Varieties of Market Analysis: Strategies & Examples

Right here at GWI we publish a gentle stream of blogs, reviews, and different assets that dig deep into particular market analysis subjects.

However what in regards to the people who’d recognize a extra common overview of market analysis that explains the massive image? Don’t they deserve some love too?

In fact they do. That’s why we’ve created this overview information specializing in varieties of market analysis and examples. With so many market analysis firms to select from, having a strong common understanding of how this sector works is crucial for any model or enterprise that desires to select the appropriate market analysis accomplice.

So with that in thoughts, let’s begin on the very starting and get clear on…

Market analysis definition

On the danger of stating the marginally apparent, market analysis is the gathering and analyzing of knowledge on customers, rivals, distributors, and markets. As such it’s not fairly the identical as shopper analysis, however there’s vital overlap.

Market analysis issues as a result of it might probably aid you take the guesswork out of getting via to audiences. By learning customers and gathering data on their likes, dislikes, and so forth, manufacturers could make evidence-based selections as a substitute of counting on intuition or expertise. 

If a enterprise desires to know – actually know – what kind of services or products customers wish to purchase, together with the place, when, and the way these services and products ought to be marketed, it simply is smart to ask the potential viewers. 

With out the knowledge that market analysis brings, a enterprise is principally hoping for one of the best. And whereas we salute their optimism, that’s not precisely a dependable technique for fulfillment.

What are the varieties of market analysis?

Main analysis 

Main analysis is a kind of market analysis you both conduct your self or rent somebody to do in your behalf.

A traditional instance of major analysis entails going on to a supply – usually prospects or potential prospects in your goal market – to ask questions and collect details about a services or products. Interviewing strategies embody in-person, on-line surveys, telephone calls, and focus teams.

The massive benefit of major analysis is that it’s straight targeted in your targets, so the end result might be conclusive, detailed insights – significantly into buyer views – making it the gold normal.

The disadvantages are it may be time-consuming and doubtlessly pricey, plus there’s a danger of survey bias creeping in, within the sense that analysis samples is probably not consultant of the broader group.

Secondary analysis 

Main market analysis means you acquire the information your online business wants, whereas the varieties of market analysis referred to as secondary market analysis use data that’s already been gathered for different functions however can nonetheless be invaluable. Examples embody printed market research, white papers, analyst reviews, buyer emails, and buyer surveys/suggestions.

For a lot of small companies with restricted budgets, secondary market analysis is their first alternative as a result of it’s simpler to accumulate and way more inexpensive than major analysis.

Secondary analysis can nonetheless reply particular enterprise questions, however with limitations. The info collected from that viewers could not match your focused viewers precisely, leading to skewed outcomes. 

An enormous good thing about secondary market analysis helps lay the groundwork and get you prepared to hold out major market analysis by ensuring you’re targeted on what issues most.

Qualitative analysis

Qualitative analysis is among the two basic varieties of market analysis. Qualitative analysis is about individuals and their opinions. Usually carried out by asking questions both one-on-one or in teams, qualitative analysis will help you outline issues and study prospects’ opinions, values, and beliefs.

Traditional examples of qualitative analysis are long-answer questions like “Why do you suppose this product is best than aggressive merchandise? Why do you suppose it’s not?”, or “How would you enhance this new service to make it extra interesting?”

As a result of qualitative analysis typically entails smaller pattern sizes than its shut cousin quantitative analysis, it provides you an anecdotal overview of your topic, moderately than extremely detailed data that may assist predict future efficiency.

Qualitative analysis is especially helpful in the event you’re creating a brand new product, service, web site or advert marketing campaign and wish to get some suggestions earlier than you commit a big price range to it.

Quantitative analysis

If qualitative analysis is all about opinions, quantitative analysis is all about numbers, utilizing math to uncover insights about your viewers. 

Typical quantitative analysis questions are issues like, “What’s the market measurement for this product?” or “How lengthy are guests staying on this web site?”. Clearly the solutions to each might be numerical.

