Market research is a process that determines the demand and viability of a new product or service through directly conducted research with potential customers. Companies conduct market research to discover the target market and collect customers' opinions and feedback about their products or service. It helps companies in determining the performance of their products or services in the real world. Market research is a key component of the research and development stage and a vital aspect leading to the organization’s success and growth. It is vital for businesses to conduct market research because it helps in developing brand loyalty and customer satisfaction. Strong market research is significant to identify the key demographics and market segments that are likely to consume a given product or service, as a product will not equally appeal to every consumer. Based on the market research companies can accordingly prepare their marketing strategies, for example, if the company determines that their customers commonly use Facebook, then they can advertise their products on this particular platform only. Similarly, if a company discovers that its customers are more quality-conscious rather than price sensitive, then it can work to improve the quality of its product.
5 Popular Market Research Processes
Mentioned below are the 5 popular types of market research services
Market Survey – A market survey is the most commonly used market research process, which is an easy and simple way to understand the target audience. A market survey is a tool that directly collects feedback from the target audience to get to know about their requirements, expectations, and characteristics. It also includes the study of various customer capabilities like their buying potential and investment attributes. It is a type of quantitative research in which respondents are asked a series of questions (generally option based) that helps in collecting data related to the target market. It collects data such as customer requirements, competitor analysis, pricing trends, and some other similar details.
Qualitative Interviews – Interviews are undoubtedly a highly pervasive way of collecting data in a qualitative market research project. Companies conduct interviews that are usually a dialogue between a researcher and one or more informants. This further helps to collect and analyze data and the researcher makes use of unstructured questioning techniques to gain actionable insights. The qualitative interview goes beyond basic metrics and statistics and provides insight into how customers feel about various brands and why, which helps companies grasp customers’ sentiments. This helps them provide a better overall experience to their customers. Qualitative interview market research is an ideal way to make insight-driven decisions, as this market research method help in adopting a better and more refined approach toward customers' needs and preferences.
Secondary Research – Secondary research is a market research process in which data and insights are not collected by the companies but the data and information are readily available. The company makes use of those data and insights to gather information and draw meaningful insights in a short duration. For drawing meaningful conclusions, companies can search on the Internet or can even buy published reports from an analyst or research firm and they may even have access to secondary research sources within their organizations. The data for secondary research can be sources from a variety of channels including, internal sources like in-house research or external sources like the internet, and government statistics. Researchers in secondary research collect, verify, analyze as well as incorporate the insights to accomplish their research goals.
Focus Groups - It is a market research method in which a group of six to ten people in a room are asked to provide feedback regarding a product, service, marketing campaign, or concept. This type of market research is conducted by a trained modulator that organizes thirty to ninety minutes of discussion within the group to collect vital insights. The moderator comes prepared with a set of ten to twelve questions that are shared among the group. The questions are designed in a manner to stimulate thoughtful and meaningful responses from all the participants. The aim of the moderator is to hear everyone in the group and encourage all to share different opinions and ideas. It is a low-cost and easy-to-conduct market research process that generates quick results and more accurate information is collected, as it is in respondents' own words. The objective of the focus group is to collect qualitative feedback from a group of people on a specific product or concept to gain insights into consumer behavior and gain a better understanding of consumers.
Mystery Shopping - It is a market research type in which a secret shopper acts as a real customer to evaluate the experience of the customer either in-person, over the phone, or online. The professional mystery shopper determines diverse aspects of the customer experience such as levels of service, staff knowledge and helpfulness, product availability, and about establishment cleanliness. This research method is often used for the evaluation of internal operations and can also be executed on competitors' operations. Mystery shopping is a highly flexible market research method that can be conducted in-person, online, or even over the phone depending on the company’s objective. Organizations make use of this type of market research process to evaluate the competition and gain access to information that can be availed only by customers or prospects.
How The India Watch can help you in your market research Requirements?