A comprehensive market research allows you to use your resources to their maximum potential so that you reduce any possible losses. Learning more about this process and developing a sound strategy are becoming increasingly crucial for brands across all industry niches as a means of boosting their operations and improving returns. When you have a strong marketing strategy, you can be confident that you’re targeting the demographics that are more likely to be interested in your products, as well as bringing relevant content that will appeal to them.
However, when you actually get down to it, you’ll find that it’s more difficult that it seems to convey the information you want to transmit and that different markets come with different challenges. Here are some of the things you should take into account in order to see genuine results.
You cannot have a successful marketing strategy unless you are familiar with the cultural space where you’ll launch your products. Working with a market research and advisory agency can help you make your way easier through this fundamental step since there are several things you must be mindful of. Some of the values you should take into consideration include:
- Whether the culture leans more toward individualism or collectivism
- If people tend to remain reticent towards different ideas or behaviors that they consider improper or immoral
- If the society prefers hierarchies or looks to equalize power structures
- Are your customers more likely to go for instant gratification, or do they prefer to plan for the future?
- Does the culture value material rewards, success and achievement, or does it steer closer to the values of improving quality of life, fostering cooperation and promoting moderation?
For example, the United States is a low-context culture, meaning that communication is more upfront and straightforward, without considerable influence coming from other factors. That means that your marketing should be direct and aim to dismiss any possible uncertainties. Concise use of words helps as well. American shoppers are also more likely to prefer indulgence and instant gratification, as there are no strict social norms that promote delayed gratification.
US culture is more masculine than feminine, so it prefers success and material rewards. Regarding power distance and uncertainty avoidance, the data shows that Americans not only don’t support but don’t even expect rigid power structures and that they tend to have a higher tolerance for diversity. Companies are willing to collaborate, and employees often change jobs in the United States since the preference is for personal development over stability.
Psychographic data refers to the knowledge regarding an individual’s values, interests and life attitudes that help create their profile and determine what their motivation and interests are. This information is vital for businesses, as it allows them to have a better grasp on the intricacies governing buying decisions. Since customers are arguably the most critical part of keeping a company vital and growing, it’s imperative to have a comprehensive idea of the feelings and opinions of your clientele that can only be established through necessary research into customer experience.
For many, diversity and representation are the most crucial aspects. Data shows that only 7% of Asian Americans and 11% of African Americans feel represented by advertising. A quarter of Hispanic Americans say they like ads that reflect their cultures. A fifth of Asian Americans feel the same way. Among African Americans, 31% say they’re partial to ads that reflect black culture. Almost 50% of consumers believe that the most important thing for a brand is to maintain social responsibility by providing ethical work conditions, promoting sustainability and being aware of cultural and societal movements. Contributing to the local community and listening to feedback are also crucial considerations.
Consider their worries
Getting in-depth knowledge about a market doesn’t mean focusing solely on the positive aspects but being aware of the negatives as well. This data allows you to assess any potential barriers, as well as determine the feasibility of your projects. Research shows that the predominant worries for the American consumer are healthcare, the government and politics, gun violence and climate change. Health comes to the top of their aspirations, with 60% considering it a crucial aspect, ahead of happiness and financial security.
The financial perspectives must be part of this analysis as well. 39% of US shoppers say they consider their personal finances to be in good order, with 18% feeling tight on money and 9% admitting to struggling. If the demographics you want to advertise to are part of the groups that have a more difficult time with money, you must adjust prices to ensure your products can be purchased comfortably without the shoppers feeling like they have to give up on something else to afford it.
Looking at spending trends will also offer some indication of the engagement levels you can expect from your customers. In June 2023, data showed that growth had been approximately 5% year over year, compared to 9% at the same time during the previous year. Rather than showing that customers have decreased the frequency of their purchases, the data instead shows that the only change is that consumers are paying less for what they buy.
Inflation for goods is down 11% compared to 2022, and while the prices still record an upswing trend, it is much reduced in 2023. Depending on the category, expenditure pressures have intensified in spite of the genuine demand. Food, household equipment and furnishings are some of these categories. The high energy costs have caused trouble for consumers, leading to all households paying considerably more compared to two or three years ago.
In-person services have found resounding success in 2023. Restaurants and hotels have begun occupying a more significant portion of overall consumer spending, fueled by the shift from the slowdown recorded during the pandemic. The demand allowed service providers to sustain their businesses in spite of the challenges associated with higher food and energy costs. Airlines also gained a 20% increase in the first quarter of 2023 after climbing by almost 30% in 2022.
When looking to create a complete marketing strategy, you’ll have to consider many different factors and complete thorough analyses of environmental, social, financial and market factors.