What is Market Research?

2015-09-14 14:32:44

Generally people take the term market research as brief task. Those in profession are aware of the detailed work that goes in to this two word term. If you get in to the technicality of it all then you should be able to differentiate between market research and marketing research. The term market research is used primarily to discuss the target market whereas marketing research is generally used to refer to all the underlying marketing processes involved in coming up with a marketing strategy. A thorough marketing analysis helps businesses in achieving a competitive edge over their competitors. The  global market research is used for international marketing and when the business is looking to expand on a global scale. The research offers essential information that helps the business in identifying and analysis of the need and size of the market along with the current and potential competition.

What does Market Research comprise of?

Market research is generally comprised of opinion and social research. With the advent and inclusion of internet in almost every function today, the top market research companies make sure to carry out a thorough online market research as well.  Earlier a market research company was only required to study the conventional market but the internet has offered an immense new market to explore and use for all the companies. The gathering of information is very systematic and the interpretation of the gathered information is carried out through utilization of statistical and analytical techniques and methods. These methods and tools have been taken from applied social sciences in order to gain a clear insight of the market and to support decision making.

The concept of market research began and came in to forma practice during the 1920s. It was primarily restricted to radio in the United States. After realizing the importance demographics the advertisers began to sponsor an array of different radio programs.

Market research for business planning

Market research is generally an overview of what the customer wants along with the targeted customers’ needs and beliefs. This particular overview allows the business to gain the right kind of direction. Every startup and new product launch carries out a thorough market research prior to the launch in order to gain insight of the customer needs along with the prediction of success/failure of the product/service. The research offers great information as to how the product should be marketed or advertised. Marketing research is typically of two types:

Primary research

Secondary research

The primary research is further subdivided in to the following:

Quantitative research

Qualitative research

There is no end to the kind of investigation which can be carried out through market research. It actually depends on the product/service and the budget primarily. However there are certain investigations that are considered vital for the success of a product/service. These researches include the following:

Market information

The market information offers various data such as the prices of a variety of commodities being sold in the market. Moreover the supply and demand situation of the products is also estimated through the market information. The researchers play a vital role for the business by offering a clearer understanding of the different aspects of the market such as:

Social

Technical

Legal

Market segmentation

As obvious from the name market segmentation basically involves the division of the market and population in to sub groups. These sub groups are created on the basis of similar motivations and traits. The segmentation takes place on the following basis:

Geographic differences

Personality differences

Demographic differences

Techno-graphic differences

Use of product differences

Psychographic differences

Gender differences

For the segmentation of business to business kind firmographics are most commonly used by the market research companies.

Market trends

Market trends are basically defined as the movement exhibited by the market. The movement can be both upward and downward in a particular period of time. The market trends help in determining the size of a market. However in the case of a new innovation it becomes rather difficult to determine the market size. In a case as such the data and figures are derived from the potential and current customer segments.

SWOT analysis

The SWOT analysis is a must for any business. It basically stands for the following:

Strengths

Weaknesses

Opportunities

Threats

The SWOT analysis thoroughly studies all the aforementioned aspects of a business entity in order to fully analyze its prospects. SWOT analysis is not only used at the stage of creation of the company but also at later stages in order to understand the business position and for further development and growth. Expansion requires this analysis to be carried out as well.

Marketing Effectiveness

The marketing effectiveness plays a determining role in the success of the product/service. It includes the following types of researches/analyses:

Customer analysis

Choice modeling

Competitor analysis

Risk analysis

Product research

Advertising the research

Marketing mix modeling

Simulated Test Marketing

Market research for the film industry

You never know how the audience might react to a new marketing material or topic. In order to understand the customer perception of their ideas and tools the film industry uses market research to test the material used for marketing of the films. There are several types of market research practices used in this particular case including:

Concept testing- this is the procession of evaluation of the reaction to an idea of the firm. This particular type of testing is quite rare

Positioning studios- this is meant for analyzing a script for the opportunities of marketing

Focus groups-these are meant for probing of viewers opinions about a particular film in small groups before the release takes place

Test screenings-this is the process of previewing of the film before it is officially released in the theatres.

Tracking studies- these are meant for gauging the awareness of the audience pertaining to a particular film. It is carried out on weekly basis before and during the theatrical release

Advertising testing- this particular kind of testing is used for measuring the responses of the audience to marketing materials such as the television advertisements and trailers

Exit surveys-these are used at the very end for measuring of the audience’s reactions after having viewed the film in the cinema

Influence from the Internet

The media of internet has changed and influenced almost every other consumer these days due to which the kind of research to be conducted is also affected. The customers have been offered direct knowledge relating to almost every other product and service out there. This factor has been added by the growth element of emerging global markets like China and Russia. These global markets are improving more than the established and relatively more advanced business to commerce type of electronic commerce markets. According to a variety of statistics the consumer demands can be seen in online shopping research penetration along with the general internet researching applications.

The stimulation of this research is done through usage of product enhancing websites and content designed to attract the casual surfing consumers. The graphics play a major role in this particular matter as well.  These tools help in researching consumer specified needs and quality along with the competitive prices. According to the stats provided by the Small business administration the knowledge gained about the competitors and associated industry along with the customers has played a significant contribution to the success of a business. The demand and supply analysis of the product and service along with the understanding of the industry is assured through such researches.

Research and social media applications

The social media applications cannot be ignored as it is obvious from the extensive usage of social media applications by people of ages and kinds on daily basis. According to the statistics provided by the UK Market Research Society that this generation of Millennials is extensively using three social media applications namely:

LinkedIn

Facebook

YouTube

These social media applications help in generation of the business to business e-commerce market along with the development of efficiency in the electric business processes. These applications serve as a highly effective tool when it comes to market research. It is due to their high importance that these applications are now regarded as a separate profitable field of the global field of business.