Why Market Research is a Crucial Component for a Business?

Posted by Rahul Bhaduri

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Market research delivers appropriate information and helps in solving the market challenges that a business is likely to face. Exact and detailed information is the base of all popular business ventures as it delivers a bulk of information about potential and prevailing customers, and the industry in common. It lets the business owners to control the feasibility of a business, before promising considerable resources to the venture.

Market Research is very important for the development of few strategies:

Market Segmentation: Recognize the specific group of people within the market.

Product Differentiation: Build an identity of a product or service which separates them from their competitors in the market.

Market Research mainly involves two kinds of researches:

Primary or Fresh Research: When you hire someone to collect information for you or you do it yourself then the information you acquire is Primary Information. If the information is completely new and is not present on the web or in books or anywhere then it is a Primary Information. Primary information can be acquired through questionnaires, telephonic interviews and many more ways.

Secondary or Desk Research: When you have the information, which is already present somewhere like the web, in your hand in a well-organized way then it is known as the secondary information. Some of the examples of secondary information are the reports by government agencies, case studies performed by some other people and so on. These researches are most of the times second hand research.

Market survey is a very crucial component of a Market Research Process. Survey is one of the most prominent methods to conduct a primary market research. These surveys can be of following types:

In-depth Interview: The in-depth interviews are, most of the times, very focused. The questions are selected in ahead of the time in these focused interviews. The in-depth interview can also be non-directive. In this interviewee has to talk about few topics with very less questions.

Group Survey: This type of interview is mostly conducted by large scale business houses. This helps in coming up with good product ideas and buying decisions amongst the population.

To keep their position in the market, every business needs a unique method as the competition is really getting tough and the needs of the consumer are changing, even while we are talking.

To conclude, Market Research holds a pertinent position in the business strategy decisions of an organization.

Tags: Market Research Survey