Market Research is an exhaustive organized process where informative and relevant data is collected for a market/ product or a service. This data is used to study and analyse current market scenario and build future projections which can be used for business planning and strategic moves.
Market Research: Benefits
– Assists in future planning of the business. E.g.
- Should the company expand its product line
- Will the product be profitable
– Makes Decision Process easier
– Gives factual information (thus breaking business myths/ and individual perceptions)
– Reduces risks
– Assists in identifying competitive edge
Small or big all enterprises can and should take strategic decisions after conducting a market research in the related field.
Market Research: Methods
There are broadly two types of research
1. Quantitative Research
In this process numerical data is generated which measures the market’s phenomena and demands. This is used for statistical analysis using various mathematical and computational techniques. It quantifies attitudes/opinions/behaviour on a sample and is then extrapolated for the full sample. This is usually conducted through surveys and questionnaire.
2. Qualitative Research
In this more insights and understanding is measured for the topic. It explores various options and gathers opinions. This kind of data is collected through interviews, group discussions etc. The insights are then used to explore various business decisions.
Market Research: Analysis
This is the trickiest part as data collected has to be strategically used in gaining intellectual analysis. Business experts and market research analysts are very well acquainted to do this work.
It is very exhaustive work and various techniques & tools are used to get useful conclusions. Interestingly the same data can be used to make different inferences depending on the research needs and goals. Some common data analysis types are briefed –
Data mining – this technique focuses on modeling and discovery of knowledge discovery for predictive purposes. This method is not useful for descriptive purposes.
Business Intelligence – this technique focuses on business related information covering data analysis that relies on data aggregation.
Statistical applications – it can be
- Descriptive statistics
- Exploratory data analysis also called EDA (discover new features)
- Confirmatory data analysis also known as CDA (confirms the existing hypotheses about the data)
- Predictive analytics focuses on application of statistical models for predictive forecasting or classification e.g. market growth in 2022- with data available for 2015
- Text analytics uses statistical, linguistic, & other methods to pull out data and classify the information received from text sources.
This analysis is then constructively used in the business planning bringing a profitable inclination towards the decisions taken. Business planning plays a major role which reflects the survival of the business.