Market research refers to the process of obtaining data regarding the targeted audience, and lies at the heart of a commercial enterprise’s strategy.
Taking a good look at the market and obtaining information about consumer behavior means a business has the required tools to identify its competitors’ strengths, and perhaps gain an awareness of its weaknesses in relation to those.
The three most important elements the research will help to gather information about and analyze are the size of the consumer pool, market need, and main competitors.
The techniques used include empirical and qualitative methods, examples of which include opinion polls and interviews respectively.
The research phase can also make use of the in-depth study and observation of small numbers of people, usually called focus groups, members of which are chosen based on them being part of a desired demographic(s).
The members can then be asked direct questions, prompted for opinions on certain scenarios, or asked to rate elements based on desirability.
Market Research For Products And Services
In the realm of commercial activity, market research will be used to get information about a desired social group, and background regarding their beliefs, opinions, needs and wants, and social habits.
In this process pertaining to an energy drink, for example, the necessary social group is virtually self-explanatory: teenagers and young adults who study or have recently entered the employed phase.
Market trends refer to certain general and observable patterns regarding a particular activity.
For example, for a company that is looking to set up shop in the tourism segment, it would benefit for example from widening its services in the low snowfall seasons and reducing them in bad weather.
Although this example is fairly well established, in the case of a product that currently has no competition or similar offerings in the market, it would be more difficult to gather the required data.
The process of identifying several groups within the required target market is called segmentation.
This may be required where the audience is united by the fact that they all buy the concerned product (and therefore exhibit a few key social habits), but are divided across other choice lines.
For example, women living in hot and humid cities may choose to buy thicker sanitary pads, while those living in cold climates will subscribe to purchasing thinner lighter ones.
A renowned market research company in Dubai will, therefore, be able to identify the need for introducing branding perspectives for similar products.
The acronym stands for strengths, weaknesses, opportunities, and threats for a commercial organization.
Often used throughout the duration a company is active, the formula of sorts will help develop a detailed understanding of potential competitor actions, and perhaps preemptive market-related action.