Detailed and accurate data is the foundation of all successful businesses. This is because a business is able to achieve a wealth of information regarding the competition, existing and prospective customers; and the industry in general. In a nutshell, it allows the business owner to determine the feasibility of business before committing any considerable business resources. Market Research offers relevant information aimed at helping any marketing challenges that a company is most likely to face; which is an integral part of the business planning process.
What Is Market Research?
This can be defined as the process of analyzing, gathering and interpreting market information about the service or product behavior in a particular market or industry. The data will show more about the past, present and possible future, customer expectation, market trends, market characteristics, location, spending habits and not forgetting competition.
Market research is quite important; – in a matter of fact, marketing strategies such as:
• Unique Services (These are services that separate you from your competitors)
• Product Differentiation (This is the process of creating a product or service identity)
• Market Segmentation (A technique of identifying a specific group within a particular market)
are impossible to achieve or develop without market research. The market research purpose is to observe the market linked with a particular business. Also, to identify how the audience will receive the business and its product or services. Keep in mind that this may include information gathering for the purpose of market segmentation as well as product differentiation. The data can be used to tailor ad efforts as well as determining which features should be considered as a priority to the consumer.
Types Of Market Research
Market research can be divided into two major categories, which are:
1. Primary Research
Primary research is a market data that you compile on your own, through your efforts; and mainly considered as original information. You may also hire someone to collect and research more about your firm’s market.
Primary research is divided into two categories;
• Quantitative Research (Exploratory Research)
According to Wikipedia, “This is a methodical empirical analysis of observable occurrences through Mathematical, statistical and computational methods.” In other words, quantitative analysis is achieved through computerized methods, surveys or market calculations. The method’s objective is to employ and develop theories, mathematical models as well as market hypotheses.
• Qualitative Research (Specific Research)
This is a technique whose approach encompasses many research techniques. This method does vary with the disciplinary back around, like using psychologist with an aim of getting an in-depth human behavior understanding as well as a particular reason(s), which directed such actions. Qualitative research mainly aims at understanding your customers and the industry in general.
For example, knowing why your customers prefer your product, reasons for them buying your product, the reason they bought it at that particular time (do they impulse buy? purchase due to a particular story or buy only when they need it) and much more.
Real business applicable Example (Putting It in A Particular business or product): – Assuming that you are selling camping products and items. Trying to identify your customer purchasing behavior such as, do a majority of them buy these items because they are about to go on a camping trip, or simply buying them in advance? Which season does your camping items gain demand and in which way?
2. Secondary Research
Secondary research is market information that has already been conducted by other parties, such as government and non-government entities. This is data that has already been collected for you. Such information might include, location security, data, and growth; population data, purchasing methods, and market demands.