Have you ever come across a certain product or service and wondered why is so expensive? Or why are certain features highlighted in a marketing campaign? Or how a product is targeted to a specific demographic? These decisions happen only after thorough market research. From collecting data to analyzing it to presenting the results, no decision is made spontaneously.
This is where a digital marketing company comes in. Companies hire a marketing agency to do the required research and present them with the findings.
So how does a digital agency conduct this research? Here are the
5 steps a digital marketing agency takes while doing market research for your brand.
- Defining the Problem or Opportunity
The main reason why a digital marketing firm does market research is to find a solution to an unanswered question that is creating a problem or to find a means to effectively seize an opportunity. Therefore, the digital agency, keeping in mind the purpose will define the problem or opportunity. For example, “At what price should we sell the new mobile phone?”, “Which features are to be highlighted in the next marketing campaign?”, “Which marketing strategy will work best for the upcoming festival season?”, and so on.
Having a clear idea of what you want to research will prevent the marketing agency from going off-track. Thus, it will keep the team focused.
- Establishing a Research Design
Now that you have decided on your problem/opportunity, you must choose the appropriate research design. A research design is a framework that the digital marketing consulting services follow to carry out the market research. This entails a detailed plan from how you will research what kind of data you will collect.
- Preparing Research Instrument
The online marketing agency will now prepare the research design instrument which will be used to collect data. The research instrument is determined by the nature of your data. This is categorized into three types They are:
- Explanatory Research: A digital agency will use this kind of research method when the hypothesis is ambiguous or is not well defined and your knowledge about it is also vague. Thus, this helps you have more detailed knowledge. It includes techniques like interviews, secondary research, and focus groups.
- Descriptive Research: This method is used for more in-depth data and a narrowed-down the topic, through a quantitative means. This method includes surveys.
- Casual Research: The marketing agency will use this method to determine the relationship between two variables using methods such as a field test or experiment.
- Collecting Data
Once the research design is set, marketing consultancy firms will collect the required data using the research design instruments. The web marketing firm will compile all the answers, observations, and so on into charts, graphs, tables, spreadsheets.
Toshiko’s Tip: Always remember to double or even triple check the data entered into the software while creating graphs, tables, and so on. It will prevent you from earning an earful if you make a mistake.
- Analyze the Collected Data
After the data is collected and turned into graphs and spreadsheets, it is time to analyze it. Keeping in mind the problem or opportunity, the marketing agency services draw conclusions. There are many methods a marketing agency uses for different kinds of industries. Thus, using the most appropriate method the agency makes conclusions.
Some of these data analysis methods include factor analysis, regression analysis, cluster analysis, and so on.
- Prepare Report to Communicate the Results
After the conclusions are drawn the online marketing agency will then create a report based on the data collected and the conclusions drawn. The report will contain an overview of the complete process of market research, appropriate graphs, tables, etc., and highlight the important aspects of the research. Suggestions, comparisons to current trends, and so on must also be reported.
A meeting is to be set between the marketing agency and the brand representatives where the report is presented. It is important that the question is answered and all issues are properly addressed.
We hope this article helped you understand the precision with which a digital marketing company does market research. People often assume that market research involves simply typing a few words on the search engines and reading a few search results. However, there is a very meticulous process that goes into making decisions for a brand. This is because these research findings influence even the smallest things like a 10% off sale on products or free shipping.
Toshiko’s Tip of the Day: Sometimes the data that is being collected might contain some sensitive information. Thus, the brand must hire a digital marketing agency after doing a thorough background check. Additionally, the digital marketing company also has the responsibility of handling the collected data with the utmost care and make sure that it is not leaked or misused.