What is Market Research?
Market research is an examination tool used to examine the business environment. It helps organizations identify; who (target market), what (customers prefer), why (customers purchase) and where (marketing channels) to promote products and services.
Conducting extensive market research may be a lengthy process, but it’s certainly worth the time and effort. It helps you make sense of your business environment. More importantly, it helps you develop a better understanding of the customer’s needs and wants. Extensive market research provides you with valuable market information. It gives you the ability to assess market trends, size, and segments.
Market Research Process
The process involves gathering knowledge, data, and information to understand the market. The process involves gathering, examining, and interpreting information. If you follow these steps thoroughly, you can solve your marketing challenges. Consequently, you can achieve your company vision in a timely fashion.
Process for conducting extensive market research:
- Designing approach – Figure out how a plan gathers intelligence. Will you execute primary research or secondary research.
- Identifying goals & objectives – Identify market objectives you want to achieve. Determine what marketing problems you want to solve.
- Gathering information – Attain data from both quantitive (surveys, questionnaires, interviews) or qualitative (focus groups, live interviews, participant observation) research.
- Examining results – Analyze the data and information allocated from your investigation.
- Interpreting information – Understand the findings from your examination.
- Action plan – Devise a strategy to carry out your goals and objectives.
- Measuring goals & objectives – Track the performance of goals and objectives.
All in all, this method of examination can be a pivotal point for your business. Properly performing extensive market research helps your organization attract more customers, increase conversations and ultimately boost sales. Consequently, you can position your business to gain a competitive advantage.
Identify Market Research Purpose
Before you conduct extensive market research, it’s essential to determine your reason for conducting research. Are you aiming to identify valuable customers? Or are you hoping to identify market advantages?
In any case, once you’ve determined your reseason for investigating the market, the next step is appointing a skilled researcher. You must appoint an experienced researcher to attain accurate results.
When conducting extensive market research, it’s essential to keep the 3 C’s (consumer, corporation, competition) in mind. Concentrating on the 3 C’s will enables you to improve your decision-making ability. This allows you to identify effective marketing solutions.
Types of Market Research
The following types of research are essential for investigating small business matters; primary research, secondary research, quantitive research, qualitative research, exploratory research and descriptive research.
It’s critical to perform this investigation prior to launching a company. More importantly, you must conduct research throughout the duration of your business. This will help you avoid pitfalls and uncover opportunities.
What is the definition of primary research? Qualitative or quantitative information collected firsthand. In other words, information gathered from the source, i.e., customer surveys, focus groups, interviews, etc.
The reason organizations and individuals execute primary research is that the information they seek does not exist.
Primary research or original research is a research technique that involves collecting information firsthand. The aim of primary research is to gain knowledge by producing new information.
Secondary research, or desk research, is the most common investigative technique. It involves the study and examination of existing research results. In other words, this method of research entails extracting information that has already been collected.
This method entails collecting market data through sources like the internet, libraries, archives and organizational reports.
Quantitative research is needed for descriptive, correlational and experimental research. This methodological examination includes techniques like surveys, questionnaires, observations and secondary research. It involves gathering intelligence by examining statistical, mathematical and computational tactics.
- Descriptive research — determine a summary of your study variables
- Correlation research — examining relationships between your study variables
- Expemental research — investigation to determine if there’s a cause and effect connection between variables
Quantitative research is important because it provides you with accurate insights that’s logical, statistical and unbiased. The input collected from quantitative research gives you the opportunity to project results for larger or smaller populations.
Qualitative research is a preliminary method of investigation. It entails conducting observations like interviews or focus groups to understand problems. The process involves approaching matters in an natural manner with hopes of interpreting phenomena in terms of the meaning people bring to you.
This method of investigation involves the collection of data through behavioral, observational or verbal studies. Most importantly, it provides you with enough data to identify critical business elements that your organization should address.
Exploration research is a preliminary method of investigation that allows researchers to futuristically identify effective research methods. It involves investigating problems to interpret the root of the problem that needs to be solved. Ordinarily, businesses use exploratory research to understand complex situations when problems are not clear.
Moreover, exploratory research is helpful because it allows researchers to be proactive. Consequently, analysts can gain the most insights on the following topic through creativity.
Descriptive research is used to define characteristics of a population or situation under study. This particular research model focuses on understanding the “what” question opposed to how, when or why.
Descriptive research is identified as a quantitative method of investigation. However, qualitative research can also be used for descriptive purposes. Therefore, it is essential to focus on the careful development of research design to achieve precise and reliable results.