Market research plays a very important role in the business world, as it fulfills a goal and purpose in business. If you want to know more about market research, stay with us and read What is and what are the processes, objectives and types of market research?
What is it and what are the processes and objectives of market research?
What is market research?
By market research we understand that it is that much needed tool in the identification, systematic use, analysis, dissemination and mainly for data collection in order to make better decisions. But, mainly, market research is widely used to collect data essential customers and thus achieve better knowledge of consumers.
Market research process
Market research follows a fairly long and defined process, having several fundamental stages for it to work properly, so let’s see what this process is:
- Definition of the problem: before following any other step in the process, it is important to define what the problem is, that is, identify the purpose of the investigation, the necessary information and information used in decision-making. This is a one-off step, since once the problem has been concisely defined, the market research can be formally carried out.
- Developing an approach to the problem: this includes formulating a theoretical framework, where there are research questions, hypotheses, creating a find, and identifying what information will be needed, which may require expert guidance and qualitative research.
- Research design formulation: This process includes the create an outline or guide where the steps to collect the necessary information are exposed, where a study is designed where the hypotheses of interest are verified, provide information for decision-making, and possible answers to the research questions.
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- Data collection: This is the process in which a staff in charge of conducting personal surveys operates, from an office over the phone, by e-mail, or by postal mail in order to collect the data
- Data preparation and analysis: This part of the process, a review, coding, transcription and verification of all the data is made, where errors are corrected if there are any, and finally decisions related to the marketing problem are made
- Preparation and presentation of the report: when everything is done, you must document everything in a written report where the research, research design, methods for data collection are formulated and includes the findings and results.
Objectives of market research
- Economic objective: applied to this field, market research focuses on analyzing and studying the probabilities, the possible success or failure in terms of money and the economic field within a company, emphasizing the importance of research of markets in the marketing strategy or to assess the viability of a business in an unexplored market
- Social objective: this objective expresses strictly satisfying the needs of customers, through producing a good or service that meets customer expectations
- Administrative objective: market research serves for the development of the business, through an adequate organization, planning and control of all resources and areas, this allows, then, to be able to cover all the market needs on time, which avoids many problems
Types of market research
It is also known as exploratory research, and it is one of the most common, as it is done to find out and get information on consumers, so it does not require a large budget because it is done through tests, interviews, surveys, among others.
This type of research is considerably more exact than quantitative and it is carried out through large surveys of many people, in order to obtain a greater amount of information, more concrete and precise.
This field research is more expensive but very effective, since it is done by companies that they have a lot of information about the competition, such as production, prices, quantity of products they sell, etc.
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