Whether you want to enter the market with a new product, increase the market base of an existing product or give a unique offering to your customers, you need Market Research.
With your target group becoming smarter day by day, and word of mouth becoming stronger through social networks, Market research caa become the one thing which helps you make the right decisions. Market Research provides the right direction such that your customer base is satisfied with you and you get to know which plans and features need to be adopted to retain or expand on the customer base.
So what is Market Research? – The correct definition of Market research is as follows. “Market research is the systematic collection of information on existing and exponential markets for analysis and subsequent action”. Now to actually understand Market research, you need to understand this statement accurately.
1) Market research is a Systematic collection of information –
Here the key word is systematic. Anyone, even you and me can collect information. But the collection of information is very important and should not be done in a haphazard manner. Imagine yourself, working for days on end to collect a data, and then you find out that the data has not answered 3–4 crucial questions. This is why market research questionnaires are made beforehand. Such that we know which information we have to collect. The information should be useful and to collect it, you need to have a complete system in place which helps you perform the right research and can bring the right results. Thats systematic collection of information.
2) Existing and potential markets –
There are various reasons for carrying out market research. Market research can be connected to existing marketes or potential markets. In an existing market, research can find out the brand equity, brand recall, market potential etc. Market research can also help find out strategies which can be implemented by the company in an existing market.
On the other hand, market research can be used to find a potential market as well as a potential product which the market needs. This is why the top companies have continuous market research activities going on so that they can know where their company is headed and what new potential markets can open up for them.
3) For analysis and subsequent action –
Once you have a systematic collection of data, you need to analyze the same and find out what actions need to be implemented. If your market research shows that the customer is price sensitive, then you may lower the price, or bring a lower priced variant in the market. On the other hand, if brand equity of the product is low, then you need to invest in advertising and brand building activities to increase brand equity and thereby get higher margins.
Thus overall, Market research is a must for a small or large organization. It can pave ways to enter a new market or it can make inroads in an existing and saturated market.
Related posts:
What is Research Design? Type of Research Designs
Desk Research: Definition, Importance and Advantages
11 Types Of Quantitative Research options that exist for Market Researchers
What is Exploratory Research? Types of Exploratory Studies In Sales
Importance of Quantitative Research
Primary Research – Meaning, Process and Advantages
How to write a Research Question? Types and Tips
The 11 Important Steps in Research Design
What is a Research Hypothesis And How to Write it?
What are Research Skills? And Why are they Important?
Avery strong student of marketing,this is the first of its kind resource centre (the web) to me.in my quest to put my marketing career to the top,i wish to thank you guys and to ask you to continue helping the needy.This is the need for a marketing student.
how does social influence affects the buying behavior of the students?
Hi Lhai,
Lets change the word “students” with people.
Think about any big brands in the market. There has been a sense of “style statement” when ppl use those brands. And when you buy these brands, you share the news, your peers talk about it. They aspire for it if they do not own that brand.
Why does a student buy a blackberry(when it actually caters to the business people) ?
Why do Indian marriages spend so much money on the celebrations ?
Think about these questions, and you will realize, the motive behind the spending is influenced by the societal aspects as much as a need.
When i was a student, I preferred to buy branded clothes just bcoz my frnds used to buy them. I had no special affinity towards it.
marketing research is the the study of market and consumers which is the research done for promote the business.it aids to scope and customer thoughts towards develop the company.
As always, great information to read and read again. I found it useful to even compliment my peers without sounding too patronizing. Really nice post… Thanks!