Market research is an essential part to launching and running a successful business. The official definition of market research can be described as the systematic collection and analysis of data regarding the prominent attributes of the market you are targeting. This information often includes data relating to consumer behavior, and competition.
Market research enables you to offer your products or services that are focused and targeted to the right consumers. When time is spent doing market research you will often avoid costly mistakes and minimize your financial risks when it comes to your marketing. When we take the time to understand the consumers we are marketing to we are enabled to communicate better and identify opportunities.
Market research can be categorized into two difference categories. They include:
- Primary Research - Primary research is the collection of data that pertains to the monitoring of sales and marketing strategies through direct communication with consumers. Primary research is often used to gauge a company's progress after a product launch.
- Secondary Research - Secondary research often includes data collection through the use of statistics that are already published. These statistics are collected and then analyzed. Secondary research is often less expensive and is ideal when it comes to targeting a particular segment before a product launch.
Market research offers the following important benefits to companies:
- Gauges customer satisfaction
- Devise more effective marketing strategies
- Identify opportunities
- Identify market potential
- Minimizes the chances of loss or potential problems
- Serve as an evaluation tool
- Analyze competitors and create strategic plans to beat rivals