Today’s consumers hold all of the power while making a buying decision. Industries are also likely aware that their buyers are constantly evaluating their products online, through market research.
Market Research is the process of collecting and analyzing information about your business’s buyer’s personas. The information could be about a target audience, market, competitors and the overall industry to determine how viable your business would be among the target audience.
Market research helps business owners and entrepreneurs make effective and strategic decisions. It enables decision-makers to think out of the box, guesswork out of innovation, and invest resources and efforts into ideas that hold the most potential. Organizations today require innovative and reliable market research practices at different stages of growth. We have curated a list of ways how businesses can use the market research:
- Evaluate and determine the feasibility of your business – product and service. If the result indicates there’s little or no demand or your product or service, the business is less likely to achieve growth.
- Identify and develop potential new markets and existing markets with the potential of new growth opportunities.
- Test the demand for your product and service, identify the target audience.
- Keep a track of marketing strategies and changing market conditions.
- Identify the potential time period where you can launch your product or service.
The ways of conducting market research are as follows:
- Primary Information
- Secondary Information
Primary research is new research, first-hand data gathered from a number of sources including questionnaires, surveys or interviews with individuals or small groups. Primary research is conducted to validate both the data points obtained from secondary research and to fill in the data gaps after secondary research.
Secondary data is information and data that has already been produced, compiled, gathered, organized and published by others. It is collected from a number of publicly available as well as paid databases include reports and studies by government agencies, trade associations or others. The downside is that everyone has access to secondary information and it is publicly available either online or offline.
The types of information and data collected through primary and secondary
Qualitative information is used to gain an understanding of how people feel about certain things including underlying reasons, opinions, and motivations. It gives insights into what a person thinks and how/why they make decisions they do. Qualitative data collection methods include in-depth interviews, participation/observations and focus groups.
Quantitative information is used to quantify attitudes, behaviors, and opinions by generating numerical data or data that can be transformed into statistics. It uses measurable data to formulate facts and uncover patterns in research. This data needs to be more structured. Questionnaires from focused groups and surveys fall under this type of research.