The purpose of market research is to examine the market associated with a particular good or service to determine how the audience will receive it. This can include information gathering for the purpose of market segmentation and product differentiation , which can be used to tailor advertising efforts or determine which features are seen as a priority to the consumer. A business must engage in a variety of tasks to complete the market research process.
It needs to gather information based on the market sector being examined. The business must analyze and interpret the resulting data to determine the presence of any patterns or relevant data points that it can use in the decision-making process.
Primary information is the data that the company has collected directly or that has been collected by a person or business hired to conduct the research. This type of information generally falls into two categories: Exploratory research is a less structured option and functions via more open-ended questions, and it results in questions or issues being presented that the company may need to address. Specific research obtains answers to previously identified issues that are often brought to attention through exploratory research.
Secondary information is data that an outside entity has already gathered. This can include population information from government census data, trade association reports or presented research from another business operating within the same market sector. A company that was considering going into business might conduct market research to test the viability of its product or service. If the market research confirms consumer interest, the business can proceed confidently with the business plan.
If not, the company should use the results of the market research to make adjustments to the product to bring it in line with customer desires.
Market research was first put into place in the United States in the s, and originated during the advertising boom during the Golden Age of Radio. Companies that advertised on the radio began to understand the demographics that were revealed by how different radio shows were sponsored. Data collected from these interviews were compared to the circulation of the publication in order to see how effective those ads were.
Market research and surveys were adapted from these early techniques. Data collection then shifted to the telephone, making face-to-face contact unnecessary. A telephone operator could collect information or organize focus groups — and do so quickly and in a more organized and orderly fashion.
This method improved the market research model greatly. Within the last years, market research started to make a shift online. While the platform may have changed, data collection is still mainly done in a survey-style form. It also studies effectiveness of a sales force. Such information helps the companies in identifying areas of shortcoming in sales.
It also examines alternative methods for distribution of goods. The most challenging task for any production manager is to keep optimum levels of inventory. However, production is undertaken in anticipation of demand. Therefore, scientific forecast of sales is required.
Marketing research helps in sales forecasting by using market share method, sales force estimate method and jury method. This can also help in fixing sales quotas and marketing plans. Marketing research is used to study and find out the existing brand position. It finds out the recall value of brands. It explores the possibilities of brand extension or prospects of changing existing brand names.
The main purpose of marketing is to create brand loyalty. Marketing research helps in developing techniques to popularize and retain brand loyalty.
Marketing research helps in testing the new products in one or two markets on a small scale. This helps in finding out consumer response to new product and develop a suitable marketing mix. It reveals the problems of the customers regarding new products. Thus, it controls the risk involved in introducing a new product.
The development in transport and communication has helped in globalization and digitalization of world trade. This has helped in boosting the growth of international markets. Marketing research helps in conducting market survey for export. By collecting data on consumers from different countries, it indicates export potentials.
Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date and accurate data to the decision-makers.
Marketing has become customer-centric. However, large-scale production needs intermediaries for mass distribution. Due to prevalence of multi channels of distribution, there is an information gap. Marketing research helps in collecting information on consumers from structured distribution research and helps in making marketing customer oriented. 4.
With effective market research, you can determine the need for your service, a product's likelihood to sell, target-market demographics, and desirable store locations. There are numerous ways to uncover this information"”from online research to focus groups to counting customers.
First, you need to understand the difference between "market research" and "marketing research." Market research is when you have narrowed down a specific "target, " . Market Research is important for your business in order to understand the interests & opinions of your customers, strengths & weaknesses of your competitors.
Market research is the process of assessing the viability of a new good or service through research conducted directly with the consumer. This practice allows a company to discover the target. Marketing How to Do Market Research--The Basics Types of Market Research you need to talk to real customers about their needs, wants and expectations.