What is Market Research? ➥
Market Research is a scientific method to validate new ideas, products, or businesses before their development. This helps you to get quick feedback and insights even before working on the development process itself.
What does market research reveal? ➥
- Audience
- Key demographics
- Market size
- Market trends
- Competitors, and their strengths and weaknesses
- Pricing strategy
- Barriers to entry
- Business strategy
- Distribution channels
- Government regulations
- Problems or needs
- Product development
- Psychographics
- Overall demand for your product or service
- Economic strength of your target audiences
- Availability and prices of similar solutions
When to do Market Research? ➥
Market research can be done at any stage, but it’s commonly performed before developing a new product or business. Keep in mind that market research can also be conducted for existing products and businesses.
Here are the most common scenarios:
- Validating a new idea (a new product, service, or business idea)
- Improving an existing product or solution through continuous feedback from target customers
- Understanding evolving customer needs and latest industry trends
Data Collection Methods ➥
There are several methods to collect data for market research:
- Surveys: Questionnaires distributed to a sample of your target audience to gather quantitative data.
- Interviews: One-on-one conversations with potential customers to gain in-depth qualitative insights.
- Focus Groups: Group discussions with selected participants to explore their perceptions and opinions.
- Observation: Watching how consumers interact with products or services in a natural setting.
- Secondary Research: Analyzing existing data from reports, studies, and other sources.
- Online Analytics: Using tools to track and analyze online behavior and trends.
- Social Media Monitoring: Observing and analyzing conversations and trends on social media platforms.
- Experiments and Field Trials: Testing products or services in real-world scenarios to gather performance data.
How to do Market Research ? ➥
A company should avoid wasting resources on collecting unnecessary data. It is important to decide in advance which types of consumers will be included in the research and how the data will be collected.
Market research consists of two main components:
- Question Preparation: These questions should be designed to gather specific information about the target market, customer preferences, and other key insights.
- Data Collection: Data is collected about a target market, relevant audiences, and the associated demand for a product or service.
- Analysis: By analyzing this data, businesses can get quick feedback to modify the new offering and tailor their solutions to meet market needs.
Market research uses data insights to determine the viability of a new product or business. The results will be used to revise the product design and fine-tune it to make it suitable for the target markets (economy, audience, demand, and needs).
The Questions ➥
- Demographic: Covers aspects such as age, gender, and location.
- Industry: Relates to the recipient’s familiarity and involvement in your sector.
- Business: Refers to the participant’s professional life and routine.
- Brand: Asks for their knowledge about your brand.
- Competition: Involves questions related to similar solutions.
- Product or Service: Inquires about the recipient’s perception towards your offering.