Business Studies – 1.3.1 Enterprise and entrepreneurship | e-Consult

Market research is fundamental to developing an effective marketing strategy. It provides insights into the target market, their needs, preferences, and buying habits. This information allows the boutique owner to tailor their marketing efforts to resonate with potential customers.

Here's how market research informs the marketing strategy and examples of information to gather:

• Target Market Identification: Research helps define the ideal customer (age, income, lifestyle, fashion preferences). This allows for focused marketing. Example: Surveys, social media analytics, competitor analysis can reveal the dominant age group and style preferences of customers in the area.
• Product/Service Development: Understanding customer needs helps determine what products to stock. Example: If research shows a demand for sustainable clothing, the boutique should prioritize eco-friendly brands.
• Pricing Strategy: Research reveals what customers are willing to pay. Example: Competitor pricing analysis and price sensitivity surveys can inform pricing decisions.
• Promotion Channels: Research identifies where the target market spends their time. Example: If the target market is active on Instagram, the boutique should focus on Instagram marketing.
• Marketing Message: Research helps craft a message that resonates with the target market. Example: Understanding customer values (e.g., ethical sourcing) allows for a marketing message that highlights these values.

Types of information to gather include:

• Customer Surveys: Directly asking customers about their preferences.
• Competitor Analysis: Examining competitor's marketing strategies and customer base.
• Focus Groups: Gathering feedback from a small group of potential customers.
• Social Media Analytics: Analyzing social media data to understand customer demographics and interests.
• Local Demographics Data: Using census data to understand the population of the local area.