What Is Market Research? Benefits, Types and Key Takeaways: Makreo Research

What is Market Research?

Consumer feedback is gathered through market research in order to find out who the target market is and what they think of the product or service. The research can be conducted in-house, by the company itself, or by a third-party firm specializing in market research. Surveys, product testing, and focus groups can be used. The information gathered during market research is a combination of primary data gathered internally by the company or by an external researcher, and secondary data gathered by an outside source.

Benefits of Market Research

The importance of market research in increasing customer loyalty and satisfaction cannot be overstated. Identifying the key demographics and market segments most likely to consume a product is possible with the help of a strong market research program because no product will appeal to every consumer equally.

Additionally, market research is crucial for advertising efforts, product launches, international expansions, understanding consumer behavior, and positioning the company in the market. Additionally, market research is an important way to understand competitors and the competition. Research has proven effective not only at the beginning but also during growth and decline. Its significance is therefore closely linked to the performance of a company or business, technological advances, and economic shifts.

Market research can be divided into two categories, each with a different methodology and depth of research. An overview has been discussed below:

Primary Research

This type of data typically falls into two categories: exploratory data and specific data. Primary data is collected directly by the organization or by a person or business hired to conduct the research.

Researchers who conduct exploratory research use less structured questions and open-ended questions, which can raise questions and issues for organizations to consider. Through exploratory research, specific issues are often raised and answered through specific research.

Secondary Research

In secondary data, information about a market sector has already been collected by an outside source. For instance, government censuses, trade association reports, or research conducted by other companies in the same sector can be considered secondary data.

The type of market research can further be classified into syndicated, customized and field surveys. We'll discuss syndicated research and field surveys here.

Syndicated Research

This category of research is also called the Research library, and it assists the researcher in summarizing relevant facts and trends in the market.

Field Survey

Compared to focus groups, surveys are a more cost-effective means of getting consumer feedback without having to interview them directly. Surveys are usually mailed to consumers with coupons or vouchers to encourage participation. An online poll, focus group, telephonic poll, or a detailed one-to-one survey can be used to determine customer opinion of a product, brand, or price point.

KEY TAKEAWAYS

• Companies conduct market research to determine the viability of new products and services by interacting directly with potential customers.
• By conducting market research, companies can identify and get feedback from their target markets in real time.
• A company may conduct its own market research internally or contract with a third party.
• Among the methods used in the research are surveys, product testing, and focus groups.
• In market research, primary information is gathered directly or secondary information is acquired from existing sources.

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