Market Research is a systematic, unbiased collection and analysis of data about a particular target market, environment and/or competition.
Market research always includes some form of data collection whether it be secondary research or primary research which is collected direct from a respondent.
The purpose of any market research project is to attain an increased understanding of the subject matter. With digital markets throughout the world becoming more and more competitive, market research is now at the forefront of many organizations minds, whether they are big or small.
There are many benefits to market research. It helps an organization to understand their existing customers, aids the development of marketing strategies, minimizes risk and tracks sales and potential problems. Market research allows you to recognize threats as well as opportunities in the market place while also providing the information on which you can make informed decisions. The more accurate the information, the better the decision. Therefore, market research reduces the risk involved in making these decisions.
Digital communications makes market research better. It’s more accurate and it’s ubiquitous so collecting data is fast. The rise of social media now allows the market researcher to enter the living rooms of consumers to hear what they’re talking about. Rich data collected from social media listening gives firms a very clear picture of the consumer, what’s important to the individual, how they make product decisions and who influences those decisions. Good market research requires experience doing market research, not just studying market research.
There are many challenges facing market research. Survey data can be inaccurate due to issues such as insufficient sample size, poor question wording, inattention to data validity etc. create problems and lead to inexact results from your market research. Modern consumers are becoming progressively more private and suspicious of research organizations asking them questions about their feelings and behaviors. In addition to this, customers are now expecting insights instantly. Computer-delivered surveys and data collection methodologies are on the way out.
In short, you simply cannot have a successful company without having the right data about customers, products and the market in general. Market research is an indispensable management tool for a viable business plan enabling any company to grow and prosper in today’s severely competitive market environment. In the infographic below produced by Surveygoo, we will look at the rapid growth of modern market research methodologies and how digital trends are shaping their future.