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In a modern competitive landscape, building a standout brand is no small feat.
An effective brand strategy calls for something beyond creativity; it needs to be based on real understanding of the market, the consumer and the competition.
That’s where the role of market research becomes invaluable. The effectiveness of your brand’s proposition, positioning and targeting may depend entirely on the extent and quality of your market insight.
Let’s dive in to see how market research underpins the brand and why it’s crucial for success.
What is Market Research?
Market research is typically undertaken by a market research agency that will gather, analyse, and interpret data relating to your target audience, competitors, and industry trends.
You can use the insight the agency provides to make informed decisions that shape your brand’s identity, messaging, and offerings. From quantitative surveys and qualitative focus groups to competitor analyses and social listening, market research encompasses a range of tools and techniques to uncover actionable insights.
How Market Research Informs Brand Strategy
1. Defining Your Target Audience
A clear understanding of your audience is the foundation of any brand strategy. Market research helps you:
- Identify demographics: Age, gender, location, income level, and more.
- Understand psychographics: Values, interests, and behaviours.
- Track buying habits: Preferred products, spending patterns, and decision-making processes.
For example, a brand targeting Gen Z will need a vastly different approach than one targeting baby boomers. Market research ensures your strategy resonates with the right audience.
2. Refining Brand Proposition and Positioning
The brand proposition is a marketing and communications-led encapsulation of what the brand is actually offering consumers and should be designed to reflect their core needs, attitudes and behaviours.
The brand’s positioning is crafted to convey its position in the market relative to its peers. The positioning’s purpose is to enable the brand to create an identity that is both distinct, relevant and appealing in the minds of consumers.
Market research plays a fundamental part in the development of the brand’s proposition and positioning by uncovering:
- pain points your audience is trying to overcome or their needs;
- unique selling propositions – what makes your brand different;
- brand purpose
- competitor gaps – opportunities for your brand to differentiate itself in the market.
For example, Dove’s “Real Beauty” campaign repositioned it by tapping into an unmet emotional need for authenticity in beauty advertising. This was informed by deep consumer insight.
3. Crafting Compelling Messaging
Your messaging should speak directly to your audience’s aspirations, values, and needs. Market research enables you to:
- Identify the language and tone that best resonates with your audience
- Spot cultural nuances, thereby ensuring your message is relevant and inclusive.
- Test campaign concepts, by validating ideas before a full-scale rollout.
For instance, Nike’s “Just Do It” slogan remains iconic because it taps into universal emotions of determination and achievement—insights gleaned from through research.
4. Optimising Consumer Targeting
Market research allows brands to segment their audience effectively, creating tailored strategies for each group. This may involve:
- Behavioural segmentation: Targeting based on actions like purchase history or online activity.
- Geographic segmentation: Focusing on specific regions or local preferences.
- Interest-based targeting: Aligning with hobbies or lifestyle choices.
This precision targeting not only enhances ROI but also strengthens brand loyalty by delivering personalised experiences.
The Role of Market Research within a Competitive Landscape
Stay Ahead of Trends
Consumer tastes change fast. Market research keeps your brand up to speed with emerging trends, whether it’s sustainability, digital transformation, or new product categories. Being ahead means that your brand stays relevant and competitive.
Mitigating Risks
Launching new products or entering new markets is always risky. Research reduces uncertainty by validating assumptions and recognising potential pitfalls before launch.
Benchmark Performance
It’s important to understand where your brand stands in relation to other competitors. Survey based market research can be used to create brand performance benchmarks that can be used to subsequently track brand performance and areas for improvement.
Practical Steps to Leverage Market Research
- Establish Concrete Objectives: First of all, define what you want to learn and why.
- Mix Methods: Combine qualitative and quantitative to achieve a complete perspective.
- Analyse and Act: Turning insights into actionable strategies, tracking their performance over time.
- Iterate and Adapt: The dynamics of the marketplace continue to change. Market research is an ongoing process.
Final thoughts …
Market research forms the backbone of any brand strategy that has ever emerged as a winner. It allows you to uncover insights into your audience, competitors, and industry trends that enable you to position your brand in the best way possible for your target market.
At Brandspeak, we specialise in helping businesses use market research as an effective driver in crafting compelling brand strategies. Let us get your brand positioned for lasting success.
