What is market research?
Market research is the process of collecting, recording, and analyzing data about products or services. It involves gathering information to understand how people behave towards a product or service.
Market research may involve asking questions in one-on-one interviews, telephone surveys, focus groups, person-to-person (P2P) discussions, or providing demographic information.
Why do companies need to conduct market research?
Companies must understand their customers and what they want. This information can help businesses make informed decisions about products, services, prices, and marketing campaigns.
Market research is a helpful tool for understanding consumer behavior and identifying market opportunities and challenges. Companies use market research to understand better their customers, competitors, industry, or market to make informed business decisions.
Types of market research.
Market research, the type of primary research involves directly asking consumers about their opinions. You can do this in one-on-one interviews or telephone surveys. One way to conduct these types of studies is by using focus groups where around five to ten people are invited to participate in a group discussion under the guidance of a moderator. The aim is to get a broad overview of people’s opinions and reactions.
This type of market research uses data that has been collected by someone else. This could be data from previous research studies, surveys, reports, or publicly available data such as the internet. You can use it to back up your primary research or get an idea of what is already there.
This market research uses non-numerical data such as words, pictures, and feelings to understand people’s views. You can do this through interviews, focus groups, or P2P discussions.
This type of market research uses numerical data to analyze information or behavior. This can be done using telephone surveys, online questionnaires, and internet polls where the answers are either yes/no, multiple-choice, or scale-based (such as 1-10).
Different research methods.
When conducting market research, you need to decide on the best research method or methods to use. The most common types of market research methods are:
- Focus groups
- One-on-one interviews
- Telephone surveys
- Online questionnaires and polls
- Depth interviews
- Historical research
- Desk research
- Content analysis
How to choose the proper market research method.
When you’re deciding which market research method to use, you need to consider the following factors:
1. What type of data do you need?
2. How many people will you research?
3. What time frame do you have to conduct the research?
4. How much money can you spend on the project?
5. What is your primary objective (for example, understanding how people feel about a product or finding out what people would be willing to pay for a product)?
Once you’ve answered these questions, you can then decide on the most suitable research method(s) to use.
How to conduct market research.
Now that we know a little more about market research let’s look at how to conduct it. The first thing you need to do is set a clear objective for the research.
Step 1: Define your research objectives.
Like with almost everything, we need to have a goal or set of goals in mind before we start. The same goes for market research. So, before you do anything else, take some time to sit down and define your objectives for the research. What do you want to find out?
Step 2: Decide on the types of research methods to use.
Decide which market research method(s) will best address your objective(s). If you’re not sure, a combination of different research methods could work best for you. But make sure you have solid reasons for selecting the ones you’ve chosen.
Step 3: Decide on the data collection approach.
This is how you will collect your research data (e.g., 1-on-1 interviews, telephone surveys, focus groups). Make sure the way you plan to do this supports and enhances your market research objectives.
Step 4: Recruit participants.
Now you need to start recruiting participants for your research. This can be done in various ways, but always keep your target audience in mind when recruiting.
Step 5: Conduct the research.
This is where all the hard work happens! Now it’s time to gather your data. Make sure you’re familiar with any questionnaires, scripts, or protocols that come with your chosen research method(s) and follow them to the letter.
Step 6: Analyze the data.
Your research is not complete until you’ve analyzed your results and turned them into actionable intelligence. So make sure you do this part well!
Step 7: Use what you’ve learned to influence future market decisions.
Now that all your hard work is done, it’s time to put it to good use. Use what you learned from your market research to make better-informed decisions about your products and services – and watch your business grow!
Some common mistakes in market research you should avoid.
Running a successful business is all about making the right decisions, and market research is a vital part of this process. However, it’s not always easy to get it right – especially when you’re starting. So, to help you out, here are some common mistakes to avoid in market research:
Mistake 1: Choosing the wrong research method(s).
This is a big one, and it can easily lead to inaccurate data and wasted time and money. So make sure you choose the proper research method(s) for your objectives and target audience.
Mistake 2: Not setting clear objectives.
If you don’t have a clear idea of what you’re trying to achieve, it’ll be challenging to measure your market research’s success (or failure).
Mistake 3: Not recruiting the right participants.
To gather accurate and reliable data, you need to recruit participants that reflect your target audience as closely as possible. So make sure you spend time recruiting the right people for your research.
Mistake 4: Not recruiting enough participants.
This can also lead to inaccurate data, as you may not have enough people to generate a representative sample. So make sure you recruit enough participants to get a good understanding of your target market.
Mistake 5: Collecting data that is not relevant to your research objectives.
This is another common mistake that can easily lead to wasted time and money. So make sure you collect data relevant to your research objectives and nothing else.
Mistake 6: Not analyzing the data correctly.
This is a big one – if you don’t analyze your data correctly, you won’t draw any meaningful conclusions. So make sure you know what types of data analysis methods are most appropriate for your research objectives.
Mistake 7: Making decisions based on faulty or incomplete data.
This is the worst mistake of all – it can lead to faulty market decisions and, ultimately, failure. So make sure you thoroughly analyze your data before making any significant business decisions.
So there you have it: an essential guide to market research. By following these steps, you’ll be able to conduct adequate research that will help you make better business decisions. And who knows, you might even learn something new about your target market!
Remember, market research is an essential part of any successful business, so don’t be afraid to invest the time and resources. Your business will thank you for it.
And that’s it for this article!