It is a process of logical collection of data pertaining to the customers, competitors and the market and analyzing it for the advancement of the product range or services in the existing market condition.
With the help of market research, it is easier to predict the future trends in the demand of the product or service. The market characteristics can be found out by comparing the target of a company. It is a tool which aids the decision makers to understand about the market scenario and helps to take the right decision accordingly.
As the markets are customer driven, to sustain its stand in the market, it is inevitable for a company to undergo such process. On the basis of general views or behavior of a customer, the needs of the market can be judged and thus if the product is developed by keeping in mind these requirements, making a good business is a sure shot.
Market research can be carried out at two phases in a business life cycle-
- At the pre-implementation phase of any business to understand the need of setting up a business and to justify that the product is based on the market potential
- During the implementation phase of any business in order to enhance and expand it on the basis of projected demands and future trends.
Market research can be further sub branched into various types of research like: customer satisfaction with the product, analysis of competitors in the market, further requirements of the customers and their expectations, risk analysis, marketing analysis, etc.
Market research is a part of a scientific process which is based on technical, logical and statistical steps, and relevant calculations to arrive at or to help in judgments and decisions.
Research process can be divided into various logical steps like:
- Defining the need for research
- Framing a research question and objective of the study
- Developing a research plan to give an estimate on the time, cost and other resources required for the study
- Collection of data through primary and secondary sources
- Analysis of the data collected
- Inferences from the analyzed data
- Conclusions, suggestions or recommendations
And thus from recommendations, derived from the research carried out, the actual implementation of these research starts which helps the company to achieve its projected and envisaged level.
Thus market research can prove to be an ideal aid to help your company start up or grow as per your vision and up to the satisfaction the customers or users.