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Market Reasearch

By Alaa Aly

 What Is Market Research?

Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. Market research allows a company to discover the target market and get opinions and other feedback from consumers about their interest in the product or service.

This type of research can be conducted in-house, by the company itself, or by a third-party company that specializes in market research. It can be done through surveys, product testing, and focus groups. Test subjects are usually compensated with product samples and/or paid a small stipend for their time. Market research is a critical component in the research and development (R&D) of a new product or service.

Market Research for Business?

Market research is a way of getting an overview of consumers' wants, needs, and beliefs. It can also involve discovering how they act. The research can be used to determine how a product could be marketed.

Factors that can be investigated through market research include:

  • Market information: Through market information, one can know the prices of different commodities in the market, as well as the supply and demand situation. Market researchers have a wider role than previously recognized by helping their clients to understand social, technical and even legal aspects of markets.
  • Market segmentation: Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting geographic differences, demographic differences (age, gender, ethnicity, etc.), technographic differences, psychographic differences, and differences in product use. For B2B segmentation firmographics is commonly used.
  • Market trends: Market trends are the upward or downward movement of a market, during a period of time. Determining the market size may be more difficult if one is starting with a new innovation. In this case, you will have to derive the figures from the number of potential customers, or customer segments.
  • SWOT analysis: SWOT is a written analysis of the Strengths, Weaknesses, Opportunities, and Threats to a business entity. A SWOT may also be written up for the competition to understand how to develop the marketing and product mixes. SWOT method helps to determine and also reassess strategies and analyze business process
  • PEST analysis: PEST is an analysis of the external environment. It includes a complete examination of a firm's Political, Economical, Social, and Technological external factors, which may impact firms' objectives or profitability. They may become a benefit for the firm or harm its productivity.
  • Brand health tracker: Brand tracking is the way of continuously measuring the health of a brand, both in terms of consumers’ usage of it (i.e. Brand Funnel) and what they think about it. Brand health can be measured in a number of ways, such as brand awareness, brand equity, brand usage, and brand loyalty.

Market Research Methods?

There are lots of different ways you could conduct market research and collect customer data.

1. Surveys: the most commonly used

Surveys ask users a short series of open- or closed-ended questions, which can be delivered as an on-screen questionnaire or via email.

2. Interviews: the most insightful

Interviews are one-on-one conversations with members of your target market.

3. Focus groups

Focus groups bring together a carefully selected group of people who fit a company’s target market.

Importance of Market Research?

It provides information and opportunities about the value of existing and new products, thus, helping businesses plan and strategize accordingly.

It helps in determining what the customers need and want. Marketing is customer-centric and knowing the customers and their needs will help businesses design products or services that best suit them.

By understanding the needs of customers, businesses can also forecast their production and sales. One of the most difficult aspects for a production manager is to keep inventory stacked. What is the requirement and how much should be produced to fulfill the needs of the customer? Market research helps in determining optimum inventory stock.

To stay ahead of competitors market research is a vital tool to carry out comparative studies. Businesses can devise business strategies that can help them stay ahead of their competitors.

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