Before launching a product, companies need to conduct market research. This helps them understand the current trends and consumer needs so that they can launch their products at a time when demand for that product is high.
Introducing a new product without conducting market research can be futile for businesses. They might launch such a product for which there is no demand. This may lead to huge losses. Therefore, companies need to incorporate market research in their marketing plans.
However, market research is not simply about collecting information about trends, consumer behavior, market demand, etc. There are various phases of market research that are conducted to gather complete data about the market situation.
This data is very useful for businesses planning to launch new products, maintain their position in the market, compete with rival brands, and improve customer experience. In short, market research is what helps brands stay in business.
Work made easier: - Market Research Made Simple: Tips and Tricks. PHASES OF MARKET RESEARCH
As mentioned above, market research provides comprehensive information about the market, including the latest trends, pricing patterns, demand, production, etc. It gives businesses a clear picture of the market scenario that helps them make long-term plans and marketing strategies.
Market research involves a series of processes that are carried out to collect accurate data about the overall market.
Here are the key phases that are important in market research: –
- IDENTIFICATION OF PROBLEMS
This is the first step of conducting market research. Market research is used by businesses to help them plan out their marketing strategy. For this, companies must first identify their current plans’ shortcomings. Therefore, the first step includes the identification of the problem.
After the problem has been solved, market researchers clearly understand the area where the research will be conducted.
The important area is thus highlighted, and studies are conducted to collect data regarding that particular problem. The data thus collected provides the solution and steps to rectify the situation.
- THE BEST RESEARCH STRATEGY
After the problem has been identified, market researchers need to plan a strategy to help them gather accurate data about that specific problem. This also includes selecting the type, sources, and techniques the researcher shall use to collect and analyze data.
The strategy may involve conducting surveys or collecting data through reports, publications, etc.
Two types of data are used to conduct market research. These are Primary data and Secondary Data.
Primary Data is the information collected via surveys, interviews, social experiments, etc., that the researchers conduct. This method is time-consuming and expensive but can collect accurate data.
Secondary data is the data that is collected through sources that already exist. This includes reports, publications, or websites. This data is readily available and an affordable solution to gather information.
- COLLECTING DATA
This step is all about the execution of the techniques of data collection, as discussed above. Once the objective and method of collecting data have been decided, it is time to conduct the research. Various ways can be used to collect data.
- SURVEYS: –
Surveys can be an effective way to collect data about consumer likes and dislike, market trends, demand for products, etc. Surveys provide you with unbiased feedback from people. Analyzing the feedback collected through these surveys can help businesses understand people better.
- INTERVIEWS: –
The best way to know your customers better is through conducting interviews. It helps you gain access to the honest opinions of the people regarding your products, their likes, the demand for the products, and much more.
Interacting with people is the best way to understand them. This helps you improve your customer experience and maintain customer retention.
- SOCIAL MEDIA: –
Social media is the most effective tool that helps businesses track trends and consumer preferences. Through social media, businesses can get feedback from people through reviews posted by them regarding certain products and services.
Social media platform offers inexpensive services to businesses to collect data about the latest trends, customer demands, and much more.
Conducting social media polls is a great option that can connect you with your target audience. This can help various brands and companies design their products and make the necessary changes.
- ANALYSING DATA
After conducting surveys and collecting feedback, the next step is to analyze it. This helps you understand the various trends and patterns within a market that can impact a business’s overall performance. This allows you to make reports based on the data collected.
This data is used to review the results and take the necessary course of action. It would be useless to only collect information and not act on it.
Many online tools come with the facility to form reports from the feedback received.
- REPORT AND TAKE ACTION
Once the data is collected, it is used to make a report. This task is done by a market researcher whose job is to collect and analyze data about the market. The reports are prepared based on the information gathered.
This is the final step of market research. The data presented should be used to make conclusions. The reports should include the solutions and methods to overcome the shortcomings and strategies that the company should incorporate to expand its marketing and increase customer count.
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Market research is an indispensable tool that helps businesses understand the market, make decisions, reduce risks and improve customer satisfaction. Through market research, companies can understand the market situation and form their marketing and promotion strategies.
Companies need to be aware of every minute changes in the competitive market. To establish their position and stand out from their rivals, businesses need to be prepared for every upcoming challenge. Market research helps companies to survive in ever-changing market conditions.
Through the phases of market research mentioned above, it becomes easier to conduct research and gather information about the market. This allows a systematic flow of gathering information.
