The very first step towards establishing a successful business is by going through intensive research that provides an idea of what your desired market looks like.
WHAT IS MARKET RESEARCH?
Before understanding what is market research, we need to understand the term market. The market is not a place, it is a set of potential buyers of a specific product or service.
Now when you know what market is you, let’s dive into the term ‘market research.’
As the name suggests it is the research conducted to understand the position which your product or service will attain in the market, that is, among your potential buyers who will purchase your goods. Market research enables the company to understand the likes and dislikes of their potential consumers and to fetch feedbacks from them directly about their interest in your product or service.
WHAT ARE THE TYPES OF MARKET RESEARCH?
There are two main types of market research that a marketer should conduct in order to gather an adequate amount of information about a certain market:
- PRIMARY RESEARCH
- SECONDARY RESEARCH
Let us understand each of them in detail;
- Primary Research: Primary research is the research that the company conducts directly from the audience. It is also called first-hand information. We can also refer to the primary research as field research. It is called so because it is done from scratch without considering any existing data from other sources.
Examples of primary market research include:
- Surveys and Questionnaires
- Focus groups
- In-depth interviews
- Trials and experimentations.
- Secondary Research: Unlike primary research, in secondary research, the conclusion is drawn after collecting information from different sources like from public records or data.
Examples of secondary market research include:
- Internal sources – These include the already existing public information in the company’s database. Such information proves to be useful in research in the future. For example, balance sheets, sales figures, etc.
- External sources – These include fetching information from outside the company, that is, by other businesses, organizations, or people. Thus, this includes fetching information from multiple sources outside the company.
For example, government sources, universities, the internet, etc.
HOW TO CONDUCT A SUCCESSFUL MARKET RESEARCH?
Below we have mentioned few steps in order to conduct successful market research:
UNDERSTAND OR DEFINE A PROBLEM
The very first step to conduct market research is to define a problem. Now, defining a problem means understanding what your existing or target audience needs or wants. For example, if you want to launch your own clothing brand, you first need to understand not only what kind of clothes your brand will manufacture but also need to find answers to some questions like –
- What is trending?
- In what season will you launch?
- The trends in price, that is, what range of price you will first launch your clothes on?
- What will be the offered range(discount range) and from when to when?
- What are your target areas?
You need also to make sure the clothing pattern that your brand design is culturally friendly.
DEFINE A RESEARCH PATTERN
Here you need to make a research plan on what group of audience you will conduct your research on, what data you will collect, and from whom, this includes the research type that we have discussed above.
DATA COLLECTION FORMS
Design data collection forms in case you are planning to conduct surveys, questionnaires keeping in mind all the possible questions that can be asked related to your product or service.
CONDUCT A SAMPLE RESEARCH
Whatever way you decide to conduct your research, first make sure you have sample conduct done and see its functionality. For example, if you are conducting a survey, don’t go on conducting it on the whole market at once instead target small groups of the audience and see their reaction. According to their feedback change or edit your survey pattern.
No matter what type of research you are holding, data collection is a common factor. It means collecting all the information that you have gathered through your research at a place. For example, in primary research, if you have conducted surveys make sure to collect all your surveys in one place at the end of your research to move on to the further step.
ANALYZE THE COLLECTED DATA
Now when you have collected the data, it’s time to analyze it. Analyzing the data means going through it thoroughly, understanding the feedbacks given by the audience, and working on the suggestive improvements.
PRESENT YOUR FINDINGS
Now as a marketer, this is the last stage of the market research that you have conducted and invested so much of your efforts and time in, and not be able to present it in a correct way will cause all your efforts to go in vain. Hence it is very important to make an appealing research report. Present your project report to the panel including all the problems, feedback, and your suggestions on them. Ask the panel about their suggestions and come up with the solutions.
WHY IS IT IMPORTANT TO CONDUCT MARKET RESEARCH?
Before trying to enter a market by launching your product or service in it, it is very important to conduct market research to understand and analyze your audience and the way your product will be welcomed.
The market research also enables you to understand :
- What is trending and working for a company like yours
- The scope of your product and service as to where they stand in the market among all the competition.
- The methods and techniques your competitors are applying into market research.
- The insights of the competitors’ products and services.
- What influences your target audience the most and what advertising method you should opt for.
- The challenges you can face in the market.