What is Market Research?
Market Research is the process of collecting, analyzing, and interpreting information about a market, including information about the target audience, potential customers, and the competitive landscape. It is an essential tool for businesses to understand market trends, consumer preferences, and other factors that can influence the success of a product or service.
- Market analysis
- Market study
- Market investigation
- Market intelligence
- Consumer research
- Intuition-based decision-making
- Consumer Surveys: Businesses conduct surveys to gather data on consumer preferences and buying behavior.
- Focus Groups: A small group of people is brought together to discuss their perceptions, opinions, and attitudes towards a product or service.
- Competitor Analysis: Researching the strategies and products of competitors to identify strengths and weaknesses.
- Benchmark Study: Benchmark studies involve comparing key performance indicators (KPIs) and other metrics of a company against industry averages or similar businesses.
- 1920s: Market research started to gain prominence with the boom of advertising and radio.
- 1950s: The emergence of statistical methods made data analysis more accurate and reliable.
- 1980s to 1990s: The rise of the internet gave birth to online surveys, offering a faster and broader reach.
- 2000s onwards: Big data and analytics revolutionized market research, providing insights with unprecedented depth and detail.
- SWOT Analysis: An analytical framework used to evaluate a company's strengths, weaknesses, opportunities, and threats.
- Demographic Segmentation: Segmenting the market based on demographic factors like age, gender, income, etc.
- Psychographic Segmentation: Segmenting the market based on lifestyle, behavior, and personality traits.
Notable Figures in Market Research
- Daniel Starch: Noted for his theories on advertising effectiveness.
- Arthur Nielsen: Founder of the ACNielsen Company, which introduced retail measurement and television rating.
- Robert Wood Johnson: Instrumental in using market research to guide product development and marketing at Johnson & Johnson.
"Understanding your market isn't just beneficial, it's essential. At Schaefer, we firmly believe that market research is the cornerstone of any successful business strategy. It’s not merely about gathering data; it's about gaining profound insights into the needs and preferences of your customer base, and adapting your approach accordingly. This isn't a static process but a continuous journey, adapting to the ever-evolving marketplace. As someone at the helm of a revenue generation company, I cannot stress enough the vital role market research plays in fostering sustainable growth and innovation."
— Sidnee Schaefer, CEO of Schaefer
- Artificial Intelligence (AI): Leveraging AI to analyze data more efficiently and predict market trends.
- Social Media Analytics: Using social media platforms as a source of valuable market data.
- Behavioral Economics: Incorporating psychological insights into market research to understand consumer behavior more comprehensively.
- "Market Research: The Process, Data, and Methods Using Stata" by Erik Mooi and Marko Sarstedt.
- "Qualitative Consumer and Marketing Research" by Russell W. Belk, Eileen Fischer, and Robert V. Kozinets.