Market research is the evaluation process of testing the feasibility of new products and services. It’s done through research conducted directly to potential customers. This method enables organizations to discover a target market, collect, document, evaluate consumer feedback and make informed decisions. The research can be conducted directly by the organization or outsourced to expert agencies to research on their behalf. This article will discuss different types of research and how businesses can start using market research to promote new products.

Types of Research

The following methods are used by businesses to determine their target consumer’s behavior. It will enable them to know the likelihood of the consumers buying a new product they are launching at a given cost. This way, they can deduce the meaningful conclusion that will help with the development of the product. Below are the two main types.

1. A Primary Market Research

It’s a combination of both quantitative and qualitative research. The organization gets in touch with its end-consumers directly or via an agency such as NetBase Quid to collect the required feedback. NetBase Quid is an accurate and fastest social media analytics platform currently in the market.

2. Secondary Market Research

The secondary research technique uses information collected and compiled by a third-party source like media, chamber of commerce, or government agencies. You can find the information in newspapers, magazines, books, government, and non-government agencies, among others.

How to Get Started

Below are essential steps to take for useful research:

1. Problem Definition

It’s vital to clearly outline the objective of the research you want to undertake. It will help you answer and solve the problem in your organization and gain helpful insights.

2. Define a Sample

During the research, the researcher should select a representative sample of a small number of people representing a larger group of people as accurately as possible.

3. Data Collection

It’s the most crucial aspect. Choose the data collection method you intend to use. Ensure to collect complete data that is free from errors to ensure accuracy of the result.

4. Analyzing Results and Write a Report

Carefully analyses and interprets all the collected data. The data analysis results should get outlined in the report. It’s written to ensure effective decision-making from all the research’s essential findings.

5. Decision Making

After the research is complete and the report is released, the business owners and the management sits down and decide what strategy will push the business forward. For instance, they should determine if the new product they want to launch will do well in the target market or not and what they need to change in terms of pricing, type, or quality of the product.

How Will Market Research Benefit Your Business?

The current economy is extremely competitive today, and every business needs to understand its customer’s preferences. Conducting research is the best way to ensure the fulfillment of your customer’s requirements. It helps to reduce the loss of customers, which in return leads to growth. The following are a few reasons.

• Research helps the business acquire information and opportunities about their new and existing products, which allows them to strategize accordingly.
• When the organization carries out comparative research, it will stay ahead of competitors by using effective strategies to beat them.
• The business owners will know what their consumers’ needs and wants are. It will help in planning and designing their products appropriately to suit their consumer’s needs. 
• The businesses will correctly forecast sales and production rates. It will enable them to avoid overstocking or understocking incidences by determining the market’s optimum inventory stock.