What is marketing research?
Market (or marketing) research is all about obtaining the objective information that is needed to help business decision-makers make informed choices.
In the highly complex modern business environment it is practically impossible to rely on personal experience and intuition alone in making business decisions, and when facing important choices which may be decisive in terms of market share (and even in terms of company survival) it is very often worth investing in market research. Even intelligent decisions that are informed by inaccurate or outdated information can turn out to have very serious negative effects, so the money spent on good research can make the difference between a successful business choice and major economic losses.
Marketing research can be used to examine the market as a whole or to identify answers to focused questions. It can give businesses feedback on products, services, and prices, for example, or explore and provide insights into customers' behaviours, attitudes, and motivations.
In a market environment in which supply outweighs demand, it is necessary to find out what consumers really want, what they are willing to pay, what factors drive their choices, and so on. When businesses are unable to answer these questions themselves, they can turn to a research agency for help.
At the beginning of any marketing research, the client will usually have many questions which need concrete answers. Such questions can, for example, include the following:
- What is the real market potential of the service we are planning to launch?
- Does our service meet the needs of our customers?
- Why are our sales falling?
- How do consumers see us relative to our competitors?
- Who are our customers, and what is important to them?
- What is the image of our brand?
- What impression will consumers get from our new advertising campaign?
- What is the level of consumer awareness of our brand?
- What is the market that we are planning to enter like?
A range of qualitative and quantitative research methods can be used to gain answers to these and many other questions.
After conducting the research and analyzing the data obtained, the research agency provides its clients with answers to their questions and (usually) with recommendations; this helps clients to create plans or strategies for the upcoming period.