Market research is the practise of actively interviewing potential consumers to determine the feasibility of a new service or product. Market research enables a business to identify its target market and obtain comments and other input from customers about their interest in a product or service.
This sort of research can be done in-house, by the company, or by a market research firm that specialises in the field. Surveys, product testing, and focus groups may all be used to accomplish this. For their time, test volunteers are frequently provided with product samples or a small stipend. Market research is an important part of a new product or service’s research and development (R&D).
The Purpose of Market Research
The goal of market research is to examine the market for a certain product or service in order to determine how the target audience will react. This can involve data collection for market segmentation and product differentiation, which can be used to design advertising campaigns or decide which characteristics are most important to customers.
To finish the market research process, a company must do a number of tasks. It must collect data based on the market segment being investigated. The company must examine and understand the generated data to see if there are any patterns or important data points that can be used in decision-making.
How Does Market Research Collect Data?
Market research combines primary information obtained by the company or a person employed by the firm with secondary information gathered by an outside source.
Data from the source
Data acquired directly by the corporation or by a person or company engaged to perform the study is referred to as primary data. Exploratory and targeted research are the two types oof information available.
Exploratory research is a less structured method that uses more open-ended inquiries to generate concerns or issues for the organization to solve. Specific research identifies solutions to previously identified problems that are frequently raised during exploratory research.
Secondary sources of information
Secondary data is information that has previously been obtained by a third party. This can include population data from government census data, research reports from trade associations, or presented research from another company in the same market sector.
Market Research’s Development
In the 1920s, Germany was the first country to do formal market research.
During the advertising boom of the Golden Age of Radio, market research took off in the United States about the same time. Companies that advertised on the radio began to comprehend the demographics disclosed by the sponsorship of various radio broadcasts