The Importance of Statistics in a Market Firm

Should a company open a store in the heart of the city or in the suburbs? Do consumers prefer orange soda over grape soda? Are manufacturing companies outsourcing their accounting services? These are just a handful of the questions market research firms answer for their clients.

Market research firms collect and analyze data that will assist management teams with decision making. It is the analysis of the research data that makes statistics an important part of market research.

Statistics Definition

Statistics is "the collection, analysis and presentation of numerical data," according to the American Statistical Association.

How It's Used in Market Research

From tracking trends to monitoring changes in consumer behavior, none of this would be possible without statistics. Marketing firms use statistics to determine how many people they need to survey, measure or track. That data is then used to make general assumptions and predictions about a larger group.

Examples of Market Statistics

Perhaps the most well-known examples of market statistics are the Nielsen television ratings and political opinion polls. Both survey a small segment of the population to determine what American households are watching or who they are likely to vote for.

Importance

Market research is used to estimate the risks associated with potential management decisions, according to quickmba.com.

Other Types of Marketing Research

Naturally, numbers can't tell the entire story. In addition to statistical data, market researchers will often conduct qualitative (non-numerical) research such as interviews and focus groups.

Other Uses of Statistics

Statistics is used in virtually every sector of business and government, including medicine, insurance, agriculture, computer science and law enforcement, according to the American Statistical Association.

References

• American Statistical Association
• Quick MBA
• American Marketing Association