The Most Important Part of Market Research


By Prisha Gupta

Your company has created a fantastic product or service. It has features that will blow the minds of your audience away, and you know that your product is in demand!

Now what lies ahead is building a marketing strategy for your brand, which will mean identifying who your consumer is. Your target market is the intended audience or consumer who will buy your product. It is essential to know what your consumer wants out of a product, and if they have enough information to make the purchase.

Market research will help you define the target audience for your product and help you tailor your marketing strategy to what appeals to the target market. Defining your target market plays an essential part in the success and failure of your product.

For example, did you know that when Mercedez Benz entered the
Chinese market, they thought they should shorten their name to something that
will fit in with the Chinese dialect? That’s how they settled on the name
‘Bensi,’ which was close enough to their real name and easy to remember.

This is where target audience research comes in. ‘Bensi’ means
‘rush to die’ in Chinese. Though Mercedes was quick to rebrand their name,
their mistake could have been avoided if they had simply done the right market
research.

You can define your target market after bringing into consideration the following factors:

  • The use of your brand
  • Consumers who have bought your brand or service
  • Potential consumers who will benefit from the use of brand or service

Why Market Segmentation?

Market segmentation will help you divide the target market into
approachable groups so that you can understand your target audience better.

Demographic Segmentation

Appealing to the target audience means appealing to the
consumer’s mindset. There are many factors involved in this — starting from
gender, age, city, and ethnicity, which fall into one collective category,
‘demographic.’

The demographics of the target audience are at the base of
defining what forms the target audience.

Demographic segmentation has seen almost all the industries, including beauty and automobiles. ‘Wet n Wild’ – A beauty brand which is relatively new in the drugstore category, has gained a lot of popularity over time because of its brilliant marketing campaigns that are tailored to their target audience. The relatively low prices of the makeup products in Wet n Wild, coupled with their social media marketing campaign where they have looped in social media influencers, has made them widely popular.

Socioeconomic Segmentation

When you take into consideration attributes related to household
income, level of education, and occupation which are directly related to the
economic status of your target audience, these characteristics will help you understand
your target audiences’ lifestyle better.

The socioeconomic status of the audience will help define their
buying habits, their preferences in terms of pricing, and their consciousness
about brands.

For example, sportswear brand Adidas and celebrity Kanye West
have collaborated on a pair of sneakers, Air Yeezy. The sneakers came at a
relatively high price, and have limited availability. Yeezy had become a
lifestyle statement for the target audience of affluent, mobile millennials
instead of just another pair of sneakers.

Psychographic Segmentation

What are your target audience’s hopes and dreams?

Getting into the psyche of your consumer forms an essential
basis of your marketing strategy, ergo, it is essential to your target audience
profile.

If you can successfully analyze your consumer’s behavior and
divide your consumers into subgroups based on shared psychological
characteristics, you can understand your consumer’s motivations better. The
consumer’s unique psychological profile, which takes into account the person’s
personality, quirks, and temperament, greatly influences the behavior of
consumers.  

For example, a marketer is trying to sell locally sourced green
tea, which also helps in staying fit. She needs to know who her target audience
is. Though demographics, socioeconomics, and geography will play a huge
deciding factor in defining her target audience, psychographic segmentation can
help define the profile better.

The marketer will need to understand if the target audience is
interested in staying fit or in the anti-oxidant properties of green tea that
have anti-ageing benefits. She can then highlight the features for the advertising
campaign accordingly.

Brand Affinity/Product Usage

Brand affinity is about consumers who exhibit an emotional
connection to the brand. It helps marketers realize if customers are willing to
stick with a brand, given the freedom of choice. Consumers who exhibit brand
affinity or actual product usage are segmented based on their behavior. This
makes brand affinity and product usage one of the strongest categories to use
when developing market segments.

Geographical Segmentation

Dividing consumers geographically can have many benefits,
including understanding your consumer’s political beliefs and religious
affiliations and what is available to them for transport or shopping.

An interesting example of geographical segmentation is
McDonald’s regional specialties.

McDonald’s is widely popular for its Big Mac burger, made from beef. For Indians they have a customized version of the Big Mac — the Chicken Maharaja Mac, which is made from chicken patties. McDonald’s in Japan has special burgers like Black Squid Ink burger and Teriyaki burger.  

Market segmentation helps you understand your customer in the best possible manner. The right market research agency will help you simplify market segmentation and enables you to design your marketing campaign so you can provide your customers with a personalized consumer experience.   

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Prisha Gupta drives content marketing initiatives at GroCurv, India’s first B2B services procurement platform. She develops content on sales, marketing, and HR topics to help SMEs for the most part. She also loves doing content that decodes and discusses strategies that have worked for successful brands providing learning opportunities for her readers. With her busy schedule, reading and yoga keeps her grounded and traveling keeps her motivated.



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