What is Market Research? Definition, Types and Techniques.
Today’s consumers have a lot of power. They can research your product or service and make a buying decision entirely on their own. Plus, you’re more likely to ask for referrals from members of their network or read online reviews than to speak with a sales rep. With this in mind, have you adapted your digital marketing strategy to complement the way today’s consumer researches, purchases, and makes purchases?
What is Market Research?
Market research is the process of gathering information about your target market and customers to verify the success of a new product, help your team iterate on an existing product, or understand brand perception to ensure that your team is effectively communicating your company’s value.
Businesses conduct market research for many reasons, for example, looking for new markets and prospects, testing new products and services, business innovation, product placement, and the industry as a whole.
Advantages of Market Research.
Acquiring new customers and making sales are the main focus of every business; Market research ensures both. Whether it is a sole proprietorship or a large corporation, market research is equally important for every business. Here are some reasons why this is important;
1. Identify problem areas in the Business
Market research helps us to find some new opportunities which are lacking in our business. Once the market research is over, it becomes clear about our target customers and how we can approach them. At this point, you will see the problems and the opportunities to manage those problematic areas. For example, you may have to partner with other businesses.
2. Reduce Business Risk
As stated earlier a steady flow of new customers and sales is the main focus of every business; Market research helps you find those opportunities with minimum risk to achieve your market target. However, you can reduce the risk in a number of ways such as; Testing a product or service before launching it on the market. This will answer questions like why won’t your customers return if your product is failing.
3. Well Informed Business Decisions
When you know your problems and also know how you can solve them using minimum risk. For example, who and where are your customers and why they are dissatisfied; whether to launch a new product or discontinue an existing product or service; Or make some improvements to an existing product. In other words, you have all the ingredients you need to make informed business decisions now.
4. Areas for Expansion
One of the major problems facing all businesses is when it comes to ad accuracy. They don’t know exactly which audience to target. Market research tells you about the demographics of your audience, their nationality, their language, and their culture. Once you know your target market, you can now target your customers using paid advertising tools on social media. For example, separate ads for students on campus, and completely separate ads for single fathers, pregnant women, and single mothers.
5. Market trends
Market research gives you a clear idea about market trends like what problems people are facing and how you can solve them. Nowadays people’s interest; Whether they are playing video games or watching movies, which niche is more competitive; People want essential products or want luxury products and services.
6. SWOT Analysis
Market research provides you with a detailed SWOT analysis such as strengths, weaknesses, opportunities, and threats of the business. With the help of internal and external analysis, you can take better decisions.
7. Pestle Analysis
Political, economic, social, technological, legal, and environmental are known as external factors that can affect your business operations and performance. Market research provides you with a detailed pastel analysis of the environment in which you are running your business.
Market Research Methods.
We have been talking about market research; Now the question is how can we do market research. However, there are two methods of market research, primary and secondary.
Primary Market Research Methods.
As the name suggests, the primary method means to collect information using direct and primary sources as it involves an in-depth analysis of a particular issue or problem.
1. Online survey
A form with a list of checkpoints is sent to the audience via email or direct message to get people’s feedback. Some organizations offer prizes after taking online surveys, which aim to keep the interest level up.
2. Focus groups
This is a very well-known method used by businesses to observe the views of experts from various fields; A focus group consists of 6 to 10 people. Moderation starts the discussion and from time to time stirs it up; Thoughts, gestures, and body language of people are observed.
Observation also falls under the category of primary research method but does not involve a direct relationship between the observer and the subject. The most common example is the bakery; Where cameras are placed at different places, it is seen which product customers spend more time on.
Secondary Market Research Methods.
The secondary market research method means that information is gathered using data that already exists. Research reports and other similar documents are common examples of the secondary method.
1. Data is available on the internet
Googling or internet surfing is a very common method of secondary data collection. There are thousands of websites online providing information on almost every topic. The best thing about this method is that it is free.
2. Commercial information
TV stations, magazines, newspapers, radio, and magazines also fall under the category of secondary business data collection sources. These sources usually have a direct and direct relationship with the information. Commercial sources have a wide range of data, and businesses and organizations that want to collect data from these sources, and then they have to be specific about their range.
Types of Market Research
When a business wants to know the customer behavior and buying patterns of its target market, researchers conduct different types of studies and use different tools to get the required results.
Primary research means that the researcher is in direct contact with the target customer. Companies usually employ third parties to conduct primary market research for them. Data collected from primary research can be quantitative (numerical) or qualitative (non-numerical), depending on the plan and question formulated by the researcher.
Secondary research includes external sources such as commerce, government, media, agencies, etc. Information from such sources is usually published on websites, newspapers, magazines, TV channels, radio, etc.
Quantitative market research is a type and method such as surveys, focus groups, observations, interviews, polls, online questionnaires, and phone surveys. As the name suggests, the data collected from quantitative research is in the form of numbers and numbers.
In the exploratory type of market research, researchers usually have basic and clear knowledge about the issue, but research is done to gain better insight into the problem. The researcher should be clear about his/her ideas; Irrelevant and impractical thoughts should be avoided.
Conclusion- Market research refers to a business strategy in which an organization analyzes market trends, competition, and consumer preferences before launching new products or services. This includes collecting and interpreting data during product development or marketing to help businesses make informed decisions. For more information visit our website digijaguars.