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Optimum Guide to Market Research

Published on Jul 01, 2022

More than doubling in size from 2008 to 2021, the market research sector
brought in over $76.4 (Statista) billion worldwide in 2021.  

What is Market Research?

Market research is the process of gathering, analyzing, and interpreting
information about a market, about the product or service to be offered for
sale in that market. It is also about the previous, current, and potential
customers for the product or service. 

Data collection, analysis, and interpretation are the three main steps in
any successful market research project. The data could pertain to a
certain demographic, general consumers, rival businesses, or the entire
market. This is the cornerstone of any thriving business. The findings can
be used for anything from discovering a fresh opportunity to entering the
market to developing an entirely new product or service. 

Small business owners can benefit greatly from conducting market

research. It can eliminate uncertainty in the creative process and direct
energy and funding toward the most promising ideas and initiatives.
Many types of market research are conducted by businesses at many
different stages. 

Market Research for Businesses  

Accurate and comprehensive data gives a plethora of information on
potential and existing customers, competitors, and the industry as a
whole, making it the bedrock of any successful commercial endeavor. It
helps entrepreneurs weigh the odds of success before sinking a lot of
money into a new firm. 

An essential aspect of every successful business plan is conducting

market research to gather data that can be used to address potential
marketing obstacles. In reality, it is not viable to develop tactics like
market segmentation (identifying distinct groups within a market) and
product differentiation (establishing a unique selling proposition for a
product or service that distinguishes it from the competition) without
conducting market research. 

Types of Market Research  

1. Quantitative research 
The results of quantitative studies are typically presented using
numerical and graphic representations. It's the gold standard for verifying
or disproving hypotheses. It is possible to establish broad, overarching
truths about a subject by conducting this kind of study. Experiments,
numerically recorded observations, and surveys with a limited number of
predetermined answer choices are all examples of common quantitative
approaches. 

2. Qualitative research 
Words are the currency of qualitative inquiry. It's a tool for making sense
of things like ideas and experiences. Using this method, you can learn
more about a topic from every angle, which is very useful for researching
controversial or poorly understood subjects. Open-ended interviews,
written descriptions of observations, and in-depth analyses of the existing
literature are all examples of common qualitative techniques. 

Qualitative vs. Quantitative Research 

Quantitative research focuses on numerical and statistical facts, while
qualitative research examines concepts and interpretations. Both are
necessary to learn various things. Comparatively, qualitative research
draws its conclusions from interviews and documents rather than
statistics and reasoning. Quantitative studies typically report their findings
numerically or graphically, while qualitative studies report their findings
verbally. 

3. Primary Research 
Primary data refers to a study that seeks to collect firsthand information
from real-world participants. Primary research is data collected by the
researcher themselves through various techniques of approaching the
target audience directly. You have full legal and ethical rights to the data
set you to create. Primary research can be challenging due to the time,
money, resources, and familiarity with the topic that it demands. 

4. Secondary Research 
Secondary research is a study that is done after primary research has
already been conducted, and it consists of analyzing, interpreting, and
summarizing the results of the primary research. A more precise definition
of secondary research would be any study that makes use of publicly
available data. When conducting secondary research, scholars refer to
information that has already been gathered, processed, and made public
(and therefore, you do not own this data). Since the accessible data has
already been evaluated and interpreted, the researcher just needs to
determine the data he wants to use, i.e., the data that is necessary for his
project. 

Primary Research vs. Secondary Research

Research that involves the collection of new information, or "primary"
research, is distinguished from secondary research by the fact that it is
conducted for the first time on a particular topic. Instead, secondary
research makes use of information that has previously been gathered
through primary research. The fundamental dividing line between primary
and secondary research is whether the research has been done before. 

5. Market Research 
Market research on branding can help a business develop, launch, and
sustain its brand. This may involve the firm's ethos, branding, visuals,
ideals, or very name. Interviews, focus groups, and surveys are all viable
options for conducting research. 

6. Customer Research 
Market research on customers is learning what factors most strongly
affect your demographic of interest and what adjustments may be made
to better attract and retain them as paying customers. The objective of
this study is to acquire an intimate understanding of your consumer base
and their habits and preferences as they relate to your business. 

7. Competitor Research 
Conducting market research on your competitors entails learning about
their businesses and assessing how they stack up against your own. Your
competitive product in the market or how to break into a new market
could also be a topic of discussion. The study's overarching goal is to help
your company prepare for the future by identifying methods to set itself
apart from competitors and by learning from customers' opinions and
suggestions. 

8. Product Research 
Conducting market research on your items is essential to ensuring they
will sell successfully once they hit the shelves. Finding out how people feel
about your product and if they feel it's valuable and functioning properly
is the goal of this study. The ability to think creatively about
enhancements and new features is another benefit. 

