Marketing professionals carry out the work of consumers, understanding how they behave and what they want to form an effective marketing strategy. On top of that, the importance of consumer insights is growing exponentially as consumers voice their opinion more than ever before. This article provides a brief overview of the importance of consumer insights and how they can be used to make decisions to increase profits.
What are Consumer Insights?
Consumer insights are factual information about the behavior of consumers and how they feel about certain products or brands. There are two types of insights: market insights and brand insights. These two kinds of information may be combined to form a hybrid type of insight called market/brand insight, which most marketers focus on and are familiar with.
Market insight refers to the general reactions and trends of consumers. For example, we can gain market insight by asking people how they feel about certain products or brands. This kind of information is important because it gives us an idea about how to alter our marketing strategy so that our product is appealing to the mass market.
Brand insight refers to people’s preferences and opinions on certain products or brands. For example, suppose a new study shows that 70% of Americans prefer Dove soap over Ivory soap. In that case, marketers can determine that the Ivory brand will soon be in jeopardy because there are suddenly more generalized preferences for Dove. While the first type of information is important to marketers, brand-specific information is essential because it gives us specific details that we can use to alter our marketing strategies based on the targeted consumer.
Importance of Consumer Insights
Consumer insights give marketers a great deal of insight into how certain products perform. Marketers can use this information to decide which products they should promote and how to execute their marketing campaigns. For example, it may be important for a brand to create a new advertising campaign to increase sales. Marketers can analyze the data and determine whether or not consumers are receptive to the new advertising material. It is also useful for marketers to decide where to allocate their budgets to maximize profits.
Another importance of insights is for companies to understand better where they should allocate their resources. For example, a company can determine that if they are going to invest in marketing their product in China, they should invest more in advertising than in other countries.
Companies can use the insights to develop effective marketing strategies by determining what audiences are most receptive to certain products. For example, a consumer insight can show that if a company is going to advertise its product on television, it should do so during children’s programming. Marketers can use this information to improve their campaigns and increase sales.
It is also useful for companies to gain this type of consumer insight because it gives marketers an idea about the demographic almost all consumers fall into and how they react to different brands. Insights are essential in planning effective marketing strategies that suit the wants and needs of consumers. Marketing managers should use these insights to make strategic decisions about what makes a product or brand appealing to people so that they know how to implement effective campaigns that will lead to higher profits.
Also, consumers are becoming much more outspoken about their preferences. With the help of marketing professionals, companies can get insight into the desires of consumers by conducting focus groups and surveys. Insights give marketers information about how certain products and brands perform to make accurate decisions about what marketing strategies to implement. The knowledge marketers can gain from these insights is invaluable because it allows them to successfully market their products and brands.
