What is market research and why is it so important?

 min read

Market research is a big topic which isn’t always easy to understand. So here is a blog post that answers all those questions in one place.

Market research is a big topic which isn’t always easy to understand. So here is a blog post that answers all those questions in one place.

  1. What is Market Research?

Market research is a systematic process of analyzing the market for a product or service. It is a way to find out what people like and dislike about the product or service, how they use it, and what features they would like to see in future versions.

  1. Why do Market Research?

The main reason for doing market research is to find out how your target audience feels about your product or service. You want to know whether they will be interested in buying it, and if so, how much they are willing to pay for it. This will help you decide whether you should go ahead with the project or not.

  1. How do I do Market Research?

There are two main ways of doing market research: qualitative and quantitative analysis. Qualitative analysis involves talking to people about their opinions on the product or service and asking them questions about their preferences, needs and requirements. Quantitative analysis involves collecting data from questionnaires, focus groups and interviews with statistical analysis of the results.

  1. How long does it take?

Market research can take anywhere from a few days to several weeks depending on how much information you need and how many people you need to interview/survey/interview etc... It's best to start early so that you have enough time to analyze all the data properly before making any decisions based on it.

  1. What tools do I need?

You will need a way to collect the data from your research. This can be done by using a survey form, an interview script or a questionnaire. You will also need some way to analyze the data you collect. This could be done by hand or with the help of a computer program such as Excel or Google sheets .

  1. What should I do with the results?

Once you have collected and analyzed your data, you should present it in some kind of report format so that it is easy to read and understand. You should also include any recommendations you have for improving the product or service based on your findings.

  1. How much does it cost?

Market research can be quite expensive depending on how much information you need and how many people you need to interview/survey/interview etc... It's best to start early so that you have enough time to analyze all the data properly before making any decisions based on it.

  1. What are the different types of market research?

There are three main types of market research: primary, secondary and internal. Primary market research involves collecting data from your target audience directly. This can be done by using a survey form, an interview script or a questionnaire. Secondary market research involves collecting data from sources such as books, journals, articles and reports. Internal market research involves collecting data from within your company such as sales records, customer feedback and sales figures.

  1. What are some examples of Market Research?
  • A market research company doing a survey to find out what people think about a new product.
  • A company asking its employees / customers / suppliers for their opinions on a new product.
  • A company doing a survey to find out what people think about its customer service / website / products / brand / competitors.
  1. What are some examples of Market Research Tools?
  • A survey form.
  • An interview script.
  • A questionnaire.
  • Focus groups.
  • Questionnaires.
  • Interviews.
  1. What are some examples of Market Research Techniques?
  • Observation - Watching people use your product or service in their natural environment to see how they use it and what problems they have with it. This can be done by watching people in a focus group or by watching them in their own homes/offices etc... This is a very effective way to find out what people like and dislike about your product or service and how they use it, but it is quite expensive and time consuming so you need to be careful not to waste too much time and money on something that isn't going to give you any useful information!
  • Questionnaires - A questionnaire is a list of questions that you ask people to answer. You can either hand the questionnaire out in person or send it to them by email.
  • Focus groups - A focus group is a group of people who are asked questions about their opinions on a product or service. The advantage of focus groups is that they are cheaper than questionnaires and interviews, but the disadvantage is that you have less control over the results because there will always be some people who don't want to participate in the discussion for one reason or another.
  • Interviews - An interview is a one to one discussion between you and an individual about their opinions on a product or service. The advantage of interviews is that you have more control over the results because you can ask follow up questions if someone doesn't answer your question properly, but the disadvantage is that they are more expensive and time consuming than focus groups.
  • Online research - You can use online tools such as Google Trends, Google Insights for Search etc... to find out what people are searching for online, what they’re concerned about, what are their needs, and what information is available to them.
  • Online focus groups - You can use online tools such as UserTesting.com to find people who are willing to come into an online focus group and answer your questions about your product or service.
  1. What are some examples of Customer Segmentation Techniques?
  • Demographic segmentation - Demographic segmentation is based on the characteristics of the people who buy your product or service, for example their age, gender, location etc... The advantage of demographic segmentation is that it is easy to do because you don't have to do any research into the needs of the different groups that you create, but the disadvantage is that it doesn't take into account any other factors such as their needs or their buying habits.
  • Psychographic segmentation - Psychographic segmentation is based on the personality traits of the people who buy your product or service, for example their attitudes towards life, their values etc... The advantage of psychographic segmentation is that it takes into account more factors than demographic segmentation does, but the disadvantage is that it can be more difficult to do because you have to do some research into the needs of different groups before you can create them.
  1. What are some examples of Customer Segment Attractiveness?
  • Market share - The market share of a particular segment is the percentage of people in that segment who buy your product or service. The advantage of market share is that it is easy to measure and it gives you an idea of how attractive a particular group is, but the disadvantage is that it doesn't take into account any other factors such as the profit you make from each sale or the growth potential of each group.
  • Growth potential - The growth potential of a particular segment is how much that segment will grow in size over time. This can be measured by using things like surveys, focus groups etc... to find out how many people in each group want to buy your product or service in the future. The advantage of growth potential is that it takes into account more factors than market share does, but the disadvantage is that it can be more difficult to measure and you need to do some research before you can find out how much each group will grow.
  1. What are some examples of Customer Segment Attractiveness Factors?
  • Profit per sale - The profit per sale for a particular segment is how much money you make from each sale in that group. This can be measured by using things like surveys, focus groups etc... to find out what price people are willing to pay for your product or service and then using this information to calculate your profit per sale.
  • Growth rate - The growth rate for a particular segment is how quickly the number of people in this group will increase over time. This can be measured by using things like surveys, focus groups etc... to find out what percentage increase there will be in the number of people who want your product or service next year compared with this year.
  • Market size - Market size refers to how big a particular market (or industry) is and therefore how many people there are who might want your product or service at some point in the future! You could use tools such as Google Trends etc... to estimate this information if necessary! The advantage of market size factor is that it takes into account more factors than profit per sale or growth rate do, but the disadvantage is that it can be very difficult and expensive (or even impossible!) to measure accurately!