Market Research

Market research is a systematic process of gathering, analysing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service.
It involves studying aspects such as consumer behaviour, competitive positioning and trends within the industry.
Market research is crucial as it supports decision making, reduces risk, and provides insights into how to improve products and communicate effectively with the target audience.

Primary research is information gathered first hand from original sources.
Methods include questionnaires, interviews, focus groups, and observational study.
It may be costly and time-consuming but provides specific data tailored to the organisation’s needs.

Secondary research involves the use of existing data, or data gathered by someone other than the user.
This includes reports, studies, internet research, and statistical data.
It’s a less costly method which provides a broad background view.

Quantitative research develops numerical data and can be used to generate statistics.
It provides measurable, comparable data, often used for sales projections, market share, and understanding customer demographics.
Surveys with yes/no or multiple-choice questions are common quantitative research methods.

Qualitative research develops non-numerical data, such as responses to open-ended questions, observations or transcripts from focus groups.
It provides deeper insights into customer attitudes, behaviour, desires, and helps to understand ‘why’ and ‘how’ certain decisions are made.
Methods include in-depth interviews, focus group sessions, and observational studies.

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities.
Effective market segmentation should result in segments that are measurable, accessible, substantial, differentiable, and actionable.
This allows for targeted and effective marketing strategies, catering to the specific needs of each segment.

Market research is not without its limitations including time constraints, availability and reliability of data.
Primary research may be costly and time-consuming and secondary research may lack specificity to the organisation or could be outdated.
Furthermore, data interpretation may vary and could be influenced by the researcher’s subjectivity.
Despite these limitations, market research remains a fundamental tool in business decision-making about their strategies and operations.