do market fluctuations usually occur in our industry (e.g., seasonal changes)?
WHERE: Where are your customers? Where are areas I can expand into? Where do your competitors have the most influence? Where are the new market opportunities or unexplored niches?
WHY: This is perhaps the most crucial question. Understanding why helps you grasp the motivations, needs and beliefs of people. It allows you to delve deeper into the reasons behind all other queries.
At Babcox Media, we frequently undertake market research efforts to help answer these questions for our internal strategies and assist our readers in accomplishing their goals. Our BodyShop Business 2023 Profile is a prime example, offering a wealth of insights that help businesses understand their competitive positioning and identify potential areas for improvement (along with giving us insights on what type of content might resonate with collision shops). This research covers a wide range of topics, some of which include training and advertising expenditure.
These marketing spend insights are interesting when looking at other research and information sources, such as the U.S. Small Business Administration (SBA), which recommends that small businesses should spend 7%-8% of their gross revenue on marketing. However, successful B2C companies allocate around 14%-17% of their gross revenue, and successful B2B companies spend around 8%-12% of their gross revenue on marketing. Suppose a small business sees the combination of these two data sources. In that case, it may be enough encouragement for the business to refine its marketing efforts to gain a competitive advantage.
To stay on this marketing topic for a moment longer, perhaps after spending more on promoting your business, you would like to know if it was money well spent. We conduct research like this all the time at Babcox to help our clients understand what value those ad dollars have yielded. One such case involved a well-known brand conducting a year-over-year survey to assess brand awareness and sentiment pre- and post-Babcox advertising efforts. Results showed their awareness increased by 5%, and positive brand sentiment increased by 6% — a sizeable year-over-year increase when considering it can be a bit tougher for large brands to increase already high brand awareness and perception.
Unlock the full potential of your business with Babcox Media’s tailored approach to market research and strategic solutions. Our expertise empowers you to understand your audience, outpace competitors, and navigate the ever-evolving market landscape. Partner with Babcox Media to transform challenges into opportunities, and steer your business towards sustained growth and success. Contact David Ramos, Market Research Analyst, for more information.
David Ramos, MBA
Market Research Analyst for Babcox Media
Contact David at [email protected]
Yahoo / U.S. Small Business Association – https://finance.yahoo.com/news/sink-swim-smbs-overcome-digital-121000896.html https://www.business2community.com/digital-marketing/how-much-should-i-expect-to-spend-on-digital-marketing-02335032