About Market Research
Marketing research is the process of gathering data that can be used to make wise decisions about what products and services to offer, who to market them to, and how to best promote them.
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Significance
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Market research plays an important role in all aspects of the process of developing products and services, bringing them to the marketplace, and marketing them to consumers. Conducting research allows companies to create products that meet consumer needs effectively, increasing the likelihood of successful product launches and increased profitability.
Function
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Marketing research serves several important functions. Market research helps companies identify consumer needs, create products and services that meet them, and improve existing offerings. Additionally, market research allows those tasked with marketing to make wise product packaging and promotional decisions, and to develop effective marketing messages. It also allows businesses to identify their market share, as well as that of their competitors.
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Types
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The two major types of marketing research are quantitative research and qualitative research. Quantitative research is designed to discover statistical data, such as how many people in certain demographic groups are likely to purchase a particular product or what percentage of current customers are first time clients. Multiple choice questionnaires and analysis of sales data are examples of quantitative research techniques. Qualitative research is designed to provide information about why consumers view products, services, or marketing messages the way they do. Open-ended survey questions and focus groups are examples of qualitative market research.
Benefits
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Market research allows companies to clearly identify their target audience and develop products and messages likely to appeal to their ideal consumers. Companies that conduct effective market research are much more likely to create products and services with the potential to be successful and to market them effectively to consumers than those that do not rely on research as an integral part of their product development and marketing efforts.
Time Frame
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The best approach to market research is to commit to gathering data on an ongoing basis. Before developing a new product, market research needs to be conducted to identify consumer needs and to analyze what potential competitors are doing. Before the product is brought to market, product testing research needs to be done to verify that the product meets the needs of consumers and to identify changes that might need to be made. Prior to marketing the product, it's important to conduct market research to determine the best product name, packaging strategy and advertising messages. Once the product is on the market, it's essential to track sales data on an ongoing basis to determine market share and other relevant considerations. It's also advisable to gather data from consumers to identify potential problems, benefits that should be emphasized in future marketing efforts, and potential needs that can lead to product enhancements in the future.
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