Market Research

Market research is defined as performing a personal customer study to determine the feasibility of a new item or brand. This method allows businesses or organisations to pinpoint their target market, collect and record opinions, and then make informed choices. The market study can be performed in-house by companies and industries or outsourced to corporations with expertise. Distributing surveys, connecting with a small number of individuals, gathering information, and certain other procedures are all examples of market research.

Objectives of Market Research

In most market research projects, there are three basic goals.

Social: Provide an essential commodity to fulfil the specific needs of a consumer. Consumers’ demands and expectations should be met whenever merchandise is used.

Administrative: Help a firm or corporation grow by adequately planning, organising, and controlling both people and material resources, thereby meeting all particular market demands at the right moment.

Economical: Examine the economic degrees of outcome that a company can have when new to the business or releasing new items, and make sure that all choices are clear.

The Importance of Market Research 

Every company’s primary focus is on obtaining new consumers and increasing revenue; market research assures both. Market research is essential for every organisation, whether a sole proprietorship or a major multinational. The following are reasons why it is critical:

Business issues to be recognised: Market research assists us in identifying fresh prospects that our company may be missing. After market research is completed, we will better understand our target clients. We will be able to recognise challenges and the potential to control troublesome regions of the organisation at this stage.

Reduce the likelihood of a business failure: Market research assists you in identifying the opportunities with the least amount of risk. When the product is underperforming, it will answer issues such as why your consumers are not returning. If sales have begun to decline, it will also provide you with a clear picture of the situation.

Well-informed business decisions: Once you understand your challenges and how to fix them, you have the information needed to make an informed business choice on whether to introduce a new product, terminate current products, or upgrade current products.

Expansion potential in new areas: Market research enables you to take a distinct strategy to each area. Various advertising for students, or various advertisements for single fathers, pregnant women, and single parents, for example, might be adjusted based on the demographics and lifestyles of the target audience. The social networking paid advertisements tool can assist you in better targeting your consumers.

Market developments: Market research provides a comprehensive picture of market trends, such as what issues individuals encounter and how you might address them. Consumers’ current interests; whether they are enjoying video games and watching films; whichever sector is much more competitive; people would prefer necessary items or luxury goods and services.

SWOT: Market research will provide a complete SWOT analysis of the company’s strengths, weaknesses, opportunities, and threats. One can make a good choice with the aid of internal and external analyses.

PESTLE Analysis: Market research supplies you with precise sustainability reports.

Market Research Types

Primary market research: Primary market research is when a corporate contacts end customers individually or hires someone else to support research and collect data. A blend of qualitative research methods is used in primary market research. Two types of data may be collected through primary research: experimental and specialised.

Secondary market research: Secondary research involves gathering information from many other sources such as governmental bodies, the press, and commercial associations. Relevant information is published in periodicals, magazines, books, corporate sites, and government-provided and non-government entities.

Quantitative research: Questionnaires, focus groups, inspection, interviewing, poles, web questionnaires, and mobile surveys are all examples of quantitative market research.

Qualitative research: Qualitative research is related to quantitative market research, but this data is acquired in an exploring and open-ended manner that may be analysed afterwards.

Descriptive research: The goal of descriptive market research is to determine the most exact and proper response to market challenges.

Exploratory research: In exploratory research, researchers generally have a basic understanding of the situation, but the study is done to understand the situation better.

Causal research: The causal form of market research establishes a relationship between cause and effect and a factor to track variations.

Market Research Example: Assume that a car manufacturer plans to release a CNG-powered vehicle. To encourage cleaner fuel, the corporation will be engaged in creating various plans and methods to determine the demand for the automobile they want to release. Aside from that, the corporation will look for rivals and the target demographic while bearing in mind the CNG supply in India. As a result, studies are carried out on numerous concepts to develop a more effective and resilient design.

Conclusion

Market research is the act of acquiring, evaluating, and analysing data on industry, its goods and services, customers, and rivals to gain a comprehensive perspective and make better decisions. It is thought to be required for effective business strategy. Market research is conducted for various objectives, including discovering new markets and possibilities, testing new goods and services, corporate innovation, product endorsements, and understanding the overall industry. This type of research is conducted in-house or through a market research firm that specialises in the field.