Do you want to know your target audience? Do you want to know what they are most interested in? If yes, you would need to do market research.
But what is market research? Market research, frequently referred to as "marketing research," is the method of determining the potential of a new product or service via direct customer study.
Did you know? The market industry will touch a global income worth 76.4 billion US dollars in 2021, nearly doubling since 2008. The Indian market industry is expected to reach Rs 93,119 crore by the end of 2023, growing at a CAGR of 14.75%,
What is Market Research?
Marketing research is a systematic attempt to obtain knowledge of the target customer base, beginning with knowing who they are and going ahead to what they want. It is an essential component of corporate strategy and critical to retaining competitiveness.
Market research enables a firm to identify its target audience and obtain comments and customer input on their engagement in goods or services. It enables organisations or enterprises to gather and document feedback and make educated decisions.
Market research can be carried out directly by organisations or businesses or delegated to agencies with competence in this area.
What are the Classifications of Market Research?
Primary research & secondary research are the two major types of market research. Both primary & secondary market research serve the same aim, but they do it in different ways.
You or a third party you contract perform primary market research. It entails gathering information directly from customers to meet current demand. Companies perform primary market research to satisfy requirements as they occur, so it is more specific and recent. It often comprises asking individuals a series of questions and documenting their replies. Primary market research requires substantial preparation, resources, and analysis to organize, execute, and employ.
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Secondary market research refers to research that has previously been conducted and is ready for you. Secondary research is frequently published in journals or perhaps on publicly available internet sites. It is based on questions developed by others that you might adapt to your study criteria; therefore, it may only partially fulfil your research objectives. It is beneficial if you need more time or finances to conduct your independent market research.
How is market research conducted?
Market research is carried out in many ways, including surveys, observations, field data, analyses of competition in the market, interviews, and through social media.
Ways To Gather Information
Companies opt for market research for testing viability of their products or services through communicating directly with potential clients. With market research, companies could sort out target markets and get clear opinions and feedback from customers in real-time.
Primary information gathering is the data that the company has collected directly or that has been collected by a person or business hired to conduct the research.
Secondary information is data which an outside entity gathers. It comprises population information from government data, trade associations research data or presented research from another business operating in the same market sector.
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What are the advantages of conducting market research?
The market research gives a more in-depth and comprehensive grasp of customer values. This knowledge can be beneficial in the development of products and the development of marketing strategies.
For example, suppose market research indicates that ingredient sourcing impacts the purchase behaviours of persons aged 20 to 30. In that case, firms may increase their efforts to source their ingredients from healthy, fair-trade sources to draw in younger customers.
Market research may also indicate customer attitudes toward businesses and products. Knowing where a firm stands compared to other companies in the public opinion arena allows one to evaluate the aspects that lead to an organization's growth and identify how to adopt successful techniques into one's strategy.
For instance, if market research reveals that a coffee chain's emphasis on well-trained baristas is popular among customers, a competitor might use that information to move its emphasis to training or to establish another perspective to cater to a different segment of potential customers.
Importance of Market Research
Market research is critical for increasing brand loyalty and consumer happiness. Because a product would rarely appeal to every customer equally, a thorough market research study may assist in identifying the main demographics and market groups more prone to consume a specific product.
Market research is also necessary to develop a company's advertising initiatives. If the firm's market research shows that its customers prefer Facebook over Twitter, they may direct their adverts to one network rather than the other. Alternatively, if they discover that their intended audience is value-sensitive instead of price-sensitive, they might focus on enhancing the goods rather than lowering pricing.
What is Market Analysis?
A market analysis examines the allure and volatility of a certain market within a specific sector. It is included in the industrial analysis and worldwide ecological analysis. These evaluations can identify a company's resources, shortcomings, prospects, and dangers.
Market analysis thoroughly examines your company's intended audience and competitive environment within a certain sector. This study allows you to forecast the level of success you may expect when you launch your business and its items to market customers. The market study comprises quantitative and qualitative data, such as the real size of the audience you intend to service, the pricing customers are ready to pay, and income estimates.
How is Market Research and Market Analysis Different?
Market research is, in essence, a process of gathering responses and data directly from customers to assess the viability of certain business actions. It aids in the resolution of strategic issues such as brand marketing, product design, and customer perceptions. In most circumstances, market research confirms or refutes a hypothesis.
For example, suppose you are considering releasing a new service with younger generations as your intended audience. Still, you want to ensure that youngsters are seeking such things in the market. Market research allows you to ask your core demographic if your item is something they might be enthusiastic about and then determine whether or not to proceed based on their responses.
The primary distinction between market research & market analytics is that, whereas market research focuses on gathering data effectively from the customers in the market, market analysis takes a broader approach, assembling information and insights from a broad spectrum of references (which include market research) to assess all potential growth as well as business projections for the future.
Should you Go for Market Research or Market Analysis?
Market research has been a process of evaluating the feasibility of a new product or service, through research conducted directly with potential consumers.
On the other hand, market analysis includes quantitative data like actual size of the market you want to serve, prices consumers are willing to pay, and revenue projections, as well as qualitative data such as consumers' values, desires, and buying motives.
In other words, market research data serves as market analysis feed, leading to informed business decisions.
The qualitative perspective of analysis is added to the quantitative market research technique. Market analyses and research may help you guarantee that you are presenting the correct information or product, to the relevant players, at the right time when utilized as a two-pronged instrument, bringing together the advantages of both primary & secondary research.
How to Create a Balance between Market Research and Market Analysis?
As an entrepreneur, your ultimate goal is to bring forth development and good change in all areas, whether brand perception, sales, or anything else.
To accomplish this growth, it is critical to have complete insight into the future direction of your company or brand, which requires knowing as much as possible about your consumers, market, rivals, and other elements particular to your corporate environment.
In the near term, doing a large market study may appear to be a massive effort that will consume your day-to-day company operations. Still, it is eventually important if you want to ramp up your firm and prevent stagnation.
To guarantee that you can focus only on your business, entrust data collecting and analysis to specialised and skilled firms guaranteeing that you receive the best and most dependable outcomes for the amount you invest.
If the market analysis were a park, market research would merely be a swing in it. By this point in the article, the difference between the two must be clear. The bottom line is this: studying your market is crucial. You can’t be left out of this golden game of constantly improving products, services and strategies. Bear in mind that even if you’re not a huge company about to launch a new product into the market, you still collect data on your users – maybe only for tests or heatmap analysis. In today’s SEO-friendly world, there is absolutely no excuse for ignoring market research.
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