Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.
Market research is generally either primary or secondary. In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product this has advantages and disadvantages some of the advantages are that its very cheap and easily accesable but the disadvantages are that its not specific to what you want to find out and can also be biased but that can never be checked. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product. A list of questions that can be answered through market research:
What is happening in the market? What are the trends? Who are the competitors?
How do consumers talk about the products in the market?
Which needs are important? Are the needs being met by current products?
Market research for business planning Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is complete it can be used to determine how to market your specific product.For starting up a business there are a few things that are important:
Market information: Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats.Examples of market information questions are:
Market segmentation:Market segmentation is the division of the market or population into subgroups with similar motivations. Widely used bases for segmenting include geographic differences, personality differences, demographic differences, use of product differences, and psychographic differences.
Market trends:The upward or downward movements of a market, during a period of time. The market size is more difficult to estimate if you are starting with something completely new. In this case, you will have to derive the figures from the number of potential customers or customer segments. [Ilar 1998] But besides information about the target market you also need information about your competitor, your customers, products etc. A few techniques are:
Feasibility Study:It is a preliminary study undertaken to determine and document a project's viability. The term feasibility study is also used to refer to the resulting document. These results of this study are used to make a decision whether to proceed with the project, or table it.
In a changing market, staying competitive often requires developing new products and services or improving existing ones. Whether you are trying to determine new product design, measure market validation, or assess existing products, market research is an essential tool that increases your chances for success.
Why choose ARS MARKET Research for your study?
At ARS MARKET Research, we are well known for our expertise in testing people’s receptiveness to new products, ideas, concepts and features. In addition to more traditional approaches, we expertly implement leading-edge conjoint analysis tools. This methodology is highly effective in defining optimal feature bundles or best-pricing strategies for emerging products or services and line extensions.