Definition of Market Research – Methods, Types and Tips to Do It

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Definition of Market Research – Methods, Types and Tips to Do It

At present, consumers have a lot of strength – they can examine your products or services and make a fully purchasing decision itself. And rather than talking with one of your sales agents, they are more likely to ask for references from their closest friends or people or read online reviews.

With this in mind, have you adjusted the marketing strategy to complement the way consumers are currently researching, shopping, and buying?

To do that and to meet prospective buyers, you must have a deep understanding of who your buyers, your specific market, and what affects the purchasing decisions and behavior of your target audience and you need market research.

Definition of Market Research

Market research is defined as the process of evaluating the feasibility of a new product or service, through research conducted directly with potential customers.

This method allows an organization or business to locate their target market, collect and document opinions and make the right decision. Research can be done directly by the organization or company or can be outsourced to agencies that have expertise in this process.

Market research process can be done by distributing the survey, interacting with a group of people who are also known as samples, conducting interviews and other similar processes.

The main objective is to conduct market research to understand or check the market associated with certain products or services, to decide how the audience will react to a product or service. Information obtained from conducting market research can be used to adjust the activity of the marketing / advertising or to determine what the priorities of the features / requirements of the service (if any) of the consumer.

Methods and Types of Market Research

Whether an organization or business would like to know the consumer purchasing behavior or the likelihood that consumers pay a certain fee for a product, market research helps in drawing conclusions and meaningful data.

Depending on the method and type is needed, here are some of them:

Primary Market Research (Combination of Qualitative and Quantitative Research)

Primary market research is a process in which an organization or business is related to the final consumer or employ a third party to conduct relevant studies to collect data.

The data collected may include qualitative data (data non-numeric) or quantitative data (numerical data or statistics).

While doing research primary market, one can collect two types of information: Exploration and Advanced.

Exploratory Research is open, where issues are explored by asking open-ended questions in a detailed interview format usually with a small group of people who are also known as samples.

Here the sample size is limited to 6-10 members. Specific research, on the other hand, is more precise and is used to solve the problems identified by exploratory research.

As mentioned earlier, the primary market research is a combination of qualitative market research and quantitative market research. Qualitative market research studies involving semi-structured data or unstructured collected through qualitative research methods that are commonly used such as:

  • focus groups

Focus groups are a qualitative research method that is commonly used. Focus group is a small group of people (6-10) are usually responded to an online survey sent to them.

The best part of the focus group is the information can be gathered from a distance, it can be done without personal interaction with members of the group. However, this is a more expensive method because it is used to gather information about the complex.

  • Interview one by one

As the name implies this method involves personal interaction in the form of interviews, where researchers ask a series of questions to gather information or data from respondents.

These questions largely an open question and submitted by facilitating response. This method is highly dependent on the ability and experience of the interviewer to ask questions that lead to a response.

  • ethnographic research

This type of in-depth research carried out in the natural environment of respondents. This method requires the interviewer to adapt to the natural environment of respondents who could be in the city or a remote village. Geographical constraints can be a limiting factor in doing this kind of research. Ethnographic research can last from several days to several years.

Qualitative research methods used by the organization to conduct market research using a structured online surveys, questionnaires and polls to get statistical insight to make the right decision.

Once done using pen and paper. But now has evolved into a structured posted an online survey to respondents to gain actionable insights.

Researchers tend to use the platform and technology-oriented modern surveying and designing surveys to compile them in order to generate maximum response from the respondent.

Through a well-structured mechanism, data easily collected and reported and the necessary actions can be taken with all available information directly.

Secondary Market Research

Secondary market research using information managed by external sources such as government agencies, media, chambers of commerce, etc. This information is published in newspapers, magazines, books, websites of companies, government agencies and non-free and so on. A secondary source utilizing the following:

public sources

Public sources such as the library is an incredible way to gather the information for free. Government libraries usually offer a free service and a researcher to document the information provided.

commercial sources

Although reliable commercial source, the price can be very expensive. Local newspapers, magazines, journals, television media is a good commercial source for gathering information.

Educational institutions

Although not a popular source of information gathering, most universities and educational institutions is a rich source of information for many research projects carried out there than any business sector.

Tips for doing market research for business

1. Determine your research goals.

Before starting research search, think about what you want to achieve next with your business. Do you want to increase traffic to your location? Or increase sales? Or change customers from buyers once to become a fixed customer?