Quantitative analysis normally entails questionnaires. Respondents are requested to finish the survey, which entrepreneurs use to know shopper wants, and create methods and advertising plans.

Importantly, as a result of quantitative analysis is math-based, it’s statistically legitimate, which suggests you’re in an excellent place to make use of it to foretell the longer term path of your online business.

Client analysis 

As its title implies, shopper analysis gathers details about customers’ life, behaviors, wants and preferences, normally in relation to a specific services or products. It may possibly embody each quantitative and qualitative research.

Examples of shopper analysis in motion embody discovering methods to enhance shopper notion of a product, or creating purchaser personas and market segments, which aid you efficiently market your product to various kinds of prospects.

Understanding shopper developments, pushed by shopper analysis, helps companies perceive buyer psychology and create detailed buying conduct profiles. The end result helps manufacturers enhance their services and products by making them extra customer-centric, growing buyer satisfaction, and boosting backside line within the course of.

Product analysis 

Product analysis provides a brand new product (or certainly service, we don’t decide) its finest probability of success, or helps an current product enhance or improve market share.

It’s widespread sense: by discovering out what customers need and adjusting your providing accordingly, you acquire a aggressive edge. It may be the distinction between a product being a roaring success or an abject failure.

Examples of product analysis embody discovering methods to develop items with the next worth, or figuring out precisely the place innovation effort ought to be targeted. 

Product analysis goes hand-in-hand with different strands of market analysis, serving to you make knowledgeable selections about what customers need, and what you possibly can provide them.

Model analysis  

Model analysis is the method of gathering suggestions out of your present, potential, and even previous prospects to know how your model is perceived by the market.

It covers issues like model consciousness, model perceptions, buyer advocacy, promoting effectiveness, buy channels, viewers profiling, and whether or not or not the model is a prime consideration for customers.

The end result helps take the guesswork out of your messaging and model technique. Like all varieties of market analysis, it provides advertising leaders the information they should make higher selections based mostly on reality moderately than opinion or instinct.

Market analysis strategies 

To date we’ve reviewed varied various kinds of market analysis, now let’s take a look at market analysis strategies, in different phrases the sensible methods you possibly can uncover these all-important insights.

Client analysis platform 

A shopper analysis platform like GWI is a brilliant solution to discover on-demand market analysis insights in seconds.

In a world of fluid markets and altering attitudes, an in depth understanding of your customers, developed utilizing the appropriate analysis platform, allows you to cease guessing and begin understanding.

In addition to offering certainty, shopper analysis platforms massively speed up velocity to perception. Bought a query? Simply soar in your shopper analysis platform and discover the reply – job achieved.

The flexibility to mine information for solutions like that is empowering – immediately you’re within the driving seat with a world of potentialities forward of you. In comparison with the obvious different – commissioning third celebration analysis that might take weeks to reach – the appropriate shopper analysis platform is principally a magic wand.

Admittedly we’re biased, however GWI delivers all this and extra. Take our platform for a fast spin and see for your self.

And the draw back of utilizing a shopper analysis platform? Effectively, no information set, nonetheless recent or thorough, can reply each query. When you want actually area of interest insights then your finest guess is customized market analysis, the place you possibly can ask any query you want, tailor-made to your precise wants.

Face-to-face interviews 

Regardless of the rise in recognition of on-line surveys, face-to-face survey interviewing – utilizing cell gadgets and even the traditional paper survey – remains to be a preferred information assortment technique.

By way of benefits, face-to-face interviews assist with correct screening, within the sense the interviewee can’t simply give deceptive solutions about, say, their age. The interviewer may also make a remark of feelings and non-verbal cues. 

However, face-to-face interviews will be pricey, whereas the standard of knowledge you get again usually depends upon the flexibility of the interviewer. Additionally, the dimensions of the pattern is proscribed to the dimensions of your interviewing employees, the realm through which the interviews are carried out, and the variety of certified respondents inside that space.

