Market research can be defined as a systematic process of collecting, analyzing and interpreting the information about a target market, competitors, consumers and the industry as a whole. It is the usually a foundation for any organization to understand the market dynamics, future growth prospects of the market before entering into the product ecosystem. The goal of market research is to provide management with relevant, accurate, reliable, valid and complete market information.
Types of Market Research:
Market research involves two types of data:
- Primary Research or Field Research: It is the data that the firm has collected directly or that has been collected by a person or business hired to conduct the research. Primary Information is further classified into an exploratory research and specific research. Exploratory research is open-ended, helps to define a specific problem and usually involves detailed, unstructured interviews or surveys conducted to identify the key dynamics and information related to the market under study.
- Secondary Research: This type of research is already compiled and organized in the form of magazines, newspapers, government or industry reports. Thus, it is known as a pre-existing public information and the data can be analyzed in new ways, but the information is available to a large number of people. Additionally, reviews and other explanatory statements on each of these publications are used to comprehend the study more lucidly.
Market Research Process:
Market Research Process is a set of six steps which defines the task to be efficient in conducting a market research study. These steps include:
- Problem definition: It involves discussion with the decision makers, interviews with industry experts and analysis of secondary data. Once the problem is defined, the research can be designed and conducted properly.
- Development of an approach to the problem: It includes analytical models, research questionnaires, identifying characteristics or factors that can influence the research design.
- Research Design Formulation: A research design acts as a blueprint for conducting the market research project. Its purpose is to design a study that will provide the data required for the decision making and determine the possible answers to the research questions. It involves the following steps
- Secondary data analysis
- Qualitative research
- Methods of collecting the quantitative data
- Definition of the information required
- Measurement and scaling procedures
- Questionnaire design
- Sampling process and sample size
- Plan of data analysis
- Field Work or Data Collection: It involves the staff or the field force that operates for personal interviewing in a home or computer-assisted personal interviewing, from an office by telephone and through the mail. The data collection errors can be minimized by proper selection, training, supervision, and evaluation of the field force.
- Data Preparation and Analysis: It includes transcription, editing, coding and verification of data. Univariate techniques are used for analyzing data when there is a single measurement of each element and multivariate techniques are used for analyzing the data when there are two or more measurements on each element.
- Report Preparation and Presentation: The entire project is documented in a written report which describes the approach, data collection and analysis procedures adopted. A presentation should be made to management using tables, figures, and graphs to enhance the clarity and impact.
Market Research Methods:
The market research methods mainly fall under six categories.
- Surveys: Surveys are among the easiest ways to collect information that comes in a form which becomes easy for the analysis. Therefore, these acts as the strongest weapons for the entrepreneurs. The different types of surveys include:
- Telephone surveys
- Surveys through mail
- Online surveys
- Paper surveys
- Interviews: Interviews refer to the mutual interaction with the industry experts to understand the key dynamics. It is the more difficult process while compared to the survey and a limited number of people can be interviewed which is an added disadvantage. The interviews can be done by phone, face to face and through an online source like Skype and some other social networking sites.
- Observation: It means that someone from the force field will observe and note down the different behaviors of the observed subject on the market.
- Trial and Error: This method is not mostly used but can give very useful information related to the market research. This can be applied to verify the obtained results from various sources including primary and secondary research. If the results are well and good you will continue otherwise you are supposed to make specific improvements.
- Focus Groups: It is one of the most expensive methods as it requires recording equipment and a special room for the implementation of the sessions. In order to have the better results, several sessions with different members need to be conducted.
- Asking Employees: Asking the employees especially in the sales team, the ones who are in the direct contact with customers on the daily basis. This can assist in obtaining the more qualitative and quantitative information on the market
Importance of Market Research Report:
Market research report can reveal the key aspects of the competitor’s products, services strategies, and target audience. Using this information within the campaigns can help to lead in the market and add value to the business. It is also useful in many ways such as understanding the market, the needs and trends of the firm, determine the consumer behavior, understanding the working of the market in combination with quantitative data so that the product can be promoted successfully.
How Market Research Reports helps business:
Businesses take the help of the market research for different reasons at different stages. The ways that are mentioned below describes how the businesses can use market research.
- To determine the feasibility of a new business: If the market research report specifies that the product has no demand in the market then the business cannot be succeeded.
- To identify and develop new markets.
- To examine the demand for the new products or features.
- To determine how, when and where should a product enter the market.
- To improve and innovate their business.
Reach us for Market Research Requirements:
We work on the below-mentioned requirements for our clients:
- Who are the target audience?
- What they want?
- What they need?
- Who are the competitors?
- Why will they need/want a product/service?
- What is the market environment?
- Which geographies have sales potential?
- What can you do to make your product/service more attractive?
Additionally, many other aspects are covered to provide the best possible business strategies and to sustain in a competitive environment.
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