Introduction To Market Research

Market research is the process of systematically gathering, recording and
analyzing data and information about customers, competitors and the market.

Its uses hold to help create a business plan, launch a new product or service,
fine tune existing products and services, and expand into new markets.
Business Market research is generally either primary or secondary. In
secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible.

Disadvantages of secondary research are that it is often not specific to your
area of research and the data used can be biased and is difficult to validate.

Primary market research involves testing such as focus groups, surveys,
field tests, interviews or observation, conducted or tailored specifically to
that product.

A list of questions that can be answered through market research:

What is happening in the market? What are the trends? Who are the competitors?
How do consumers talk about the products in the market?
Which needs are important? Are the needs being met by current products?

Market research is for discovering what people want, need, or believe. It can
also involve discovering how they act. Once that research is complete it can
be used to determine how to market your specific product.

Examples of internet market research would be questionnaires and surveys.

For starting up a business there are a few things that are important:

1) Market information: Market information is making well-known the prices of

the varied commodities in the market, the supply and the demand. Information about the markets can be obtained in peculiar dissimilar varieties and formats.

Examples of market information questions are:

“Who are the customers?
“Where are they located and how can they be contacted
“What quantity and quality do they want?
“When is the best time to sell?

2) Market segmentation: Market segmentation is the division of the market or

population into subgroups with similar motivations. Widely used bases for

segmenting include geographic differences, personality differences,

demographic differences, use of product differences, and psychographic

differences.

3) Market trends: The upward or downward movements of a market, during a

period of time. The market size is tougher to determine if you are starting

with something completely new. In this case, you will have to derive the

figures from the number of potential customers or customer segments.

But besides information about the target market you also need information

about your competitor, your customers, products etc. Lastly, you need to

measure marketing effectiveness. A few techniques are:

“Customer analysis
“Choice Modeling
“Competitive analysis
“Risk analysis
“Product research
“Advertising the research
“Keyword Research
“Marketing Strategy