Market Research

Definition

Market research is the systematic gathering, recording, and analysing of data about issues related to marketing products and services.

Importance of Market Research

Market research helps identify and analyse consumer needs, preferences and behaviours. With this information, a business can make informed decisions.
Through market research, a business can understand the market trends and the competitive landscape, which assist in strategic planning.
Market research is essential to decrease business risks by enabling better decision-making and formulating effective marketing strategies.

Types of Market Research

Primary research (Field Research): This type of research involves the collection of data that doesn’t exist yet. This could be through surveys, interviews, observations and experiments.
Secondary research (Desk Research): This type of research involves the summarising, collating and/or synthesising of existing research. Sources for secondary data could be reports, newspaper articles, journals, government statistics etc.

Methods of Primary Market Research

Surveys: Formal questionnaires answered by a target audience. Can be conducted online, over the phone, or through the post.
Interviews: One-on-one conversation where questions are asked to explore the views of the individual.
Focus Groups: A form of research where a group of people are asked questions in an interactive setting.
Observations: The researcher watches behaviour in real-time to gather data.
Experiments or Trials: The researcher changes variables within a controlled environment to understand if these changes affect consumer behaviour.

Methods of Secondary Market Research

Internet: A large source of secondary data, can be through official statistics, reports, and articles.
Libraries: Books, journals and newspapers can provide historical and latest developments in the market.
Government and NGOs Reports: These reports often contain a wealth of information about different industries, trends and demographics.
Competitors: Observing what competitors do is a great way to see what works and what doesn’t.

Limitations of Market Research

It could be costly and time-consuming, especially primary research.
Quality of research depends on the skills of the researcher.
Data collected may be outdated or not relevant.
There could be possible errors or bias in data collection.
Primary research could have low response rates, affecting the validity of data.

Understanding these points about Market Research can help businesses shape their marketing strategies effectively to meet consumer needs and remain competitive in the marketplace.