Knowing your goals will help you adjust the rest of the research and marketing material for future business. Having a purpose for your research will enhance the type of data you need to collect.

2. Learn About Target Your Customers.

The most important thing to remember is that your business serves specific types of customer. Defining specific customer you have many advantages such as enabling you to understand what kind of language used when drafting marketing materials, and show how to build relationships with your customers.

When you take the time to determine target customers, you also can find the best products and services to sell to them.

You want to know as much as possible about your targeted customers. You can gather this information through observation and by examining the types of customers who frequently visit your type of business.

For starters, you need to know is their age and income. What is their job? How marital status and education level are they?

3. Realize that knowing who you serve helps you determine who do not serve.

Let us take the example of a business. You plan to open a fancy steak restaurant that focuses on meat-based diet, you instantly know that you do not want to draw attention to vegetarian or dieters. Armed with this information, you can make better marketing message that speaks to your target customers.

It does not matter to decide who are not part of your target customer base. In fact, for small businesses that do not know who you are serving can be crucial in helping you develop.

Why? Simple, if you are small, the business benefits are you can connect deeply with tertentu.Anda market segments want to focus your efforts on the right customers to spend money on your marketing costs.

If you’re putting himself by trying to be everything to everyone, you will only weaken the core message of your marketing process. Instead, keep your focus on your pelangga targets. Determine, to learn more about, and you will be able to figure out how best to serve them with products and services.

4. Learn from your competitors.

It serves traditional business and online business as it allows you to get into the position of customers and open up a new perspective on your business. Take a look around the internet and your city. If possible, visit your competitors’ stores. For example, if you have a restaurant that specializes in the field of cuisine, eat in the restaurant other fields in your neighborhood or in a small town next.

When you build a business from the customer’s perspective, looking for what to do with right and wrong.

Can you see areas that need attention or repairs? How do you run things as a comparison? How is the quality of their products and customer service? Whether customers here happy?

Note also their market segments. Is their customers the same kind of people who spend money with you? By asking these questions and do research directly, you can dig up a lot of information to help you determine your unique selling position and make a better offer to your customers.

5. Create your target customers are open and tell you everything.

Good customer survey is one of the tools most valuable market research because it gives you a chance to understand the mind of your customers.

However, remember that some of the feedback may not match what you expect, so suppose criticism as a learning tool to point you in the right direction.

Make it simple survey. Ask questions about what you think your customers are doing right, and what could be improved.

You can also ask them to let you know what kind of products and services that they want to add, that gives you a tremendous insight on how to better monetize your business.

Many customers are happy to offer feedback. You can even give customers who filled out a survey prizes such as special coupons for future purchases.

Efficient market research benefits

Make informed decisions well

Organizational growth depends on the method of decision made by management. By using market research techniques, management can make business decisions based on the results obtained that support their knowledge and experience.

Market research helps know the market trends, therefore do it often to get to know customers thoroughly.

Getting accurate information

Market research provides a real and accurate information that will prepare the organization for any accidents that may occur in the future.

By studying the proper market, business undoubtedly will take a step forward, and because it will utilize existing competitors.

Determining the size of the market

A researcher can evaluate the size of the market that should be covered when selling products or services for profit.

Choosing the appropriate sales system

With market research you can choose the right sales system in accordance with market demand, and according to product / service can be positioned in the market.

Learn about customer preferences

It helps to know how the preferences (and taste) the client is changed so that the company can meet the preferences, purchasing habits, and income level. Researchers can determine the type of product to be manufactured or sold based on the specific needs of consumers.

Collects details about customer perception of the brand

In addition to producing information, market research helps researchers understand how customers perceive your organization or brand.

Analysis of customer communication methods

Market research serves as a guide for communication with current clients and potential clients.

Productive business investment

This is a great investment for any business, because thanks to good market research, they gain invaluable information, they show researchers how to follow the right path and reach the necessary sales.

Conclusion

Market research is one of the most effective ways to gain insight into customer base, competitors, and your overall market.

The purpose of doing market research company is equipping you with the information you need to make the right decision.

This is very important especially when a small business trying to decide whether to run a new business idea, want to move into a new market or launching a new product or service.

Make sure your business also make the process of recording transactions and bookkeeping well so you can get a holistic view of your business finances.

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