Market research is the process of gathering, analyzing and interpreting information about a particular market, product or service to be offered for sale in that market. This also involves having an appreciation about the market`s past, present and potential customers for the product or service. In market research, therefore, one looks into the characteristics, spending habits, location and needs of a given business’ target market, the industry as a whole, and the particular competitors faced.
A Tool Assisting Business Growth
There is no doubting that market research can be considered an effective tool to assist in business planning for growth and development. The information collected in the respective research provides insights into customer thinking, buying patterns, and location. In addition, market research also assists monitoring market trends while it helps you to keep an eye on what the respective competition is doing. All in all, this goes a long way in assisting business owners to perform better in their planning.
Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general.
Provides Data For Business Problems
A business owner may employ market research techniques so as to find relevant data for use in solving marketing challenges. Market segmentation usually comes as an outcome of a research exercise which provides insights into why it is profitable to lure only that portion of the market. Market research will also help in obtaining specific data about a given segment of the broader market, the same data which will provide insights into how a product/service may be improved so as to appeal more to a target group.
Market research therefore involves two types of data:
Primary Information
This is research data you compile yourself or by a hired expert. Usually a researcher.
Secondary Information.
This type of research data you find it already compiled and organized for you. This could include reports and studies by government agencies, trade associations or other businesses within your industry.
Why Businesses Do Market Research
There are a number of reasons why a business, small or otherwise, engages in research exercises. Below are some of the common reasons why businesses engage in market research.
• To identify potential new customers
• learn more about existing customers
• Inform their decisions regarding existing and new products or services
• Better understand their competitors
• Test new markets
• Identify performance, pricing or promotion opportunities
Interviews In Market Research
One of the most effective forms of marketing research is the personal interview. They can be either of these types:
A Group Survey
Group interviews or focus groups are useful as brainstorming tools for getting information on product ideas, buying preferences, and purchasing decisions..
The In-depth Interview
These one-on-one interviews are either focused or nondirective. Focused interviews are based on questions selected ahead of time, while nondirective interviews encourage respondents to address certain topics with minimal questioning.
