Market research refers to the process of gathering and analyzing information about a specific market, products, or services that a business would want to offer for sale. It also involves researching the characteristics and unique needs of the market. The exercise can be carried out in-house by an organization itself or through third-parties that specialize in research.
You can research through focus groups, surveys, and product testing. Usually, the subjects get compensation with product samples or some money for their time. The process is critical during the development of new products and services.
The information used during the exercise is classified as either primary or secondary. Primary data is derived from within a company, while secondary data from external sources. Here’s how you get started using market research:
Identify and Define the Problem
The first step when carrying out the exercise is by identifying the problem that a business faces. At first, the statement of the problem may not be clear as only the symptoms may be noticeable at this stage. Once you have carried out exploratory research, having a clear definition is crucial because the task can be costly for many businesses.
Additionally, it is time-consuming. With a clear definition of a research problem, work will become easier during the other stages, including setting research objectives, identifying the right techniques, and the extent of information to be collected while researching.
A Statement of Research Objectives
Once you have identified a problem, come up with a statement of research objectives. The objectives may be in qualitative or quantitative terms and expressed in the form of statements or hypotheses.
Develop a Research Design
A research design refers to a master plan that outlines methods for collecting and analyzing information during market research. The stage involves developing a framework for the research plan of action.
Research also includes the objectives in a research design to ensure that the data to be collected is relevant. At this point, you need to identify the sources of information for the research, sampling techniques, methodologies, and potential costs.
Planning the Sample to Be Used
Sampling involves taking a small percentage of a population to make conclusions about the entire population. When planning the sample, the considerations, including the ideal sample size and how to select the subjects.
At this stage, researchers gather facts to be used to solve the existing problems. You can use primary and secondary information. Some of the common secondary sources include books, articles, and government records.
Once you have completed collecting the data you need, convert it into a format that can suggest the right answers to your research problem. The information is then edited to determine whether there are omissions and ensure consistency. Analyzing refers to applying logic to understand the data that has been collected.
What Can Market Research Do for Your Business?
Many businesses are now conducting research before launching new products and services. Here are some of the benefits of the exercise for your organizations:
Making Improvements to Your Brand
Many firms lack a good handle on their brand. As a result, they may ask questions such as: How do the clients perceive us? How is the level of competition? With market research, you can get a better understanding of aspects such as brand awareness, personification, and competitive comparison.
Evaluating the Effectiveness of Your Marketing Campaigns
Every business owner strives to promote their companies and attract more customers. Researching will enable you to understand the effectiveness of your marketing strategies. It allows you to measure the clients’ reactions to specific efforts.
You Will Identify New Opportunities
Conducting research enables you to find new business opportunities that you can invest in. You can test a market’s readiness for new products and services. For example, you want to open a business and need to identify the ideal location.
Research Leads to Better Goal-Setting
Every business owner sets goals and growth projections. Without conducting research, you won’t know whether your goals are achievable and how to achieve them. The exercise will help you to identify the directions you need to take.
Can NetBase Quid Help?
Yes. The organization has a team of experts who can guide you during market research. It is currently ranked as one of the world’s leading market intelligence platforms.