I will educate you on market research definition or you can as well call it marketing, right here we usually call it market, what is market research
Not only that, i will give you a detailed guide on how to do market research which will be helpful for your business or a firm or an organization. This allows organizations or businesses to discover their target market, collect and document opinions and make informed decisions. Let’s look at what is market research.
Market Research Definition
Market research definition is a systematic process of collecting, analyzing and interpreting information about a target market, consumers, competitors and the industry as a whole. Market research is the foundation of any successful company and it can be used for a number of different purposes – from identifying a new market to launching a new business.
Market research helps entrepreneurs make well-informed decisions, take the guesswork out of innovation and funnel resources into ideas and projects that hold the most potential. Businesses at different stages of growth carry out market research for different reasons. The purpose of any market research project is to achieve an increased understanding of the subject matter. With markets throughout the world becoming increasingly more competitive, market research is now on the agenda of many organisations, whether they be large or small.
After considering the objectives, Market Researchers can utilise many types of research techniques and methodologies to capture the data that they require. All of the available methodologies either collect quantitative or qualitative information. The use of each very much depends on the research objectives but many believe that results are most useful when the two methods are combined.
Quantitative research is numerically oriented, requires significant attention to the measurement of market phenomena and often involves statistical analysis. For example, a bank might ask its customers to rate its overall service as either excellent, good, poor or very poor. This will provide quantitative information that can be analysed statistically. The main rule with quantitative research is that every respondent is asked the same series of questions. The approach is very structured and normally involves large numbers of interviews/questionnaires.
Perhaps the most common quantitative technique is the ‘market research survey’. These are basically projects that involve the collection of data from multiple cases – such as consumers or a set of products. Quantitative surveys can be conducted by using post (self-completion), face-to-face (in-street or in-home), telephone, email or web techniques. The questionnaire is one of the more common tools for collecting data from a survey, but it is only one of a wide ranging set of data collection aids.
For further detailed information about quantitative research please click here: quantitative market research.
Qualitative research provides an understanding of how or why things are as they are. For example, a Market Researcher may stop a consumer who has purchased a particular type of bread and ask him or her why that type of bread was chosen. Unlike quantitative research there are no fixed set of questions but, instead, a topic guide (or discussion guide) is used to explore various issues in-depth. The discussion between the interviewer (or moderator) and the respondent is largely determined by the respondents’ own thoughts and feelings.
As with quantitative techniques, there are also various types of qualitative methodologies. Research of this sort is mostly done face-to-face. One of the best-known techniques is market research group discussions (or focus groups). These are usually made up of 6 to 8 targeted respondents, a research moderator whose role is to ask the required questions, draw out answers, and encourage discussion, and an observation area usually behind one way mirrors, and video and/or audio taping facilities.
Types of Market Research
Below are the different types of market research;
When conducting market segmentation studies we’re generally asking survey questions aimed at capturing needs, values, attitudes, behaviors and demographics. A B2B company might also want to investigate firmographic data such as company size, revenues, and product category that are relevant to the industry in question.
Marketing can’t effectively speak to every type of person or business at the same time, so one of the main goals of market segmentation is to allow for more efficient and effective marketing tactics.
Without market segmentation companies are shooting in the dark and wasting valuable bullets. They may hit a customer by accident, but they would miss a lot of others.
A detailed understanding of how your product meets (or doesn’t meet) your customer’s needs is crucial both to product development and marketing, so these types of market research studies need to be conducted throughout a product’s life.
Ultimately you should be able to make informed “go” or “not go” decisions about new features and products before launch, and thus save capital, time and effort.
Successful product testing should:
- Give insight into product/service viability by investigating competing and substitute alternatives along side customers’ willingness to embrace new products/services.
- Determine competitive advantage as well as possible threats from similar products/services.
- Identify the products with the highest revenue potential.
- Clarify what improvements should be prioritized before a product launch (or re-launch).
- Pinpoint which product features (both existing and potential) are most important to your target audience.
- Help produce marketing messages to change or enhance existing perceptions about your products/services.
Like product testing, tests of your advertising campaigns can save you valuable time and resources. By taking potential campaigns directly to your audience and gauging their response you can focus on creating truly impactful advertising.
