Generally speaking, market research is conducted at the beginning of a project . It primarily involves gathering information about a market . Marketing research, on the other hand, focuses on promoting a product or service . Despite this difference, the two approaches can overlap or be interdependent.
What is the purpose of conducting market research and marketing ? What is the difference between these two concepts? Which one should you choose to achieve the best results for your business?
What is market research?
Market research is a process that involves collecting and analyzing information a market. The goal is to identify and then define its various characteristics. Market research begins its approach in different ways.
She can approach the study from a general perspective by identifying the main features of an existing market: demand, competition, etc. She can also conduct the study from a business project angle by calculating the viability of a new product and the potential of the future market . She can also base her 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 .
These terms include: an analysis of financial and demographic data, a competitive analysis, the collection of information on consumers (interviews, online questionnaires, telephone interviews, etc.), and an analysis of market shares.
The results of market research are useful to business creators for their business plan , but also to already established companies, to evaluate their investments .
What is a marketing study?
Marketing research is a set of actions aimed at studying and influencing consumer needs and behaviors in order to align offerings with those needs . It involves collecting and interpreting real-world data to anticipate market trends . The ultimate goal is to increase a company's sales by offering relevant products and services . Marketing research aims to implement an approach designed to find and retain customers.
Marketing research can take traditional forms : cold calling, door-to-door sales, leaflets in mailboxes, etc. It can also take on a more modern form with digital marketing : inbound marketing, email campaigns , etc. Surveys, polls, and analyses, whether quantitative or qualitative, allow for the collection of precise information .
To develop a marketing study, the starting point is understanding the problem . This involves formalizing its objective. This helps guide the study's direction, for example: price acceptability, customer knowledge, etc. Next, the marketing study identifies the profile of the panel to be studied : prospects, sociodemographic characteristics, etc.
Marketing research is undertaken before, but especially after the launch of a product or service to understand a company's position in the market .
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What are the differences between the two approaches?
The debate regarding the similarity of these two terms remains open. For many companies, they are similar. However, their differentiation is essential.
The difference is primarily chronological . Market research is conducted before marketing research. Market research is carried out upstream of a commercial project , while marketing research serves as a support in a continuous monitoring process .
The second difference lies in their purpose . The data collected during market research is used to assess the likelihood of a project's success and the potential of a market . Whereas the results obtained during marketing research are used to increase revenue.
The third difference lies in the resources employed. Market research is a fairly complex approach that requires significant resources. Between interviews and geographical analysis, the capital invested is substantial . Marketing research, on the other hand, uses more targeted . Consequently, the resources required are more limited .
Marketing strategy: Market research or marketing study?
Market research is an excellent source of information for aligning supply with demand . Specifically, market research allows you to:
- Check the number, creditworthiness, and accessibility of the client;
- Adapt the products according to the needs;
- Adjust prices taking competition into account;
- Choose the distribution method;
- Estimate the revenue.
Thus, market research reduces uncertainties and risks associated with launching a project. In fact, 70% of new business failures are due to the absence of market research, according to APCE ( the French Agency for Business Creation). However, it is not a guarantee of a project's success. Indeed, the reliability of this method is sometimes questioned due to certain results that have contradicted the statistics.
Marketing research, on the other hand, aims to optimize activities by creating value. It's a more comprehensive solution that allows for:
- Capacity optimization;
- Defining the target;
- The positioning of the offer in relation to the target audience;
- The implementation of an appropriate action plan;
- Monitoring and coordinating actions.
Faced with the steady increase in the number of businesses—nearly 18% in 2019 according to INSEE —market research has become an essential tool. Compared to the competition, it allows businesses to implement a strategy to stand out. It also provides the opportunity to structure a well-defined marketing strategy .
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