Starting a new business requires smart market research. First find out your target population and potential customers and their demands and plan your product or services before you take the plunge. Business research reports help you do a precise competitive analysis to differentiate the conditions and your offerings. Marketing research is a crucial procedure of systematic analysis and collection of all the market data of various products and services. It helps the businesses to stay abreast of market trends, segments, competition and their own condition. Industry research benefits large and small businesses alike.
Best Methods of Market Research
Market research is much more than online surveys as it deals with a lot of in depth research methodologies and techniques. All these methods have their own significance on the drawings of the research findings. Precisely, there are five important methods of business research, they include:
In-person, post office, telephonic and online surveys are the four established types of market research surveys. Amongst these four types, in-person surveys are the most effective and expensive. They yield more than 90% of customer response. Telephonic surveys yield about 60% response while post office surveys have the response rate of 3% to 15%. Online surveys on the other hand are the most inexpensive but they sometimes yield unreliable and unpredictable response.
During market research personal interviews, the nature of questions is really unstructured and open-ended. The question-answer session during personal interviews lasts for a few hours and it is typically recorded.
3. Focus Groups
Focus groups involve a series of scripted questions that generally help initiate discussion and debate amongst that particular group of customers. Focus group needs at least three customers to bring about balanced results.
Observation is a crucial step of business research process. Sometimes, actual behavior of your customers differs from their response. Professionals from market research firm observe these minute changes and differences and use them to get a clear idea about their actual behavior.
5. Field Trials
Field trial is an ideal way of marketing research for businesses, especially small businesses. Field trial is a process of selling newly launched products at select stores. Such sell helps identifying the response of customers, product modification for price and packaging.
These methods of industry research provide detailed information about market trends, customer satisfaction levels and competitor analysis. The aforementioned methods come into use as per the requirement, nature and size of the research.
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world.
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