Definition

Market research is defined as the procedure of evaluating the feasibility of a new product or facility through research conduct directly with potential consumers. This method enables organizations or companies to discover their target market, collect and document opinions and make informed decisions.

It can be conducted straight by organizations or companies or outsourced to agencies experienced in the process.

The  process can be conduct through surveys, interacting with a group of people, also known as a sample, conducting interviews, and other similar operations.

Three Main Goals Of Market Research

A market research scheme can usually have 3 different types of goals.

Management: Assisting in developing a business or company through proper planning, organization and control of human and material resources to meet all specific market needs at the right time.

Social: Fulfillment of specific customer needs through a required product or service. When consumed, the product or service must meet a customer’s needs and preferences.

Economic: Determine the financial success or failure of a company when it enters the market or introduces new products or services, thus giving certainty to all actions to be taken.

Why Is Market Research Important?

Conducting research is one of the best habits to achieve customer satisfaction, reduce customer churn and grow business. Here are the motives why market research is essential and should be consider in every business:

Insights: Provides insights and opportunities into the value of new and existing products and helps companies plan and strategize accordingly.

Customer-centric: Helps determine what customers need and want. Marketing is customer-centric, and understanding customers and their needs help companies create the products or services that work best for them.

Forecasts: By understanding customer needs, companies can also forecast their production and sales. The  also helps determine the optimal inventory level.

Types of market research: methods and examples of market research

Whether an organization or business wants to know more about consumer purchasing behaviour or the likelihood that consumers will pay a specific price for a product, market research can help generate meaningful insights.

Depending On The Methods And Tools Required, These Are The Types:

  1. Primary (a combination of qualitative and quantitative research): Primary market research is a process whereby organizations or companies engage with end-users or hire a third party to conduct relevant research to collect data. The data collected can be qualitative (non-numerical) or quantitative (numerical or statistical).

When conducting primary market research, two types of information can be gather: exploratory and specific. Experimental research is open-end, which examines a problem by asking open-ended questions in a detailed interview format. Usually with a small group of people, also known as a sample. Here the sample size is limit to 6-10 members. On the other hand, specific research is more precise and aims to solve the problems identified by exploratory analysis.

Also Read: What Do Marketers Do? A Closer Look At The Job Description

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