Market Research

Market Research
Market research any technique or a set of practices that companies use to collect information to
understand their target market better. Organizations use this data to improve their products, and
offer a better product to their customers.
Types of Market Research

1.Face-to-Face Interviews
From their earliest days, market research companies would interview people on the street about
the newspapers and magazines that they read regularly and ask whether they recalled any of the
ads or brands that were published in them. Data collected from these interviews were compared
to the circulation of the publication to determine the effectiveness of those ads.
2.Focus Groups
A focus group is a small number of representative consumers chosen to try a product or watch an
advertisement.
Afterward, the group is asked for feedback on their perceptions of the product, the company’s
brand, or competing products. The company then takes that information and makes decisions
about what to do with the product or service, whether that's releasing it, making changes, or
abandoning it altogether.
3. Phone Research
The man-on-the-street interview technique soon gave way to the telephone interview. A
telephone interviewer could collect information in a more efficient and cost-effective fashion.
Telephone research was a preferred tactic of market researchers for many years. It has become
much more difficult in recent years as landline phone service dwindles and is replaced by less
accessible mobile phones.
4. Survey Research
As an alternative to focus groups, surveys represent a cost-effective way to determine consumer
attitudes without having to interview anyone in person. Consumers are sent surveys in the mail,
usually with a coupon or voucher to incentivize participation. These surveys help determine how
consumers feel about the product, brand, and price point.
5. Online Market Research

With people spending more time online, market research activities have shifted online as well.
Data collection still uses a survey-style form. But instead of companies actively seeking
participants by finding them on the street or cold calling them on the phone, people can choose to
sign up, take surveys, and offer opinions when they have time.
This makes the process far less intrusive and less rushed, since people can participate on their
own time and of their own volition.
How to Conduct Market Research

The first step to effective market research is to determine the goals of the study. Each study
should seek to answer a clear, well-defined problem. For example, a company might seek to
identify consumer preferences, brand recognition, or the comparative effectiveness of different
types of ad campaigns.
After that, the next step is to determine who will be included in the research. Market research is
an expensive process, and a company cannot waste resources collecting unnecessary data. The
firm should decide in advance which types of consumers will be included in the research, and
how the data will be collected. They should also account for the probability of statistical errors or
sampling bias.
The next step is to collect the data and analyze the results. If the two previous steps have been
completed accurately, this should be straightforward. The researchers will collect the results of
their study, keeping track of the ages, gender, and other relevant data of each respondent. This is
then analyzed in a marketing report that explains the results of their research.
The last step is for company executives to use their market research to make business decisions.
Depending on the results of their research, they may choose to target a different group of
consumers, or they may change their price point or some product features.
The results of these changes may eventually be measured in further market research, and the
process will begin all over again.
Benefits of Market Research

Market research is essential for developing brand loyalty and customer satisfaction. Since it is
unlikely for a product to appeal equally to every consumer, a strong market research program can
help identify the key demographics and market segments that are most likely to use a given
product.
Market research is also important for developing a company’s advertising efforts. For example, if
a company’s market research determines that its consumers are more likely to use Facebook than
X (formerly Twitter), it can then target its advertisements to one platform instead of another. Or,
if they determine that their target market is value-sensitive rather than price-sensitive, they can
work on improving the product rather than reducing their prices.
Note
Market research only works when subjects are honest and open to participating.
Example of Market Research

Many companies use market research to test new products or get information from consumers
about what kinds of products or services they need and don’t currently have.
For example, a company that’s considering starting a business might conduct market research to
test the viability of its product or service. If the market research confirms consumer interest, the
business can proceed confidently with its business plan. If not, the company can use the results
of the market research to make adjustments to the product to bring it in line with customer
desires.
What Are the Main Types of Market Research?

The main types of market research are primary research and secondary research. Primary
research includes focus groups, polls, and surveys. Secondary research includes academic
articles, infographics, and white papers.
Qualitative research gives insights into how customers feel and think. Quantitative research uses
data and statistics such as website views, social media engagement, and subscriber numbers.

Market Research

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Market Research

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Market Research

Types of Market Research

5. Online Market Research

How to Conduct Market Research

Benefits of Market Research

Example of Market Research

What Are the Main Types of Market Research?

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