Market Research
Market research is a very important step in business. It is used
- To convince yourself and others that there is a tangible, viable and accessible market on which to build your business.
- To calculate risk
It is about PROOF.
What is market research? The world of market research has been changing rapidly in recent years. “In the past” market research was done in writing, by telephone or face-to-face. We have been used to online market research for a long time now and the latest trend is market research by using social media.
Market research is the systematic collection and analysis of data that are important for determining and solving marketing problems. It is a scientific study of the factors that determine supply and demand in a certain market.
Your research objectives aim to clarify some of the following objectives:
- To test the feasibility of entering a new market
- To determine market influences on timing, pricing, service, etc.
- To identify potential target market segments
- To establish a buyer profile and demographics for products or services
- To gauge consumer sentiment and buyer confidence
- To study usage and attitude of product or service users
- To study usage and attitude of competitors’ users
- To capture key concerns and expectations from consumers or users
Market research versus marketing research
Market research is a term that is used quite often in consultation with marketing research. Both concepts do, however, differ from each other.
In marketing research, research is mainly conducted into the influencing effect of marketing tools on customer behaviour. Marketing research is also about the marketing of a company in general and not about certain services and / or products. Marketing research is therefore often linked to the marketing mix. Examples of marketing research include price research, distribution research, product research and communication research.
In comparison with marketing research, market research focuses on those characteristics of the market, which are mainly of a sustainable nature and focuses primarily on the behaviours, attitudes, and motivations of a target group to be determined. Market research aims to provide information that is used as a starting point for the development of a marketing and communication policy. Examples of market research include: the number of potential customers, the average spend of that customer on a certain product/service, the average use and so on.
Market research functions
Market research is of great importance for all businesses. The marketing information that results from a market research can be used to give content direction to the marketing and communication policy. In general, businesses assign the following functions to market research:
- The information function: as a business owner, you must keep well informed of the latest developments in your market
- The creative function: developing new ideas, through analysis and application of specific techniques.
- The monitoring function: checking whether the intended objectives of the business are achieved in the market.