Market research is a technique use both by prospective entrepreneurs in order to gather analyse useful and dynamic information about the market in which the business will operate in. Market research can also be seen as the bedrock of any venture which is use by establish business people. Market research is use for developing effective strategies; weighing the pros and cons (two sides) of a propose decisions, determining the future of the business and much more. The way to keep your business more competitive edge sharp is with effective market research skills.
Market research was first put into place in the United States in the 1920s and originated during the advertising boom during the Golden Age of Radio. Companies that advertised on the radio began to understand the demographics that were revealed by how different radio shows were sponsored. From there, companies were developed that would interview people on the street about publications that they read and whether they recognized any ads that were published in the magazines or newspapers the interviewer showed them. Data collected from these interviews were compared to the circulation of the publication in order to see how effective those ads were. Market research and surveys were adapted from these early techniques.
Data collection then shifted to the telephone, making face-to-face contact unnecessary. A telephone operator could collect information or organize focus groups — and do so quickly and in a more organized and orderly fashion. This method improved the market research model greatly.
Within the last 10 to 15 years, market research started to make a shift online.
While the platform may have changed, data collection is still mainly done in a survey-style form. But instead of companies actively seeking participants by finding them on the street or by cold calling them on the phone, people can choose to sign up and take surveys and offer opinions when they have time. This makes the process far less intrusive and less rushed since people can do so on their own time and by their own volition.
Many companies use market research to test out new products or to get information from consumers about what kinds of products or services they need and don’t currently have.
For example, a company that was considering going into business might conduct market research to test the viability of its product or service. If the market research confirms consumer interest, the business can proceed confidently with the business plan. If not, the company should use the results of the market research to make adjustments to the product to bring it in line with customer desires.
Also, market research is a critical tool in helping companies understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.
It should be noted that, any form of marketing research tool does not guarantee success. MR provides information to public and private sector about the market in order to know what are the friction to fix (needs), size, customers of the market. It helps the manager to be well inform about the market.
Let’s round this up by stating that, market Research can never be perfect, it is base on futuristic forecasting of the business outcome which is base on observation and written records. Also, market research is a path or direction in your propose business plan or blue print which is put into use in order to target customers in a particular niche. This type of research can be conducted in house, by the company itself, or by a third-party company that specializes in market research. It can be done through surveys, product testing, and focus groups. Test subjects are usually compensated with product samples and/or paid a small stipend for their time.