What is Market Research?

Whether it’s a customer seeking discounts or a fan searching for their favorite band, the Internet makes analyzing information easier. It is because everything users do online creates a digital footprint. This is where market research comes in.

Consumers may simply investigate firms and goods, obtaining information to compare pricing and services with a few mouse clicks. Consumers may also readily discuss their preferences and dislikes, whether with businesses or friends. 

This process may also be reversed. Companies can research their consumers, their interests, their perspective about the brand, and the ideal moment to interact with them.

Importance of Market Research

Things rapidly change in the digital era, and staying ahead of the competition is critical to success. So how do you do that?

Keep your brand relevant and updated, and ensure that the needs of the consumers are met. It is accomplishable by doing market research. Market research assists you in making sound business decisions. It entails acquiring, documenting, and analyzing data on customers, competitors, and the industry in a systematic manner. Afterward, translating this data into insight can drive marketing plans and campaigns.

Online market research is the process of gathering important information about a target audience via the use of digital tools. In other words, it is the process of learning about your audience through online interactions and observations. Technology makes the whole process of market research easier to conduct and manage.

These are the reasons why conducting constant market research is essential:

• Gain insights from customers including needs and wants, likes and dislikes, reasons, potential customers, etc.
• Understand industry and business changes.
• Discover capitalizable market trends.
• Find new sales avenues and customers.

Market Research Key Concepts

Methodology

In terms of market research, these are the processes that need to be followed to properly conduct essential research. The steps as to how to conduct research are as follows:

• Set up goals 
• Find sample
• Determine how to collect data
• Gather information
• Analyze
• Establish conclusions

Market research is focused frequently on specific concerns that are unique to a company or brand. As a result, it is not always possible to obtain similar information to help in decision-making. This is why it is critical to start with a specific research issue or hypothesis.

Primary and Secondary Market Research

Primary research is undertaken when new data for a specific product or concept is acquired. This is where information does not already exist or is not readily available, necessitating the collection of information from customers or enterprises.

Secondary research makes use of existing data as a source of knowledge. It may be less expensive than undertaking primary research. For performing this study, the Internet provides a variety of information. However, the data would’ve been obtained to find solutions to issues different from your current problem. For that reason, it’s possible that they are not particular for your study. Secondary research can help highlight problems that should be addressed further through primary research.

Types of Data in Market Research

Data in market research is differentiated as qualitative or quantitative. Qualitative research is exploratory in nature, aiming to discover what potential customers think and feel about a certain topic. Qualitative research assists in the identification of new ideas, whereas quantitative research provides statistics to support these theories. A quantitative study uses numerical data to illustrate statistical results.

You can use the internet to acquire both primary and secondary data. Online communities may be considered big focus groups, with members constantly offering their thoughts on goods, markets, and companies.

Once you’ve done both types of research, move on to qualitative research first to gain an understanding of the concerns. Then, you conduct quantitative research to test the ideas put out.

Sampling

The sample size is a crucial consideration while doing research, and it should be representative of the entire population. If conducting business both online and offline, be mindful that employing online channels may not accurately represent your target market. However, if your company primarily does business online, offline avenues for market research are less required.

In addition, the sample size in quantitative studies necessitates accuracy. This is because it aims to produce predictors and accurate observations.

How to Conduct Online Market Research?

There are different procedures how to do market research online. Choosing the correct way relies on different factors including research question, time, purpose, and budget. 

Surveys

This is best for gathering large amounts of numerical data, and some qualitative data too. Also, this is easy and fast to set up and can automatically run. The following are examples 

• Open-ended – allows people to respond in their own words
• Closed – users are to respond with specific answers curated for them
• Ranked – lets users rank items according to their preference
• Matrix – used to quantify qualitative data

Focus Groups

This is best for interacting with customers and gathering opinions, ideas, and impressions about the brand. This necessitates a longer time and a willing group.

Online Monitoring

This is best for gathering qualitative data regarding the brand view of consumers. You can passively collect this and have several automation tools.

Advantages and Disadvantages in Market Research

Market researchers are increasingly relying on internet technologies to do their studies. The Internet provides for much lower-cost research; it also allows crossing boundaries, speeding up the process.

Online market research does not signify that there are no disadvantages. While the Internet allows you to reach a bigger group without the cost of facilitators, it comes with certain drawbacks. You cannot, for example, manage the surroundings where you obtain information. It’s critical to focus on gathering the right number of participants in online sampling for your study to be valid. Confusion might lead to replies that are erroneous or irrelevant if you do not carefully craft your queries. Furthermore, online incentives may lead to untruthful responses, implying that the data’s worth is doubtful.

Do not misread the significance of online research. It’s critical to evaluate the nature of the study and question the authenticity of the data as a genuine depiction. Data is only valuable if it is representative, therefore set goals and realistic expectations for your study.

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