Benefits of Market Research 

According to a survey, the market research business is expected to
increase at a rate of 12-14% (The Economic Times) per year through FY26,
at which point it would have surpassed the $4 billion mark. 

The following is a list of the most important reasons and benefits of

marketing research: 

1. It's
a great tool for boosting companies' standing. The ability to think
critically and act on that thinking is the key to success. You can keep
your business one step ahead of the competition by conducting
market research to expand your knowledge of your market or target
audience. 

2. Reduces the potential for loss on an investment. This is a basic point

to think about, but it is often crucial to the success of a firm. When
starting a firm, it makes sense to spend what amounts to a negligible
amount on research and testing the market, product, concept, or
idea. 

3. Possible
dangers and benefits are highlighted. Insurance against
these two glaring pitfalls lies in both primary research (fieldwork) and
secondary research (desk research). Opportunities or red flags may
be uncovered through the combination of this with qualitative
 research for further investigation. 

4. You can learn more about the advantages and disadvantages of your
own business and of your competitors. To achieve entirely objective
reporting, it is generally recommended to collaborate with a market
research agency. Take advantage of what you've learned from study
to improve in areas where you're weak and to gain an edge over the
competition. 

5. Strategic preparation is helped by this. Where do you stand with the

core principles of your company plan? If it's supported by data, and
you've put in the time and effort to do your own (hopefully
continuous) research, you can rest assured that you're giving yourself
the best chance of success in your commercial endeavors. 

6. This aids in the identification of developing tendencies. Being the first,

the best, or coming up with the idea that nobody else has is typically
what it takes to stay ahead in business. Taking the pulse of your
industry on a regular basis is an important habit. You can learn more
about the tools available to you to identify and capitalize on these
trends by consulting with a research firm or expert. 

7. Helpful for firms in keeping up with the competition. Being the best
calls for an insatiable need for knowledge and a propensity to
experiment. The key to success, and the ability to maintain that
success, is knowing how to effectively apply the information gleaned
from market research, audience research, and data research. 

8. It includes forecasts for future income. One of the most important

parts of any market study is a forecast, which looks into the future and
predicts the size, makeup, and trends of the market you're interested
in. This allows for the categorization of prospective clients. You should
prioritize the market that is the best fit for your business rather than
the largest or fastest-growing. 

9. It's geared toward meeting the wants and desires of its patrons. Many
things in business, including research, benefit from keeping clients
front and center. By reaching out to individuals through online panels,
web forums, telephone surveys, in-depth interviews, and focus
groups, market researchers can learn where their business's ideas,
 services, and products can be strengthened. 

10. Usingthis method, one can measure the progress of one's company
against predetermined standards. Utilize data gathered from the
market to study the competition, gauge employee enthusiasm,
identify knowledge or skill shortages, and identify development
opportunities. This will allow you to consider novel approaches, ideas,
and resources for boosting your company's efficiency. 

Market Research Tools 

In order to better understand your market and target audience, you need
to use market research techniques. It's fundamental to every company's
success, and in today's more crowded marketplace, a thorough
familiarity with your target market is more important than ever. Good
news: you don't have to be an "insights genius" to get started collecting
the data you need, owing to the proliferation of market research tools.
Some of the best and most widely-used methods of market research
include: 
 1. Answer the Public 

2. Attest 

3. Google Trends 

4. Social Mention 

5. Remesh 

6. Heartbeat Ai 

7. Think With Google 

8. Spyfu 

9. Latana 

10. BuzzSumo 

11. Statista 

12. Typeform 

13. Otter.ai 

14. Dimensions.ai 

15. Yelp 

How to Conduct Research for Your Business:

Market Research Strategies 
Despite their different objectives, market research and marketing
research should use the same framework for gathering and analyzing
information about your company's target audiences. These help in
primary research as well as secondary research.  

Clearly identify the problem at stake. Establish an initial research topic.

Having a clear research question in mind will allow you to better organize
your findings. 

Start by figuring out your financial and time constraints. How much
money do you have to put into your study? When do you anticipate
finishing data collection? Research, like any other tactic for expanding
your company, should be carried out within your means. Nonetheless, it
may be worthwhile to spend more money to receive the most
comprehensive results available, especially if the questions you are
answering are time-sensitive. 
Planning your approach and requirements. Find out what information
needs to be gathered and figure out how to get it. Observation, surveys,
phone calls, and focus groups are among the alternatives. Consult a
professional research agency if you are unsure of how to organize your
data collection. 

