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Difference between Market Research and Marketing Analytics

Difference between Market Research and Market Analytics

A company's future decisions are dependent on future insights. Gaining information regarding the future can be a lengthy process and confusing for even the experts. Further, it gets complicated because there are many ways to gather the data and describe it interchangeably. Market research and Market Analytics are two forms of collecting data. Both of these practices provide valuable insights, but they differ in their processes. Choosing one method over another can bring profound differences in the type and usage of the data. This article will provide a look through the key differences between both.

What is Market Analytics?

Market Analytics can be defined as a process of examining a particular market, industry, or sector using current and past facts. Using these facts, potential insight of the present is defined. The data is analyzed based on the market's size and its potential. That implies the number of competitors, trends affecting its sales, and the number of distribution channels plays a vital role in the Market analysis process. In this way, a business finds it easier to understand their products better and works through the areas that need improvement.

Steps to conduct Market Analysis

The marketing Analytics process provides data that plays an essential role in the growth of the business. Initially, marketers find the process very complicated, But the process may be a bit difficult, but the benefits of properly curated analytics are impeccable. The method of conducting marketing analysis begins with setting the goals and then moving through each step.
Here are the steps of conducting Market Analysis:

Data science and marketing analytics are complementary and require closely related skillsets. However, understanding both the domains' objectives and responsibilities will aid in understanding the concepts and their differences at a granular level.

Planning

Before beginning, set goals so that you are not analyzing just like that. It would help if you had a reasonable plan for the process. First, estimate the expected ROI and then frame the programs. Focus on all the decisions that can affect the result can bring improvement in the process.

Implementation

Once the planning is done, the entire analysis process depends on how well the plans are implemented. Make sure to select the right team and use proper tactics and technology to gather the data.

Creating a culture

Even big companies that already have analytical teams fail to compile the data and complete the analytical activities. So, it is essential to create a culture that can prompt the organization to use the data for boosting revenue.

Optimization

When all the marketing tactics are tested for gathering the data, you are aware of which marketing activities are effective. For example, trade shows are great for leads, but webinars move the leads effectively towards the funnel.

What is Market Research?

Market Research denotes a more specialized process by which the examination process of a specific market and its customers are performed. The purpose is to answer one or more questions about the market. Some market research processes may include market analysis as well, but the steps are customer-centric. Thus, it can be said that companies use market research to understand the likes and dislikes of the customers and how they can work towards attaining customer satisfaction.

Steps to Conduct Market Research

Due to the constant changes in business norms, marketing research is one of the necessary processes for any business. It is effective if better marketing strategies are implemented, and the right business decisions are made based on that data. Market Research is done at the start of any organization to determine the budgets and other aspects. It is not always expensive to conduct if the proper steps of the process are followed.

Here are the steps to conduct Market research in the right way:

Identify the problem or the opportunity

The market research process begins by identifying the problem or the purpose of the research. For researching and collecting the right set of data, you must know the meaning of research. This also helps to understand the process of obtaining that information. Develop such questions that define the problem or opportunity and show the way to solve it.

Planning the research

Once you know about all the causes of the problem and are already aware of the questions for which you are searching for a solution, now you build a complete research plan. It can include the ways or methods to follow to reach the solution or the potential opportunity. There are various methods to do it, like interviewing the customers. Often the feedback from the customer can lead to a solution. Another way of reaching the customer is by conducting a survey.

Collect the data

Most of the data collected in the Market research process is quantitative in the form of numbers. Typically, you can expect to get both types of data that are quantitative and qualitative, in the form of observation. In this process, the most essential thing that you must remain concerned about is that the data is valid and unbiased. While interviewing customers, include both open-ended and closed-ended questions.

Analysis of data

After collecting the data, the most crucial step is analyzing the data. It is essential to find out those trends that are different. Never analyze based on your assumption, as that can manipulate the research process. Sometimes, it becomes necessary to frame a report based on the data to decide the course of action.

Research becomes action

Analyzing the data ends the research process. Now comes the time to put the research conclusions into action. According to research, develop marketing strategies.

Conclusion

Hence, without considering the differences, companies must leverage both Market research and market analytics together. When businesses implement both these tools phase by phase, they can get maximum insights to grow the business as both of these research methods complement each other. While market research captures consumers' feedback and behaviour, market analytics provide online patterns that consumers often don't want to share or keep consolidated. Over the years, both methods have evolved but considering only one of them will limit its potential. The primary and secondary market research must go hand in hand. Then only businesses can have a comprehensive view of the market and make the right decisions to provide maximum satisfaction to the customers.