Market research

Market research is the process of gathering, analyzing, 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 research into the characteristics, spending habits, location, and needs of a business's target market, the industry as a whole, and the particular competitors faced by the business.

Definition

Market research is defined as the process of assessing the viability of a new product or service through research conducted directly with potential customers. It allows a company to discover the target market and record opinions and other input from consumers regarding interest in the product.

Purpose

The purpose of market research is to provide information that will assist in making informed business decisions. This could involve determining potential market size, identifying market trends, assessing customer buying habits, understanding competition, and gauging customer satisfaction.

Types of Market Research

There are two main types of market research: Primary research and Secondary research.

Primary research involves gathering new data that has not been collected before. This could involve surveys, interviews, and direct observation.

Secondary research involves gathering existing data that has already been produced. This could involve reading reports, studies, and other types of data.

Methods

There are several methods of conducting market research, including:

• Surveys: These can be conducted in person, over the phone, through mail, or online. They involve asking a series of questions to a sample of individuals from the target market.

• Focus Groups: This involves gathering a small group of people from the target market and conducting a discussion about the product or service.

• Observation: This involves watching how consumers behave in a natural setting.

• Experimentation: This involves changing one or more variables in the marketing mix and observing the changes in consumer behavior.

Importance

Market research is important for several reasons:

• It helps businesses understand the needs and wants of their customers.
• It helps businesses identify potential opportunities in the market.
• It helps businesses understand their competition.
• It helps businesses make informed decisions about their marketing strategies.

See Also

• Marketing
• Marketing Strategy
• Marketing Mix
• Consumer Behavior