Market
Research is any activity aimed
at understanding the behavior of consumers (whether they
are industrial (companies) or end users (consumers) in a certain
market.
However, commercial
market research focuses on speed and answering
specific management questions, rather than answering
"interesting" or "theoretical" questions.
A "market"
is influenced by a multitude of economic, social, psychological,
cultural, legal and political factors. Any of these factors can
influence the behavior, (including purchase behavior) of a set of
defined consumers in a defined market. Market research can include
broad analysis of a market as a whole such as feasibility
research and estimation of market growth, or specific analysis products,
product classes or target/sub groups within a market.
Market Research
always involves some form of data collection
- either Secondary Research (sometimes called desk, document or
investigative research) or direct from the consumer - fieldwork.
It almost always
includes the analysis of this raw data
to help management see clearly the main factors and trends in a
specific market, usually with a major focus on the client's own
products, services, brands, or company, and often on their competitive
positioning.
Unlike academic
research, commercial market research attempts less to construct
general theories but is highly focused on providing
reliable and valid data on consumer behavior in a specific product
class or area within a specific target market, to answer
urgent management questions. One key aspect of commercial market
research is speed, while maintaining validity and reliability of
results.
Market research
typically extracts specific data on consumer
preferences, perceptions, decision-making, attitudes, usage, and
any other areas for the purpose of marketing more effectively
products and services.
Process
A typical market
reserch process involves:
-
Client usually
approaches consultant to conduct market research with a set
of Management Questions that
they need answered to make better decisions.
-
Client and
consultant develop these into a set of broad Research
Questions, designed to provide the data required.
These research questions take into consideration target markets
and the type of information required.
-
A Research
Plan is then developed by the consultant including
target markets, methodologies and techniques to be used, timings
and costs.
- After approval
of the research plan, consultant will then divide and translate
the Research Questions into the actual Investigative
Questions that need to be asked in fieldwork via
- intercepts,
- focus groups,
- secondary
or "desk research",
- interviews,
observation, or
- any number
of a multitude of various research techniques.
