What is Market Research?
Would you like to Know What Market Research is all about, the Importance, the types, and why you need efficient and effective it? Or do you want to understand or learn more about the concept? You can read through this article as we will be discussing everything you need to know about Market Research. In the meantime, applying for guesswork in your business can lead to a costly mistake in your business. Additionally, this can hinder you from achieving your business goals and plans whether short-term or long-term. It is therefore important; you employ it in your business.
Market Research refers to the process of collating, evaluating, and analyzing information about your targeted market, audience, customers, and competitors. It can also be referred to as the foundation of every successful business or company. In addition, it can help to verify the success of a new product, ensure that your team is effectively communicating the right values about your business.
When you’re in doubt about the state of an industry, conducting effective market research can provide you with answers as well as provide you details about your competitors. In turn, this will help you recognize your weak point and how to work harder to promote your business. It is, however, worth noting that; it can be conducted by an organization directly or an agency or a researcher might be employed.
Why Conduct a Market Research?
Meanwhile, there are several reasons why you need to conduct Market Research either with the help of the tool or directly. In this section of the article, we will be discussing some of the reasons why you need to conduct the search. Here are some of the reasons;
- It helps to determine the size of your target market.
- You can test a new product by conducting market research.
- Gain knowledge of your competitor’s strengths and weaknesses.
- Determine the attitude of your consumers about the price of a particular product or service.
- Discover new opportunities.
- Keep track of new trends in your target Industry.
- Improve and innovate your brand or business.
- It helps to boost the success of your promotional Campaigns.
Ultimately, Market Research can provide you and your team with the information, analysis needed to reach your prospective customers as well as reduce the potentials risk of guesswork. Employing this method in your business, brands, organization is the best way of achieving customer satisfaction and your business goal in general.
Types of Market Research
There are two basic types of Market Research and this includes; Primary and Secondary Research. However, these two types of Information or Research comprise other research such as interviews, focus groups, service user research, brand awareness research, and a lot more. But we will be discussing the main types which are primary and secondary. Here is an overview of each type of Research;
This is the process of collecting or gathering information about your business or brand directly from customers. You can collate these data from different sources by conducting surveys, questionnaires, or focus groups. This is mostly used by small business owners as this will enable them to understand what people think about their brand, their product, or services.
When conducting Primary Research, an in-depth or one-one discussion with your target customers, audience, or market is needed. This can be carried out in person or through online platforms. Mostly, customer surveys are used to conduct research studies about a particular brand, product, or service. It is one of the most effective ways of understanding and determining your customer’s views and attitudes toward your organization, brand, or company.
Unlike Primary, Secondary Market Research makes use of public information or data other people have collected to conduct their brand’s research. This includes market statistics and reports or internal sales and marketing records. Generally, this is effective when in need of a general view of market trends and customers’ attitudes throughout your product’s launch.
Nevertheless, Secondary Research can minimize your cost, especially for a startup business as you can find some of this information in your business reference section. Or from commercial sources which include, reports carried out by research agencies. Although some might require you to pay you can access some for free.
How to Conduct an Effective Market Research
If you need to carry out Market Research, there are certain steps and guidelines you need to be aware of to effectively achieve your goal. Here are some of the steps and guidelines to follow;
- Determine the Problem
- Create a Market Research Plan intended to solve the problem
- Know the right people to engage for the research
- Select your preferred Market Research
- Collate Relevant Data
- Carefully analyze your data
- Create a Research Report
Finally, make the right decision and implement it. This last step is very imperative as this will help you in achieving the main of conducting Market Research in the first place. Besides, you will get to enjoy all the benefits that come with it. Thereby reaching your business goal and plans.