The term market research refers to the process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service.
Research may be conducted in-house or by a third party that specializes in market research. It can be done through surveys and focus groups, among other ways. Test subjects are usually compensated with product samples or a small stipend for their time.
Types of Market Research.
There are different type of market research
- Primary research: This type of market research is conducted when you are looking for information from a particular set of customers. The only thing, you are directly reaching out to them! This is mostly done with the help of surveys or with focus groups. The best part, since the data is created by you, the data collection is yours.
- Secondary research: Usually a market research firms conducts surveys and research to collect data which can be used to analyze new markets, or even product market fit. Since the raw data has been previously collected, its the market research firm that owns the data set.
- Qualitative research: In this method, you collect and analyze non-numerical data to acknowledge a concept, opinion or even customer experiences based on the market analysis.
- Quantitative research: The process of collecting numerical data that can be used to find patterns, and missing gaps is what is known as quantitative research.
- Customer research: Want to understand what your customer likes or prefers? This market research method helps to understand what works for particular customer segments. This market research takes into account customer satisfaction, customer loyalty, and even historical data points to help you improve sales volume.
- Competitor research: Most marketing teams conduct competitive analysis to gauge the strengths and weaknesses of their competitors. This helps to gain insights into product, sales and marketing tactics and adopt marketing strategy that works best!
- Brand research: Curate your brand’s value with brand research. This type of market research will help you understand who knows your brand, what is the general perception of the brand, and customer loyalty towards the brand.