What market research can you do to create a unique selling proposition?

Overview

Conducting market research is the process of gathering and analyzing information about a target market, including its needs, preferences, and behavior.

This information is used to create a unique selling proposition (USP), which is a statement that describes what makes a product or service different from its competitors.

Market research is important because it helps businesses understand their customers and competitors, identify opportunities and threats in the market, and make informed decisions about their products and services.

Two well-known global brands that have used market research to create their USP are Coca-Cola and Apple.

• Coca-Cola: Through market research, Coca-Cola discovered that consumers were looking for a refreshing and enjoyable beverage. This led to the creation of their USP, “The Real Thing”, which emphasized the taste and quality of their product.
• Apple: Apple conducted market research to understand what consumers wanted in a computer. This led to the creation of their USP, “Think Different”, which emphasized the company’s innovative and creative approach to technology.

How to

The process of conducting market research for creating a USP involves several roles and responsibilities:

• Identifying the target market: This involves defining the characteristics of the ideal customer, such as age, gender, income, and location.
• Gathering data: This involves collecting information about the target market through surveys, focus groups, interviews, and other methods.
• Analyzing data: This involves organizing and interpreting the data to identify patterns, trends, and insights about the target market.
• Developing a USP: This involves using the insights from the market research to create a statement that describes what makes the product or service unique and different from its competitors.

Best practices

Here are six best practices for conducting market research:

1. Define the research objectives: Clearly define what you want to achieve through the research.
2. Use multiple methods: Use a combination of methods to gather data, such as surveys, focus groups, and interviews.
3. Ensure sample representativeness: Make sure the sample of respondents is representative of the target market.
4. Ask the right questions: Use open-ended questions that allow respondents to provide detailed and honest answers.
5. Keep it simple: Use simple and clear language to avoid confusion and bias.
6. Use a reliable and valid measurement tool: Use a tool that has been tested and validated to ensure the accuracy and reliability of the data.

Examples

Here are two potential examples of how small businesses can conduct market research to create a USP:

• A local bakery can conduct surveys and focus groups to gather information about their target market’s preferences for baked goods. They can use this information to create a USP that emphasizes the quality and freshness of their products.
• A small clothing store can conduct interviews and online research to gather information about their target market’s fashion preferences and trends. They can use this information to create a USP that emphasizes their unique and trendy clothing options.