There is a saying that it is always better to look before you leap and that is the underlying factor of market researching. It is a process of surveying the market and understanding the likeness towards the product or the service you are going to introduce in the market or has been already in use. It is the analytical study of the consumers and their preference which helps to find out the target consumers or the potential consumers and then sell the product or services more efficiently.
The market research is a not only finding the details or getting the numbers, but it is all about analysis of those details collected from the market to decide how to sell, where to sell and whom to sell the products and services. The company itself can continue with the market research, but it is advisable to have a team of market research analysts to have proper results of market researching.
Types of market researching
There are two different categories of market research, and they are –
Primary research – It is the process of market research with includes collecting data from the direct sources (consumers, companies) and collating them together. It is usually done by the companies or the person or agency hired by the company for the research. There are two sub-categories of primary research as well which are:
- Exploratory Research: This includes the open-ended questions which are asked to a selected number of people (sample) to make an idea about their preference and options. This research generates issues as well as ideas on which the company needs to work on to their solution and the process of implementing the plans which seem valuable. These questions are not very well-structured and thus with the issues; questions evolved from this research is addressed in the next step.
- Specific Research: This is the next step where the questions evolved in exploratory research are addressed. There is an analysis of the issues, and then there is a search for the answers and the probable situations as well.
Secondary Research –
This is the research done on the data collected in primary research by other entities like the companies, rating agencies or the government bodies. Other businesses, analysts might use these data to produce their report which is termed as secondary research.
Use of marketing research
Before manufacturing, selling any product or services in the market, it is essential to understand the market sentiments, taste and preference of the people and competition the product or the service providing company is going to face and other issues. Market researching not only helps in gauging the market but also generates or gathers ideas to improve the products and services which help the company in the long run. It helps in preparing a proper business plan which doesn’t only include estimates but real market analysis.
If you are about to launch a new product in the market without any research about its targeted consumers, market sentiments, you might run into massive losses, but with proper marketing research you can save yourself and generate profitable business.