Researching the Market

Market research is a systematic collection and analysis of data regarding a specific market, its customers, competitors, and market trends.
The main purpose of carrying out market research is to make informed decisions and strategise effectively.
The information gathered can help businesses recognise and potentially take advantage of new opportunities.
There are two primary types of market research: qualitative research (based on observations) and quantitative research (based on numerical data).

Primary data is first-hand data collected directly by a business. Methods include surveys, interviews, and observations. This kind of data is more time-consuming and costly to collect, but is tailored specifically to the business’ needs.
Secondary data, also known as desk research, refers to data that already exists, collected by someone else for another purpose. This could include market reports, sales data, and government statistics.

Surveys are a common form of collecting primary data. They can be distributed to a large number of respondents and are relatively inexpensive.
Observations are a qualitative approach where the consumer’s behaviour is studied. It can reveal how a consumer genuinely behaves in a real-life scenario but could be affected by observer bias.
Focus groups involve a group discussion on a specific topic, guided by a moderator. They provide in-depth qualitative data but can be influenced by dominant group members.
In-person interviews allow detailed responses but can be time-consuming and labour intensive.

Data collected through market research needs to be carefully analysed to extract useful insights. This process may involve identifying patterns, interpreting graphs, and deciding on significance.
It’s important to ensure that the data is reliable and valid - that it genuinely measures what it intends to measure and that similar results would be gained if the research were to be repeated.
Analysing secondary data may involve looking at trends over time, comparing sales figures, or calculating market share.

Through effective market research, a business can identify gaps in the market, understand customer behaviour, track market trends, and gain a competitive advantage.
It reduces business risks by providing insight into the market situation and consumer needs before any decisions are made or changes are implemented.
Even after a product is launched, market research is crucial for ongoing improvements and enhancements.

Formulating the right marketing strategy involves using insights gained from market research to identify target customers and understand their preferences and behaviours.
Market Research can guide marketing mix decisions relating to product, price, place, and promotion.
Continuous market research allows a business to respond swiftly to market changes and customer feedback.