The key to successfully running a business is providing customers with the best quality products or services. Part of ensuring complete customer satisfaction is offering what they require. A product that was suitable for customers a few years ago may be less effective in the present. Therefore, understanding what the customer wants and modifying and developing your product accordingly is essential. This is where market research comes to aid.
Research is the process of gathering information on a respective subject. By that definition, market research is collecting information about the target audience or market. A business, irrespective of its size, type, or speciality, must regularly perform market research to stay updated with its consumer behaviours, preferences and demands. Before conducting thorough market research, you must understand its different types and figure out the most accurate one for your business.
4 Basic Types of Market Research
Below goes a list of the 4 popular and often-used types of market research, their objectives and applicability.
Primary Research
Primary research involves a business or organisation going directly to the target audience or market to collect the information. The type of questions and collected information in this form of research can either be exploratory or conclusive. Exploratory data are collected after asking one or a series of open-ended questions to identify the issue. Conclusive data, on the other hand, is sourced by asking specific questions drafted to solve the issue identified via the exploratory data analysis.
The primary research has various methods.
Focus groups
Surveys
One-on-one interviews
Ethnographic research
Secondary Research
This form of research excludes the need for the business or organisation to contact the target audience by using already existing data. The government, media and various agencies collect data from the audience for a variety of purposes. Newspapers, magazines, and online portals publish this data. An organisation or business can use the available information to complete market research and come to the required conclusions. Secondary research reduces the cost, time consumption and effort and makes research more convenient.
Quantitative Research
Quantitative research is based on quantity or numerical data. This type of research helps set benchmarks, find trends, locate patterns, and determine averages. Polls, desk research, surveys, web statistics, and financial records are common sources of information, while tables, charts and graphics are frequently used for analysis and drawing conclusions. The key features of this research are the ease of data analysis and consistent information.
Quantitative research can be useful when market forecasting, sizing, and validation are in order.
Qualitative Research
Qualitative research can be more complex and time-consuming since it depends on non-numerical or non-statistical data. However, it becomes vital when you need targeted information that can’t be filtered from numerics only. You can gain in-depth data by observing interactions, experiences, opinions, beliefs, and attitudes and asking unstructured questions.
Regardless of the time-consuming and complicated nature, a business must conduct qualitative research to understand its customers and innovate products with the correct insights.
Types of Market Research Based on Specific Data Collection
The following types of market research are done to source and analyse data on a specific topic or aspect of the market.
Branding Research
This form of research is associated with building and maintaining the brand’s image in the market. It can help identify and enhance brand loyalty, brand value and positioning. You can determine your brand’s performance and areas of improvement with properly executed branding research.
Customer Research
Customer research is highly suggested for any business or organisation to maintain customer satisfaction. It is a method of understanding the likes and dislikes of the customer and using the data to provide the most suitable product. Customer research can assist in raising customer loyalty and retention in the long term.
Competitor Research
It involves comparing your competitor’s strengths and weaknesses against yours and determining your competitive edge. Competitive analysis is necessary to ensure the customer selects you among all businesses existing in the market.
Product Research
Product research shows if your product has performed in the expected way, if the product matches the customers’ demand and if your product needs any improvement. Product performance should be done regularly for the best possible outcome; a market research company can help you with that.
Conclusion
Regular market research can provide the information you need to stay relevant. New products with advanced features are constantly entering the market. In such a competitive situation, you should focus on innovation and modification of your offerings. You will need to analyse various types of data gathered from different sources to understand your position in the market, your existing customers’ contentment and the possibility of turning new customers.
A market research agency can perform regular market research, provide well-analysed conclusions, and recommend effective strategies for your steady growth.
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