A marketing research study is a process of conducting direct contact with potential customers in order to determine whether a new service or product is viable. In market research, companies discover their target markets and gain consumer feedback about their interest in their products. A company can conduct this type of research in-house, by itself, or through a third-party market research firm. A survey, a product test, or a focus group can be used to gather this information. Most test subjects are compensated either with product samples or with a small stipend. A new product or service’s research and development (R&D) would not be complete without market research.
Understanding market research
A market research study examines how a certain good or service will be received by the target audience by looking at the market associated with it. This can include information gathering for market segmentation and product differentiation. This can be used to tailor advertising efforts or determine which features are seen as priorities by consumers. Businesses must engage in a variety of tasks to complete market research.
Types of market research
Face-to-Face Interviews
From there, companies were developed that interviewed people on the streets about publications they read. They also interviewed about whether they recognized any of the ads or brands in the ads published in the magazines or newspapers the interviewer showed them. Data collected from these interviews were compared to the publication circulation to see how effective the ads were. Market research and surveys were adapted from these early techniques.
Focus Groups
Focus groups are small groups of representative consumers who try a product or watch an advertisement. Afterwards, the group is asked for feedback regarding their perceptions of the product, the company’s brand, or competing products.
Survey research
As an alternative to focus groups, surveys represent a cost-effective way to determine consumer attitudes without interviewing them in person. Consumers are sent surveys in the mail, usually with a coupon or voucher to incentivize participation. These surveys help determine how consumers feel about the product, brand, and price point.
Benefits of Market Research
Market research is essential for brand loyalty and customer satisfaction. Market research is also critical to company advertising efforts. If the company’s market research determines that consumers are more likely to use Facebook than Twitter, they can target their advertisements to one platform instead of another. Or, if they determine that their target market is value-sensitive rather than price-sensitive, they can improve the product rather than reduce prices. and we are also one of the best digital marketing company in Nashik we provide all types of marketing solutions to our clients worldwide.