What is Effective Market Research?


1 Answers

Adam Yare Profile
Adam Yare answered
Market research is a tool used in business to gain information and evaluate a new service or product's chance of success.

By speaking to existing customers and clients about their habits and needs, market research is able to determine whether there is enough demand for a product/service or if it will make a profit when put on to the market.

Market research tends to look at five key factors, these are:

  • The customers themselves, who are they?
  • The needs of the customer.
  • Competition
  • Gaps in the market.
  • And most importantly, do people like the product?
Successful market research will also use two types of technique, in order to get the information required to make a clear decision on whether a product/service is likely to be successful.

  • Quantitative Research - Numerical data used to determine the size, cost and growth of a potential market. Such research will also give those conducting it a greater understanding of their customer base, for example age, gender, background and location.
  • Qualitative Research - Provides a better understanding of the attitudes, ideas and thoughts of customers. By utilizing focus groups to generate and develop new ideas, it also allows companies to monitor reactions to new brands and advertising campaigns.
Further information on successful market research can be found in a number of books, theses are available from outlets including Waterstones and online at www.amazon.com

Answer Question