Market Research definition: how it works
Are you an entrepreneur or a manager? Then you should know how crucial it is to make the right choice for your company! These decisions can be facilitated by knowing the definition of market research.
Effectively investing resources it’s important not to lose market share and to take the lead with competitors.
So, how to reduce errors and make good decisions?
Using market research.
Market research definition: the basis
Market research is the systematic collection of data related to marketing issues carried out by using market research tools.
But, what type of information can market research provide you with?
- Understand your target market and ideal customer
- Gather information of a new market where you’d like to distribute your product
- Analyze the market where your company works in real-time
- Analyze your customer satisfaction
- Monitor any “hidden request” in the market and develop a product/service to answer that
Market research tools can be your friend to develop a prosperous business and to keep it that way over time. But how can you get significant data to make better marketing decisions for your company?
Market research definition: Quantitive and qualitative data
Once the goals are set, researchers have different options to collect data. In fact, you can use two different types of market research: quantitative and qualitative.
Quantitative data are often numerical and they require a lot of work both during collection and analysis. To be significant the sample needs to be numerous and questions have to be structured in the same way for all users.
An example: Sky wants to analyze the satisfaction of Sport pack users surveying its customer. Respondents can express their satisfaction through adjectives like Very Satisfied, Satisfied, Dissatisfied, Very Dissatisfied. Once the data are collected, they need to be statistically analyzed to know the level of satisfaction of the users.
Qualitative data are useful to know how or why something happens in your company. Questions are de-structured and give to the researcher the possibility to range from one topic to the other.
An example: Procter & Gamble has just designed a new beauty product for women. Researchers organize a focus-group with people who tested the prototype to see how the target consumer reacts to the product.
Understanding market research and taking the right decision
Qualitative and quantitative data are really important but they’re not enough. It’s their analysis that makes them useful for the company.
You can conduct market research by yourself using a professional survey software. In this case, select a market research tool that can help both in the collection and the analysis phase so to improve your business insights.
The alternative is to get in touch with a research agency that can conduct market research for you and provide you with the insights.