In general, the market research is carried out at the beginning of the project. It consists mainly of gathering information about a market. Marketing research , on the other hand, focuses on the promotion of a product or service. Despite this, the two conceptions can merge, 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 get the best result for your business?
What is market research?
Market research is an approach that consists of collecting and analyzing information about a market. The goal is to identify and then identify the different characteristics of it. Market research begins its approach in different forms.
It can approach the study on a general level by identifying the main lines of an existing market: demand, competition, etc. It 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 also base its study on the geostrategic potential of a point of sale.
Market research is an approach that requires time and significant economic resources . Indeed, it involves both quantitative and qualitative analysis.
Its terms include: analysis of financial and demographic data, competitive analysis, collection of consumer information (interview, online questionnaires, telephone interview, etc.), and analysis of market share.
The results of market research are used by business creators for their business plan, but also by 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 in order to align offers and their needs. It consists of collecting and interpreting real information in order to anticipate market developments. The purpose is to develop the sales of a company by proposing a relevant offer. Marketing research aims to implement an approach with the objective of finding and keeping customers.
Marketing studies can be translated into the traditional form : phoning, door-to-door, flyers in mailboxes, etc. It can take a more current aspect with digital marketing: inboud marketing , emailing campaign, etc. Surveys, polls and analyses, whether quantitative or qualitative, provide accurate information.
To develop a marketing study, the starting point is to understand the problem. It is a question of formalizing its 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 characters, etc.
Marketing research is undertaken before, but especially after the launch of a product or service to know the position of a company in the market.
What are the differences between the two approaches?
The debate concerning the proximity of these two terms remains unresolved. For many companies, they are similar. However, their differentiation is essential.
The difference is primarily chronological. The market research is done before the marketing study. Market research is upstream of a commercial project, while marketing research serves as a support in a perpetual monitoring dynamic.
The second difference is 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 is in the means used. Market research is a rather complex approach, which requires heavy resources. Between interview and geographical analysis, the capital committed is quite substantial. In terms of marketing research, the approaches are more targeted. As a result, the resources required are more measured.
Marketing strategy: Market research or marketing research?
Market research is an excellent source of intelligence to align supply with demand. In concrete terms, a market study makes it possible to:
- Check the number, creditworthiness, and accessibility of the customer;
- Adapt products according to needs;
- Adjust prices taking into account competition;
- Choose the distribution method;
- Estimate turnover.
Thus, market research reduces uncertainties and risks in relation to the launch of 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 questioned because of certain results that have contradicted the statistics.
Marketing study, on the other hand, aims to optimize activities by creating value. It is a more complete solution that allows:
- Capacity optimization;
- The definition of the target;
- The positioning of the offer in relation to the target;
- The implementation of an adequate action plan;
- Monitoring and coordination of actions.
Faced with the constant increase in the number of companies nearly 18% in 2019 according to INSEE, the marketing study has become an essential tool. Compared to the competition, it allows you to set up a tactic to stand out. It gives the opportunity to structure a marketing strategy.
Whatever the case, despite their difference, the two concepts are linked.