Market and competitor research

How do you check whether the market is growing or shrinking through market research?

Market size is not limited to just numbers. Even if the overall size increases, the price range or customer base that our company sells may decrease, or conversely, there may be a niche that grows rapidly within a stagnant market. Market research begins with deciding on what criteria to divide the market. The market must be divided by criteria that are relevant to the company's decisions, such as customer type, purpose, price range, and region, so that changes in demand can be used as information for decision making.

By comparing data of different natures, such as public statistics, industry data, internal company sales records, and customer survey results, you can reduce the illusion that occurs when looking at only one data.

How do you research customer needs and purchasing processes?

The moment a customer chooses a product is just one point in a long process. A choice is made based on the customer's experience throughout the entire process of feeling a need, finding information, comparing alternatives, purchasing, returning, or leaving. Marketing research explains that this flow should be viewed as a customer journey and that the contact points of the pre-purchase, purchase, and post-purchase stages should be examined together (Lemon, Verhoef, 2016).

Korea Research Institute of Business & Branding uses a combination of interviews, surveys, and usage data analysis to find out where customers hesitate and what makes them switch to other options. If a company deals with corporate customers, the person making the purchase decision and the person actually using the product may be different, so the needs of both parties are checked separately.

To what extent does competitive analysis look at competing companies and alternative products and services?

If you narrow your competitors to just companies selling the same products, it's easy to miss the real threats. If customers solve the same problem in different ways, those methods are also competitors. Korea Research Institute of Business & Branding includes alternative products and services that customers can choose from, along with direct competitors, and compares what value each provides to customers and under what conditions.

Comparisons focus on the differences customers perceive rather than feature lists. Gathering the reasons why customers leave our product and switch to a competitor's product, or conversely, why they switch from using a competitor's product, reveals where our competitive advantage really lies. The comparison results collected in this way are also used as the basis for product planning and sales proposals.

Why are distribution and transaction structures included in market research?

Even if you make a good product, there are cases where the path to reach customers is blocked and results are not achieved. You can develop a pricing strategy or channel strategy by knowing who plays what role at each distribution stage, how much profit they take, and which party is affected when trading conditions change. Deal structure research is especially useful for companies that primarily engage in business-to-business transactions.

How do you review new markets and business opportunities?

The more attractive a new market looks, the calmer the review should be. institute looks at not only the size and growth potential of the market, but also the difference our company can make to customers in that market, the cost of entry, and the response of already established competitors. The review results are Strategy and business development advicecan lead to a market entry strategy.

How do you distinguish between assumptions and facts in market research results?

Not all numbers on a report have the same weight. Figures that are directly confirmed and figures estimated based on certain assumptions have different uses. ISO 20252, an international standard for market, opinion and social research, also addresses transparency in the research process and reporting of results as a requirement.

What should I decide before entrusting me with market research and competitive analysis?

The scope of your research becomes clearer if you decide first what decisions you will use the results of your research for. The customers and data you need to look at vary depending on whether you want to launch a new product, adjust prices, or change sales targets. Your company's existing sales records and customer inquiries are also a good starting point. Please also remember that if your customer research includes personal information, legal standards regarding its collection and use also apply.

Market and competitor research Frequently asked questions