Pick a way to sample the data. I need to know how you plan on picking
people to take part in your study. You may require a cross-section of the
consumer population at large, a subset of the population who share a
particular characteristic of their way of life, or just the opinions of those
who are already familiar with your brand. Develop a plan for tracking
down and contacting the persons who will take part in your research. 

Prepare a data analysis strategy. Think about the methods you'll use to
examine the data. Do you require numbers for statistical analysis, or can
you get a sense of things from qualitative, observable data? Spend some
time learning about the many types of analysis so you can pick the one
that will yield the most useful results for your study. 

Gathering information. The next step is data collection, which may begin
once you have settled on a research question and developed a strategy
for answering it within the bounds of your time and money. Research is
often outsourced to professional firms or consultants by many
corporations. 

Examining the information. It is important to apply certain methods of

analysis to make sense of your data, no matter how simple it may appear
at first. Which analytical techniques you employ are most suited to your
data is a function of the information you've gathered. Also, this is the time
to double-check for any mistakes that might have crept into your data
gathering, analysis, or sampling. 
Make the report you need. Concluding your research with a written report
is the next to last stage. From formulating a problem statement to
discussing the findings of your data study, your report should include it
all. 

Why is Market Research Important?

Over 44,000 businesses across the United States provide some form of
market research. Their total annual income is around $23 billion
(QuestionPro).  

The importance of Market Research is following -  

1. Identifies new products or services

By conducting market research, a business can learn what consumers
want and how to best meet their demands. Identifying the major
challenges associated with creating a product or service can help you
save money. It's useful for figuring out what customers value most and
how to implement that into your product or service offering. 

2. Identifies potential customers

You may learn more about your clientele by analyzing demographic
information like their gender, age, income, occupation, and interests. You'll
have a better idea of who to target with your future advertising efforts if
you have a clear picture of your current clientele. When a product is
marketed to the wrong demographic, sales suffer. 

3. Establishes viability of a product or service

If your organization is considering introducing a novel product or service
to consumers, you should find out if there is a need for it. Do people need
this product? Do the people you plan to sell to actually want this product?
Does it have any chance of succeeding, and does it even have a chance
of being a viable trend? 

4. Anticipates and discovers future market trends 

If you are familiar with your market and the tendencies that are just
beginning to emerge, you will be better prepared to build tactics to
combat any negative tendencies that may threaten your company. As a
result, you can use rising tendencies to your advantage and propel your
company forward. 

5. Keeps your company ahead of competitors

Examining your company's performance in relation to that of its rivals is a
prime use for comparative research. If they're much ahead of you, it's a
fantastic chance to figure out what you're doing wrong. It is possible to
devise business plans that will help you surpass the competition. 

6. Decide the best marketing strategy

Conducting research is helpful for pinpointing the optimal distribution
platform for reaching your target audience. If you find out that a large
portion of your audience prefers one form of communication over
another, it makes sense to concentrate your efforts there. Because of the
scarcity of these resources, it only makes sense to direct them toward
endeavors with a high probability of success. 

7. Reduces risk and increases profitability

The ability to assess the value of potential risks in light of past
performance and anticipated future market behavior is a crucial business
skill. The success or failure of a business idea depends heavily on the
results of market research. Understanding your consumers and their
habits is another crucial step in risk reduction. Taking less risk leads to
greater financial rewards. 

8. Identifies threats and opportunities

The SWOT analysis is likely familiar to many of you. The acronym SWOT
refers to a company's "strengths," "weaknesses," and "All four of them can
be figured out with the use of market research. While a lot of data can be
collected through market research, not all of it needs to be used. Use only
information that is directly related to your major objective (which you will
have established in advance). 

9. Helps to understand existing customers

By conducting market research, you can learn more about your current
clientele. Because of this complexity, you can't assume that you know
what your clients require. If you want to be successful, you need to take
the temperature of your clientele on a frequent basis. Satisfaction levels
among customers can also be measured with the help of surveys. You
can find out what is bothering them and make adjustments if necessary.
If they are already rather high, you can examine the factors that led to this
success and implement changes to maintain it. 

10. Assists in realistic goal setting

Goals that are more realistic can be established with the support of up-
to-the-minute information on your market and customer base. Knowing
what to expect and how to realistically expand growth over time is greatly
aided by establishing a growth pattern throughout time. Setting
objectives that are too lofty will cause you to waste time and energy
trying to achieve something that is impossible. 
How Efficient is Market Research? 
You should only invest time, energy, and money into market research if
you expect to see a favorable return on that investment. Because it is so
worthwhile, market research continues to play a significant role in the
success of any organization. Market research won't ensure your
company's success on its own, but it will arm you with the data you need
to make the moves that will. 

