What is Marketing Research?
Marketing research is the process of evaluating the feasibility of a brand new product or service, through research conducted directly with potential consumers. This method allows organizations or businesses to find their target market, collect and document opinions and make informed decisions.
Market research are often conducted directly by organizations or companies or are often outsourced to agencies which have expertise during this process.
The process of marketing research are often done through deploying surveys, interacting with a group of individuals also referred to as sample, conducting interviews and other similar processes.
Primary purpose of conducting marketing research is to know or examine the market related to a specific product or service, to make a decision how the audience will react to a product or service. The information obtained from conducting marketing research are often wont to tailor marketing/ advertising activities or to work out what are the feature priorities/service requirement (if any) of consumers.
Why is Market Research Important?
With economy being competitive with each passing day it’s important for businesses to understand and understand preferences of their consumers. Conducting research is one among the most effective ways of achieving customer satisfaction, reduce customer churn and elevate business. Here are the reasons why market research is important and should not be ignored:
=> It provides information and opportunities about the value of existing and new products, thus, helping businesses plan and strategize accordingly.
=> It helps in determining what the customers need and want. Marketing is customer-centric and knowing the purchasers and their needs will help businesses design product or services that best suit them.
=> By understanding the wants of consumers , businesses also can forecast their production and sales. One of the foremost difficult aspects for a production manager is to stay inventory stacked.
What is the requirement and how much should be produced to fulfill the needs of the customer? Market research helps in determining optimum inventory stock.
=> To stay before competitors marketing research is a vital tool to hold out comparative studies. Businesses can device business strategies that can help them stay ahead of their competitors.
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Types Of Research Marketing
There are two types of market research:
=> Primary data
Information on your target market that you’ve been able to compile yourself or pay for someone to gather for you.
=> Secondary data
Compiling research that’s already publicly available e.g. government documents and whitepapers, trade associations and reports from potential industry competitors.
What types of primary research can I find?
=> Exploratory research
This tends to be an open-ended approach to market research; making the most of unstructured interviews with respondents, allowing them to provide lengthy considered answers that, in turn, work to highlight specific industry problems.
=> Specific research
This type of primary research is considerably more precise in its approach than exploratory research; actually because it’s conducted after exploratory research has identified a specific issue. Of the two market research methods, specific research is that the costlier option; largely thanks to the extent of structure and ritual to its approach.
What kinds of secondary marketing research am i able to use?
=> Public data sources
Publicly available data is largely free to obtain. Government departments are usually one of the best public data sources, as well as business departments of public libraries that may be able to provide industry statistics and previously recorded research.
=> Commercial sources
At British Library’s Business & IP Centre, we house quite £5m worth of the newest market reports from leading publishers like Mintel, Frost & Sullivan, Passport and lots of more. Outside of the Business & IP Centre, commercial data will often involve cost factors like association and subscription fees.
=> Educational sources
Institutions and colleges remain valuable data sources despite the very fact they will often be overlooked as a secondary research method. Universities, colleges and institutes tend to hold out more industry, niche research than almost the other sector of the businessmen .
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