Satisfaction and Loyalty Analysis
Satisfied customers aren’t necessarily loyal customers , but consistently measuring customer satisfaction is a great way to increase customer retention.
This type of market research is aimed at identifying key drivers of satisfaction and measuring the likelihood of customers to continue using a company’s products and services.
The goals of these kinds of studies are:
- Determine what factors influence loyalty, advocacy, and repeat purchases, including product/service attributes, company operation, customer service, price, etc.
- Carefully monitor overall satisfaction, recommendation likelihood, and defection likelihood over time.
- Provide early warnings about emerging gaps in product/service performance, customer service, and processes that might lead to customer defection.
- Help identify areas of the product or service that need improvement to meet changing needs.
- Guide the creation and/or ongoing development of customer loyalty and retention programs.
- Signal when organizational changes need to be made to improve operations and customer retention.
Brand Awareness and Reach
By conducting regular, well-designed brand awareness surveys you can keep tabs on how effective your marketing campaigns really are.
When done right, a brand awareness survey can help you measure:
- Brand Recall: Can a customer spontaneously recall your brand, or do they think first of a competitor?
- Brand Recognition: When presented with a list of brands, does your audience recognize yours as a reputable option?
- Brand Identity: Brand identity is what you as a marketing team create. It’s important to determine whether these efforts are being successful.
- Brand Image: While brand identity is created by the brand itself, a brand’s image is based in the customer’s perception alone. Tracking disparities in these two can reveal gaps in your marketing efforts.
- Brand Trust: In an era of data breaches, keeping tabs on your levels of brand trust is key. If your brand doesn’t appear trustworthy, you will have difficulty retaining customers.
- Brand Loyalty: Loyal customers can become evangelists, but you need to consistently track loyalty levels to determine how often this transformation is happening.
- Customer Profile: Changes in your core customer base may signal the need for a pivot, either in the product or your marketing messages (or both).
How to do market research
How to a market research is one major question we usually ask, as it is the basics of the marketing research.
First, what’s market research?
Market research is the process of learning about your potential customers. Who are they? What are their buying and shopping habits? How many of them are there? It sounds like a complex process for academics. But, it’s actually really simple.
Why you should do at least a little market research:
When you’re starting a business, getting to know your customers is one of the most important things you need to do. If you don’t understand your customer, you don’t know how you can help solve their problems. You don’t know what kind of marketing messages and advertising will work. You don’t know if your product or service is actually something your customers will spend money on.
Market research reduces risk
Please, don’t just do market research because someone told you to do it. Don’t just do it to fill in a section of your business plan. Instead, do market research to get to know your customers and prospects better. Do it because it will greatly reduce risk as you start your business. Do it because it will improve your marketing and sales process.
If it takes too long, you might be doing it wrong
When entrepreneurs tell me that they aren’t going to do market research, they usually say that it just takes too long and prevents them from actually building their business. That means that they’re doing the wrong kind of market research.
In fact, market research doesn’t have to involve tons of work. The amount of research you do really depends on the type of business you are starting, how risky your business model is, and who might be reading your business plan.
Detailed market research isn’t necessary for all businesses. I would argue that restaurants, for example, don’t need to do too much market research. Instead, restaurants should focus on the quality of the food and service. Is your food good enough that your customers will tell their friends? Are your customers willing to pay the prices you want to charge? Location is obviously important for this type of business, so that’s where I would spend my research time.
If you already know your customers really well, then maybe you don’t need to do as much market research. For example, if you’ve worked in an industry for a long time and are starting a new business serving that same industry, then you probably already know the market fairly well and don’t need to spend as much time researching it.
Does your business need market research? Answer these questions to find out:
- Are you serving a primarily local market?
- Does the category of business you are starting already exist?
- Do you have a plan for differentiating yourself from your competition?
- Do people spend enough on your type of business to support both you and your competition?
- Do you already know your industry extremely well from prior work experience?
If you answer yes to at least three of these questions, then you can probably get away with less market research.
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And thats all I have on market research definition, what it is all about and the types plus how to do marketing research.