What is market research?
Market research helps to identify and analyse the needs of the market, the market size, and the competition. It includes social and opinion research and is the systematic gathering and interpretation of information about individuals or organisations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision-making.
Any research includes the formation of the basis at the primary level through many analyses to form the basis of the implementation of the research plan. While marketing research is specifically concerned with marketing processes, such as advertising effectiveness and salesforce effectiveness, market research is specifically concerned with markets and distribution.
Types of Research
Primary Research –
It refers to collecting data from your target audience, real people.
consists of collecting data from published and verified research studies.
involves working with statistics and percentages and can deliver quick results.
analysis of opinions is done to obtain certain percentages. This is a longer process and can sometimes take years to complete.
Common types of market research techniques include:
3. Focus groups
4. Customer observation
The international growth of available research both from and via the Internet has influenced a vast number of consumers and those from whom they make purchases.
Why is market research considered crucial?
A company’s brand is defined by the images, narratives, and characteristics people associate with it. Market research surveys are useful for determining features and benefits that differentiate you from competitors. These are then translated into emotionally compelling consumer language. Focused groups and interviews can be used to learn about their emotions and associations with certain brands.
“If you keep doing what you’ve always done, you’ll keep getting what you’ve always got.”
The same goes for research. If you’re doing the same old types of market research, speaking to the same old people, and doing the same old tired surveys—you’re already behind. Competitive analysis allows you to assess your competitor’s strengths and weaknesses in the marketplace, providing you with the fuel to drive a competitive advantage.
Segmentation of consumers
Consumers are the building blocks of any market industry. By their valuable feedback, the performance of any company is determined. Consumers are categorized according to different parameters set up by market researchers, such as:
Information includes age, gender, family status, education, household income, and occupation.
The niche for people
It includes socioeconomic status, class, lifestyle, personality traits, generation, interests, hobbies, etc.
People’s brand affinity, consumption and shopping habits, money spending, etc.
Common mistakes to avoid as a market researcher.
Mistakes are made by people, not robots, but in order to succeed, one must remember to not make mistakes that can cost you your whole life with just the feeling of guilt inside. As a market researcher, one should specialize in collecting, analyzing, and presenting either quantitative or qualitative research data.
The rapid growth of international business and developments in information technology have created worldwide opportunities in this field. Not knowing your research objective can cost you so much more than the business you’re owning.
- Being unaware of the competitors around us
- not using the right research tools.
- Wrong interpretation of results
- Not planning out the whole research process and hence framing is also cancelled.
- Identification of the right target group is a must.
- Ask for help when you need it.
- Ask questions that are specific, explicit, and to the point of reference.
- Recognizing the importance of market research is the first step in gaining quality results. Good market research utilises both primary and secondary sources.
Getting the right answer to a critical business question is critical when taking the next step toward long-term growth. Conducting market research before launching any product or service is important, as failing to properly plan could result in an undesirable outcome. Make sure you allocate adequate time and resources to achieve optimal results.
Avoid the common mistakes and use market research wisely to position your business for success.