Market research is a systematic process of collecting, analyzing and interpreting information. The information could be about a target market, consumers, competitors and the industry as a whole. This is the foundation of any successful company. The research has a number of different purposes – from identifying a new market to launching a new business.
Objectives of Market Research:
1.To know the needs of customers
2.To know behavior of market
3.To discover new market for your product
4.To increase market share for existing product
5.To know future demand of product
6.To reduce cost of marketing activities
Types of Market Research:
1. Primary research
Primary research is research that you collect yourself but going directly to the target market through a range of methods. Because it is data you create, you own the data set.
2. Secondary research
Secondary research is the use of data that has previously been collected, analyzed and published (and therefore you do not own this data).
3. Qualitative research
Qualitative market research is the collection of primary or secondary data that is non-numerical in nature, and therefore hard to measure.
4. Quantitative research
Quantitative research is the collection of primary or secondary data that is numerical in nature, and so can be collected more easily.
5. Branding research
Branding market research assists a company to create, manage and maintain the company brand. This can relate to the tone, branding, images, values or identity of the company.
6. Customer research
Customer market research looks at the key influences on your target customers and how your company can make changes to encourage sales.
7. Competitor research
Competitor market research is about knowing who your competition is and understanding their strengths and weaknesses, in comparison to your organization.
8. Product research
Product market research is a key way to make sure your products and services are fit for launching in the market, and are performing as well as they can.
Importance of Market Research:
1.To win you need to know your customer closely
2.Research makes you understand the ‘why’
3.Resarch helps to focus on facts and not opinions
4.Research helps you to properly plan in advance
Case Study: Starbucks Coffee Company
Starbucks is one of the status symbol in today’s youth, but the success of starbucks depends on it’s fantastic market research over the last few years. Starbucks market research involves Tracking cultural trends, Monitoring social media ,Gathering customer feedback ,In-store product testing. Over the past 14 years, Starbucks has used market research by obtaining consumer feedback through its My Starbucks Idea platform. Starbucks takes all feedbacks in developing it’s marketing & business strategy.
