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Market Research – When a company wants to know its target market customer’s behavior and purchasing pattern, researchers perform different studies and use various tools to obtain the required results.
About Market Research
Marketing research refers to the systematic collection, recording, and analysis of quantitative and qualitative data related to issues related to the marketing of products. It involves specifying data to address these problems, designing methods to collect information, and managing and implementing the data collection process. Once the collected data is analyzed, its results and implications are sent to a team working on this analysis.
What types of Market Research can you do?
Some of the Common Types Of Market Research Activities Include:
- Brand Research
- Campaign Effectiveness
- Competitor Research
- Consumer Research
- Customer Segmentation Research.
- Product Development
- Usability Testing
Market Research involves Two major Types of Analysis:
1. Primary Research
Primary research means the researcher is in direct contact with the target customer. It is a process in which organizations or companies contact end consumers or employ a third party to carry out relevant studies to collect data when conducting primary market research; two types of information gets gather: exploratory and specific.
Exploratory research is open-ended, where a problem is explored by asking open-ended questions in a thorough interview format, generally with a small group of persons, also known as a sample. Here the sample size is upto to 6-10 members.
On the other hand, specific research is more precise and is helpful to solve the problems identified by exploratory analysis. The data collected can also be qualitative (non-numeric) or quantitative (numerical or statistical). Primary market research combines qualitative and quantitative market research. In addition, companies often hire third parties to perform primary market research for them.
Quantitative market research is a type and method such as surveys, focus groups, observation, interviews, publications, online pollsters, and telephone surveys. As the name implies, the data collected from quantitative research is presented as figures and numbers.
The qualitative market research study involves semi-structured or unstructured data from some commonly used qualitative research methods. Organizations use qualitative research methods. It is also quantitative and involves techniques such as surveys, focus groups, observation, interviews, publications, online surveys, and telephone surveys. But in qualitative market research, data is collected in an exploratory and open-ended way, which can be interpreted later.
Primary Market Research Methods
- The focus group is one of the most widely used qualitative research methods. The focus group is a small group of people (6-10) who typically respond to online surveys sent to them. The best part of a focus group is that information gathers remotely without personally interacting with group members. However, this is a more expensive method helpful to manage complex information.
- As the name suggests, this way involves personal interaction in an interview, where the researcher asks questions to collect statistics or data from the respondents. The questions are primarily open and made to make the answers easy. This method relies heavily on the interviewer’s ability and experience in asking questions that elicit responses.
- This type of in-depth research carries out in the natural settings of the respondents. This method requires the interviewer to adapt to the respondents’ natural environment, a city, or a remote village. Geographical limitations may be a hindering factor in carrying out this type of research. Ethnographic research can continue long from a few days to a few years.
- This method has evolved to send structured online surveys to respondents for actionable insights. Researchers use modern, technology-oriented survey platforms to structure and design their survey to evoke maximum responses from respondents. Companies often hire third parties to perform primary market research for them. The data collected from primary research can be quantitative (numerical) or qualitative (non-numerical), depending on the planning and the question prepared by the researcher.
- In the descriptive type of market research, the focus is on finding the precise and correct answer to market problems. The following questions focus on, as how our product gets consume. What kind of people buy our product? Who exactly are the target buyers of our product?
2. Secondary Research
Secondary research uses information from external sources such as government agencies, the media, chambers of commerce, etc. Basically, this information publishes in newspapers, magazines, books, company websites, free government, non-government agencies, etc. The secondary source creates uses of the following:
- Public foundations – Public sources like the library are also a fantastic way to gather free information. Government libraries often offer free services; a researcher can document the information.
- Commercial sources: Commercial sources, although reliable, are expensive. Local newspapers, magazines, newspapers, and in addition television media are excellent commercial sources for gathering data.
- Educational Institutions: Although it’s not a very popular source of information gathering, most universities and educational institutions are rich sources of information as more research projects carries out there, than in any business sector.
Hence, market research is vital to a company’s research and development (R&D) stage. It helps companies understand the viability of a new product and see how it might perform in the real world. The market research services are also overgrowing, which signifies a strong interest in market research as 2023 dawns. Consequently, the market research has grown from around $75 billion to $90.79 billion at a compound annual growth rate of 5%.