What is Market Research and Why We Need it?
What is Market Research?
Market Research is the systematic gathering and analysis of data about organizations and individuals, this data is gathered through market research studies using a number of social science and statistical techniques to answer questions, in order to gain insights and to support decision making.
The above definition is all well and good, but what does it mean?
Basically market research companies invite people or groups of people to answer questions either in discussion groups, or individually. They will monitor the response of the people or groups. The market researchers will then analyze the data that has been collected. This data can then be sold to other companies that request the information, or by the market research company themselves.
Depending on how experienced, prepared and cleaver the market research company is, the data can be a gold mine for marketers, or sales. This is because they can predict the market trends and sell into this trend. If you know where the consumer market is moving, you or the organization can move with the market to capture sales, and improve the bottom line, i.e. make more money.
Different types of Market Research
Types of Market Research
There are a number of different types of Market Research, these are developed as different types of data sets are needed for specific studies. One type wouldn’t suit another and vice versa.
Secondary Market Research
Secondary Market Research involves gathering data that has already been extracted from previous studies, either collected from previous studies, surveys, paid online surveys or another companies data base.
Primary Market Research
Primary Market Research is pretty much what it sounds like. It is data gathered from the people who are in the market from different means. There are a number of different means the information can be gathered.
Types of Primary Market Research
Market Research Interviews are when researchers interview people or organizations in the field of study that they are gathering information in. These interviews can be very detailed, or very short – this is all depend on the amount of information that is required to achieve the objectives of the Market Research study. There are still a number of different types of interview techniques that achieve different objectives. These are:
- Open ended Interviews
- Focus Groups
For those of you who have been involved in market research before you will be familiar to the focus group type of interviews. These include a group of 4 or more people that are taken through scenarios to ask questions that the interview need to b answered. These paid focus groups are recorded and studied to gather information. This information is either analyzed or sold to other companies.
Paid Surveys & Online Surveys
Surveys are the easiest and most direct approach that market researchers use to gather information, they are a list of questions that the user will answer.
They will sometimes be asked to rate the taste of food, or if they like different logos or even clothes, magazine cover pages, movie trailers etc.
With the introduction of the internet online surveys are by far becoming more and more predominant in market research. These surveys will ask users to fill out questions according to their likes and dislikes. These online surveys will offer either a monetary or points based reward for the users time. These can be large or small depending on the size and complexity of the online surveys.
There are many new online survey sites that list a number of companies that do surveys, but some sites will be better than others. To view the best sites please check best online survey sites list page.
Please leave a comment and share your thoughts below.