Market Research

Market Research is a systematic, objective collection and analysis of data about a particular target market, competition, and/or environment. It always incorporates some form of data collection whether it is secondary research (often referred to as desk research) or primary research which is collected direct from a respondent.

Market research aims to understand the reasons consumers will buy your product. It studies such things as consumer behavior, including how cultural, societal and personal factors influence that behavior.

Definition

Market research is the process of determining the viability of a new service or product through research conducted directly with potential customers. It is provided by many organizations and businesses that want to know what consumers think about their products and services.

History

The history of market research can be traced back to the 1920s when businesses started to realize the importance of market information in business decision making. The first market research agency, the National Analysts, was established in the United States in 1923.

Types of Market Research

There are two main types of market research that businesses conduct to collect the most actionable information:

• Primary Research: Information that comes directly from the source–that is, potential customers. You can compile this information yourself or hire someone else to gather it for you via surveys, focus groups and other methods.
• Secondary Research: This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.

Methods

Market research methods include, but are not limited to:

• Surveys: The most commonly used method in market research is the survey. It can be conducted in various ways such as online, over the phone, or in person.
• Focus Groups: A focus group is a small group of people, usually 6-10, who are representative of the target market.
• Interviews: Interviews are one-on-one conversations with members of the target market. They can be conducted in person, over the phone, or online.
• Observation: This method involves watching and recording the behavior of consumers in their natural environment.

Importance

Market research is important for businesses because it provides insights into the market, the competition, and the customers. It helps businesses make informed decisions and reduce the risk of business failure.

See Also

• Marketing
• Consumer Behavior
• Business Intelligence
• Data Analysis

References

Market Research Resources
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