Market research, commonly known as "marketing research," establishes the feasibility of a new service or product through direct customer study. Market research helps an organization identify its target market and gather views and other input from customers regarding their interest in a product or service.
This kind of research can be conducted in-house, by the company itself, or through a third-party market research firm such as Cognitive Market Research. Surveys, product testing, and focus groups can all be used to accomplish this. Typically, test respondents are compensated with product samples or a small stipend for their time. Market research is an essential element for a new product or service's research and development (R&D).
Why Market Research is Important?
Market research assists entrepreneurs in making informed business decisions. It can take the unpredictability out of innovation and apply proper resources to the most promising ideas and projects. Businesses at various phases of development conduct market research for various reasons. There are several ways for companies to employ market research:
- Recognize and develop new market opportunities.
- Examine the market for new items or features.
- Enhance and Innovate their business- Certain company features, like customer service, can be identified early. This can help businesses avoid expensive disruptions in the future.
- Determine the viability of a new business- If market research shows that there is minimal or no demand for the product or service, the company will most certainly not succeed.
- Keep an eye on marketing trends and create strategies for staying ahead or adapting to changing market dynamics.
- Ensure proper product placement- Where, how, and when should a product be released onto the market
- Increase the effectiveness of their promotional initiatives- Businesses can improve their branding and marketing strategy by measuring customer sentiment and analyzing how their brand is viewed.
How does Market Research Gather Information?
Market research comprises a combination of primary market information collected by the organization or a person employed by the company and secondary market information obtained by an outside source.
What is the Difference Between Primary and Secondary Market Research?
Primary information is data obtained directly by the organization or by a person or business hired to do the research. This information is divided into two types exploratory and specific research.
Exploratory research is a less structured method that uses more open-ended queries to generate concerns or issues that the firm might have to address. The specific study seeks solutions to previously identified difficulties that are frequently brought to light through exploratory research.
Secondary data is information that an outside organization has already collected. This could involve population data from government surveys, trade association research studies, or research offered by another company in the same market area.
Information gathered from both primary and secondary sources can be qualitative or quantitative.
What is the Difference Between Quantitative and Qualitative Research?
Qualitative Research- Qualitative data allows users to better understand how individuals feel about various topics. Users can ask people what they believe and how/why they make the choices. In-depth interviews, focus groups, and direct observations are some of the finest ways to get qualitative data.
Quantitative Research- Quantitative data is statistical data that is more defined. Some examples of these types of data are closed question Questionnaires and surveys.
Advantages of Market Research
Market research is critical for increasing brand loyalty and customer satisfaction. As it is rare that a product will attract every consumer similarly, a solid market research study can assist in identifying the primary demographics and target markets most likely to purchase a specific product.
Market research is also necessary to develop a company's advertising initiatives. If the firm's market research shows that its customers prefer Facebook to Twitter they can direct their adverts to one network rather than the other. Alternatively, if they discover that their market segment is value-sensitive instead of price-sensitive, they might concentrate on enhancing the product rather than lowering pricing.
Author's Detail:
Vinayak Bali /
LinkedIn
Catering to tailored needs of clients in Consulting, Business Intelligence, Market Research, Forecasting, Matrix-Modelling, Data Analytics, Competitive Intelligence, Primary research and Consumer Insights. Experience in analyzing current trends, market demand, market assessment, growth indicators, competitors' strategy, etc. to help top management & investors to make strategic and tactical decisions in the form of market reports and presentations. Successfully delivered more than 500+ client & consulting assignments across verticals. Ability to work independently as well as with a team with confidence and ease.
I am committed to continuous learning and staying at the forefront of emerging trends in research and analytics. Regularly engaging in professional development opportunities, including workshops and conferences, keeps my skill set sharp and up-to-date. I spearheaded research initiatives focused on market trends and competitive landscapes. I have a proven track record of conducting thorough analyses, distilling key insights, and presenting findings in a way that resonates with diverse stakeholders. Through collaboration with cross-functional teams, I played a pivotal role in shaping business strategies rooted in robust research.