Social listening 

Social listening is a robust resolution for manufacturers who wish to maintain an ear to the bottom, gathering unfiltered ideas and opinions from customers who’re posting on social media. 

Many social listening instruments retailer information for as much as a few years, nice for pattern evaluation that should evaluate present and previous conversations.

Social listening isn’t restricted to textual content. Pictures, movies, and emojis usually assist us higher perceive what customers are pondering, saying, and doing higher than extra conventional analysis strategies. 

Maybe the largest draw back is there are not any ensures with social listening, and also you by no means know what you’ll (or received’t) discover. It can be tough to gauge sentiment precisely if the language used is open to misinterpretation, for instance if a social media person describes one thing as “sick”.

There’s additionally a possible downside round what individuals say vs. what they really do. Tweeting in regards to the fitness center is an efficient deal simpler than truly going. The broader downside – and this may occasionally shock you – is that not each single factor individuals write on social media is essentially true, which suggests social listening can simply ship unreliable outcomes.

Public area information 

Public area information comes from suppose tanks and authorities statistics or analysis facilities just like the UK’s Nationwide Workplace for Statistics or america Census Bureau and the Nationwide Institute of Statistical Sciences. Different sources are issues like analysis journals, information media, and educational materials.

Its benefits for market analysis are it’s low cost (and even free), fast to entry, and simply out there. Public area datasets will be big, so doubtlessly very wealthy.

On the flip facet, the information will be outdated, it definitely isn’t unique to you, and the gathering methodology can depart a lot to be desired. However used rigorously, public area information could be a helpful supply of secondary market analysis.

Phone interviews 

You already know the drill – you get a name from a researcher who asks you questions on a specific subject and needs to listen to your opinions. Some even pay or provide different rewards on your time.

Phone surveys are nice for reaching area of interest teams of customers inside a particular geographic space or linked to a specific model, or who aren’t very energetic in on-line channels. They’re not well-suited for gathering information from broad inhabitants teams, merely due to the time and labor concerned.

Easy methods to use market analysis 

Information isn’t an finish in itself; as a substitute it’s a springboard to make different stuff occur. So when you’ve drawn conclusions out of your analysis, it’s time to think about what you’ll truly do based mostly in your findings.

Whereas it’s unattainable for us to present a definitive listing (each use case is totally different), listed here are some strategies to get you began.

Leverage it. Take into consideration methods to increase the use – and worth – of analysis information and insights, for instance by utilizing analysis to help enterprise objectives and features, like gross sales, market share or product design.

Combine it. Develop the worth of your analysis information by integrating it with different information sources, inside and exterior. Integrating information like this will broaden your perspective and aid you draw deeper insights for extra assured decision-making.

Justify it. Enlist colleagues from areas that’ll profit from the insights that analysis supplies – that may very well be product administration, product improvement, customer support, advertising, gross sales or many others – and construct a enterprise case for utilizing analysis.

How to decide on the appropriate kind of market analysis 

Broadly talking, choosing the proper analysis technique depends upon understanding the kind of information you should acquire. To dig into concepts and opinions, select qualitative; to do some testing, it’s quantitative you need.

There are additionally a bunch of sensible issues, not least value. If a specific method sounds nice however prices the earth then clearly it’s not ultimate for any model on a price range.

Then there’s how you propose to make use of the precise analysis, your stage of experience with analysis information, whether or not you want entry to historic information or only a snapshot of at present, and so forth.

The purpose is, totally different strategies go well with totally different conditions. When selecting, you’ll wish to think about what you wish to obtain, what information you’ll want, the professionals and cons of every technique, the prices of conducting the analysis, and the price of analyzing the outcomes. 

Market analysis examples

Unbiased company Vivid/Shift used GWI shopper insights to form a high-impact go-to-market technique for his or her sustainable furnishings shopper, producing £41K in income within the first month. Right here’s how they made the magic occur.