What Is Market Research?

By Author: John James
Total Articles: 102
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In a nutshell, it is the study of how consumer behaviour affects a business. A market research company collects information like, the needs of the targeted market, changing trends in consumer behaviour, what the competition is doing, causes for customer dissatisfaction etc. This information is utilized to
• Monitor the performance of a business in the market
• Evaluate the existing system and refine it if necessary
• Identify problems and/or new opportunities
• Help understand market trends
The results are analyzed and the implications are communicated to the concerned business.
The business can utilize the information to improve the quality of the product or the change marketing strategy for better reach. Market research Companies are therefore, the link between the consumer and a business.
How Does the Market Research Help?
• Estimating market size - this is done by observing a targeted group. The kind of shopping experience they prefer. What they look for in a product? Why they prefer a particular product. Members of the targeted group are sometimes interviewed to obtain a better perspective.
• Scrutinize the competition – online market research helps investigate the competition. You can go to their website, look at the services they provide, see what advertising strategies they use.
• Conclude if the product is successful or can be refined. Market research companies can get people to answer questionnaires and observe customer trends.
• Analyze if your advertising strategy is working – the methods are observation, interviews and questionnaires.
Market research will help you stay in touch with what the customers want. Decisions based on intelligent online market research can help you improve your return on investment. It helps you understand preconceived notions of the customer. Your risk on introducing a new service or product is greatly reduced.
Getting Customer Feedback
Don’t dismiss the opinions of your employees out of hand. They interact with customers on a day to day basis. Some consumers seek them out to offer suggestions or ask questions about a particular product. They are the ones the take the brunt of an unhappy customers’ frustrations. You can encourage employees to speak to customers while waiting for checkout. Telephone and mail surveys are other options. Telephone surveys have their downside. Most customers are irritated when they are in the middle of something important and they get a survey call Consumers respond better to questionnaires sent by market research companies