Learn the market research definition and get a clear understand of its role and types and how such an important process is done.
The Market Research Definition
Market research is the process of gathering, analyzing and interpreting information about a market. The viability of a new product or service is assessed through different methods like product testing, surveys and focus groups. Read on to learn of the role, types and how to do this:
Role of Market Research
Market research has a very important role to play as it allows a company to understand the concentration of their target market and their outlook about a product that the company will soon make public. The company can conduct the research itself or it can depend upon a third party company that specializes in market researches. The people who take part in the test as a part of marketing research receive compensation for their time either in the form of stipend or free samples of the product.
Types of Research
There are two types of Market Research:
- Primary Research: It is also known as Field Research and involves the collection of information from customers by the help of polls and questionnaires
- Secondary Research: It is also called Desk Research and involves the collection and analysis of information that is already available. The research information is collected by some other market researchers and is available in the form of statistics and reports.
How the Research is Done
In order to conduct proper marketing research one should do the following:
Firstly, it is important to examine the existing products available in the market. One can learn about customer response to the product and decide for his product likewise.
Secondly, one should examine his target audience and understand their needs. This may include market segmentation.
Thirdly, carrying out a product demonstration is a good idea as it will help to know customer feedback.
Lastly, one should keep an eye on the market to understand which products are selling well and which ones are not popular.