Marketing is an activity of planning and executing the distribution, promotion, and pricing of products and services that satisfy individual and organizational aims. Market research is the act of identifying, anticipating and satisfying customer requirements profitably. It provides:
- Information about customers, including their behaviour, preferences, needs or wants.
- Market size or forecasts of the same.
- Opportunities for new products, services and ways to organize production.
Types Of Market Research:
This is the gathering and analysis of data through surveys and interviews. You can do primary research in person or by telephone, mail or other electronic means. This type is the most expensive type of research but the most accurate.
Professional market research firms best do primary research with experience in the field. This can also be done with focus groups or interviews using experts in the specific area you are conducting research.
Secondary research is created from information that has already been gathered and published somewhere else. This type of research is the cheapest way to get information, but you must know where to find it and analyze it.
There are many secondary resources available for free or by subscription on the Internet. Examples of these are government or private reports, company brochures, or annual reports. Surveys done by other companies can also be used as a source of secondary research.
- More expensive than the collection and processing of secondary information but yields more accurate results.
- It can help to determine what questions should be asked in a survey or interview.
- It can help identify new trends and opportunities for business.
- When done poorly, it costs you money and wastes time at best and puts your business at risk at worst.
The best example of the importance of market research is Coca-Cola. At one point, they were losing sales to another company that had created a new version of Coke with no authentic flavour but a sweeter taste. Once Coca-Cola finally realized what was happening, they eventually came up with New Coke which became as popular as their original drink. Market research would have helped them know that what the other company was doing could be appealing to customers and that people wanted something with a sweeter taste.
What Are The Advantages Of Market Research?
Market research has many advantages for organizations, both large and small. The most crucial thing market research does is help you evaluate the existing market. By taking the pulse of your customers, you will be able to reduce risk by avoiding the pitfalls of launching a product that no one wants or needs. The second thing it does is help firms develop new products and services for existing markets.
What Are The Disadvantages Of Market Research?
For many companies, conducting market research can be costly, but it is relatively simple to do. You will need the right tools from completing surveys, analyzing trends, and preparing presentations for your team or clients. Fortunately, there are many market research software options available at affordable prices.
Market research can be time-consuming and repetitive, so an easy-to-use program can save you valuable time by automating the more mundane tasks.
Before selecting a market research software program, determine your exact objectives, from conducting surveys online to compiling data from various sources into one report.
Market research is a powerful tool to help your business grow and develop new products to meet your customers’ needs. The need for market research becomes more important, especially in forecasting future trends within the economy. This is because it will assist with analyzing complex data sets for finding newer patterns along with helping you make informed decisions about the market.
In conclusion, market research is a tool that business owners should use to help them with expanding their businesses and, in the process, provide the necessary information to support a decision-making process.