What is Market Research?
Market Research Definition Methods Types and Examples is a systematic process of collecting, analyzing, and interpreting information. The information could be about a target market, consumers, competitors, and the industry as a whole. This is the foundation of any successful company. The research has a number of different purposes – from identifying a new market to launching a new business.
Market Research Definition Methods Types and Examples help entrepreneurs make well-informed decisions. It can take the guesswork out of innovation, and funnel resources into ideas and projects that hold the most potential. Businesses at different stages of growth carry out market research for different reasons. There is a list of ways of how businesses can use market research:
Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general. It allows business owners to determine the feasibility of a business before committing substantial resources to the venture.
Three key objectives of market research
A market research project may usually have 3 different types of objectives.
- Administrative: Help a company or business development, through proper planning, organization, and both human and material resources control, and thus satisfy all specific needs within the market, at the right time.
- Social: Satisfy customer’s specific needs through a required product or service. The product or service should comply with the requirements and preferences of a customer when it’s consumed.
- Economical: Determine the economical degree of success or failure a company can have while being new to the market, or otherwise introducing new products or services, and thus providing certainty to all actions to be implemented.
Use Market Research Definition Methods Types and Examples to find customers
Market Research Definition Methods Types and Examples blends consumer behavior and economic trends to confirm and improve your business idea.
It’s crucial to understand your consumer base from the outset. Market research lets you reduce risks even while your business is still just a gleam in your eye.
Gather demographic information to better understand opportunities and limitations for gaining customers. This could include population data on age, wealth, family, interests, or anything else that’s relevant for your business.
Then answer the following questions to get a good sense of your market:
Is there a desire for your product or service?
Market size: How many people would be interested in your offering?
What are the income range and employment rate?
- Location: Where do your customers live and where can your business reach?
How many similar options are already available to consumers?
What do potential customers pay for these alternatives?
If you choose a direct-mail questionnaire, the following guidelines will increase your response rate:
- Questions that are short and to the point
- A questionnaire that is addressed to specific individuals and is of interest to the respondent
- A questionnaire of no more than two pages
- A professionally prepared cover letter that adequately explains why you’re doing this questionnaire
- A postage-paid, self-addressed envelope to return the questionnaire in. Postage-paid envelopes are available from the post office
- An incentive, such as “10 percent off your next purchase,” to complete the questionnaire