Many of the advantages of this type of study were examined, but the
drawbacks were also taken into account. If you don't conduct market
research, you run the danger of losing clients to the competition, missing
out on growth prospects, being more susceptible to hazards, making bad
business decisions, and more. Some companies succeed without first
doing their homework, but those situations are unusual. To build your firm
and avoid typical errors, conduct market research. 

Market Research Methods  

Although there are a variety of approaches to conducting market
research, the majority of companies opt to utilize one of the following five
fundamental approaches: surveys, focus groups, personal interviews,
observation, and field trials. Which strategies you decide to implement for
your company will depend on the kinds of data you require as well as the
amount of money you are ready to pay. Some of the major methods of
market research are following - 

1. Surveys 
Surveys ask participants questions. They can use numerous survey
methods. Surveys are a cost-effective technique to collect data for study.
Written surveys may encourage truthful responses since participants feel
like they're speaking privately. 

2. Discussions 
Focus groups are moderated discussions. Companies assemble
consumers to conduct focus groups, pose questions, and record replies.
Participants' replies may reveal what consumers want in a firm or a
product because they represent a broad group. Focus groups offer longer
participant interaction than surveys. 

3. Interviews 
An interview combines focus group and one-on-one survey aspects. It
includes recording one participant's comments at a time. Open-ended
questions elicit in-depth answers from the interviewee. Researchers can
ask follow-up questions and let interviewees ask their own. 

4. Social media listening 

Social media users routinely discuss corporations and their products.
Researchers can search for discussion topics and measure consumer
sentiment through social media listening. 

5. Observations 
Observation in market research means studying how consumers shop.
Filming shoppers in a store and studying their shopping habits is
common. This strategy can reveal their natural selves if they are ignorant
of the observation. 

6. Experiments 
In a field trial, a corporation lets participants use a product under typical
conditions and collects data. Participants' feedback was used to improve
the product. 

7. Competitive analysis 
Competitive analysis is a secondary market research process where
companies acquire and analyze competition information. It entails
identifying primary and secondary rivals and analyzing their offerings,
revenues, and marketing methods. 

8. Statistics 
Public data entails seeking and evaluating public market data. This
research is often free online or in libraries. Research centers, polls, or
government databases may provide this information. Public data is often
used to confirm or compare primary market research. 

9. Purchased data 
Companies without the time or resources to perform their own market
research can buy it. Several market research companies sell database
subscriptions. Small and medium-sized businesses that can't afford
primary market research may benefit from this approach. 

10. Analysis of sales data 

Competition analysis is just one way that may be used in tandem with
sales data analysis to show how different business tactics affect revenue.
It can also reveal consumers' buying behavior and consumer trends. 

Functions of Marketing Research  

The following are the main functions of Marketing Research - 

Description: Marketing research details customers. Age, sex, education,

income, etc., are listed. It describes the market and competitors. This
description helps marketing decision-makers and problem-solvers. 

Evaluation: Marketing research evaluates firm performance. It evaluates

production and marketing policies. It measures customer reactions to
product quality, price, packaging, advertising, sales, and promotions. If
consumers dislike the company's policies, they must alter them. It
contrasts company and rival policies. 
Explanation: Marketing research answers all marketing questions. It
explains why sales are declining, why retailers are unhappy, etc. It
explains the problem's causes. It gives a solution. 

Prediction: Marketing research forecasts. Predictions are future forecasts.

It predicts sales, market prospects, dangers, marketing environment,
customer behavior, etc. All predictions may be wrong. Predictions help the
organization create plans and policies. It helps seize possibilities. It
prevents future hazards. 

Decision Making: Marketing research aids decision-makers. It gives

decision-making data. Decision-making involves choosing between
options. Decision-making requires accurate data. MR helps the marketer
decide. It gives decision-making data. It offers alternatives. It compares
each option's pros and cons. It helps marketing managers choose the
right action. 

Conclusion 
The world's markets are changing at a dizzying rate, making it more
important than ever for companies to adapt quickly enough to be
competitive. One method is to conduct market research. The results of
your market research and analysis will provide you with a thorough
understanding of your target audience's wants and needs, as well as your
competitors' strengths and weaknesses. 

The key to making your business successful in the face of intense

competition is identifying and fixing your deficiencies. The right market
research tools will aid you in doing just that! The time to begin expanding
your company is now.  

With a presence in New York, San Francisco, Austin, Seattle, Toronto,

London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer
in Research and Analytics, offers tailor-made services to enterprises
worldwide.    

A leader in Market research services, SG Analytics enables organizations

to achieve actionable insights into products, technology, customers,
competition, and the marketplace to make insight-driven
decisions. Contact us today if you are an enterprise looking to make
critical data-driven decisions to prompt accelerated growth and
breakthrough performance.

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