Market research is an attempt to re-discover market understanding about a particular business or product by asking the right questions. Usually these questions are directed at the consumer or customer as they are key players in the market. Customers determine purchasing behavior, patterns and time. Typically market research is done to understand those patterns that exist in a particular market.
Surveys are important in carrying out a market research. A survey is a series of questions critical to the market research. It is often times referred to as a questionnaire. This is the most important element in a market research, if the survey questions asked are not properly structured then the responses would be vague and no analysis can determine the aim of the market research. To get the most out of the market research, the right respondents from the concerned market must answer the survey.
In simplifying this analogy, let us cite a market research example: A PAPER SHOPPING BAG MARKET RESEARCH. Let’s call the PAPER SHOPPING BAG, PSB. First, we are to identify the market for PSB which in this case would be every retail market. In the retail market, it would be worthy to note that there exist already has a shopping bag in use which is the nylon bag hence PSB is a competition. We highlighted initially that we should have a survey. For this example, we are going to have a 5 question survey which is closed ended. (PS: Closed ended questions are not advisable when you want a detailed answer, they are especially not recommended for a market research). These questions are directed to shop owners and customers.
|1.||Do you use nylon bags when shopping?|
|2||Do you prefer nylon bags to paper bags?|
|3||Are paper bags cheaper than nylon bags?|
|4||Do you reuse your nylons bags?|
|5||Do you reuse your paper bags?|
This is an illustration of a type of survey for market research. After the survey questions must have been answered, you must do an analysis of the survey to give an overview by data representation of the survey so as to ascertain the market use of PSB and purchasing behavior of PSB.
Market research follows a particular trend which has been highlighted in the example:
Why do you carry out Market research?
Business and market researchers have identified four primary reasons for carrying out a market research, it is called The Four Ps. These Ps typically characterize the market.
Product: Research is carried out to identify customers’ behavior to your product or service.
Placement: For placement, the research is carried out to evaluate your position against the competition and to ultimately develop strategies to elevate your position if you are lagging or to maintain your standing if you are leading.
Pricing: The price is the king in the market, you would not want to sell below the standard price or above the price hence research around pricing would afford you to weigh certain features you might want to add to your product or service.
Promotion: Market research leads up to marketing which is another word for promotion. Research is always done to determine the best marketing strategy for your product, service or business. This is very crucial.
Market research is more crucial to your business than production. Without it your product might just sit comfortably on your shelf without a return. Carry out a market research today and do it as often as possible.