What is the importance of market research

Market research

Market Research. 1. Term: Market research is a branch of marketing research. Market research and marketing research have the same object of investigation, provided they relate to sales markets. While marketing research also collects and processes internal marketing-relevant information, market research can also relate to other markets, e.g. procurement markets. Market research is the systematic research of a specific sub-market (meeting of supply and demand) including the recording of the needs of all those involved, using above all external sources of information. In contrast, market research is only an occasional and unsystematic study of the market.

2. To shape: One can differentiate between numerous forms of market research according to different criteria:
(1) After Object of investigation (ecoscopic market research, demoscopic market research);
(2) after Collection or reference period (ongoing, case-by-case, prospective, retrospective);
(3) after the Examination room (local, regional or international market research);
(4) after Market areas or industries (Capital goods, consumer goods, services, trade, non-commercial market research; competitor analysis);
(5) after Divisions (Procurement market research, sales market research, personnel research).

3. Procedure:
(1) Determination and delimitation of information needs;
(2) Determination of the examination method;
(3) Preparation of the survey documents;
(4) Collection of the data sought;
(5) Processing of the data obtained so that they clarify the need for information;
(6) Present the results and make a decision based on the knowledge gained.

4. Procedure: a) Information acquisition: A distinction must be made between primary research and secondary research. The latter uses existing, previously collected data, while the former only collects new information.

b) Selection of the objects to be examined (e.g. people, companies): In the case of partial surveys, the selection is usually made using various statistical processes (selection process, random sampling process).

c) Data collection (Survey): As part of primary research, data is collected through observation and / or questioning (interview, expert questioning), which can take the form of an experiment. The methods of data collection can be used in the context of field research (e.g. test market) or laboratory research (e.g. test market simulation). In some cases, apparatus-based processes are used in the context of market research. Computer-aided data collection is often used. In addition, a large number of research methods and test procedures for special marketing issues have been developed in science and practice (e.g. acceptance test, advertisement test, eye registration).

d) Information processing: Information processing is based on the objectives of the investigation, the number of variables to be processed and the quality of the data (scale level). The following are possible:
(1) Univariate analysis methods (e.g. frequency counting, frequency distribution);
(2) bivariate analysis methods (e.g. cross tabulation, correlation, simple regression analysis);
(3) multivariate analysis methods (e.g. conjoint measurement, multiple regression analysis, analysis of variance, discriminant analysis, cluster analysis, factor analysis, multidimensional scaling (MDS), path analysis, causal analysis);
(4) the use of complex marketing models.

5. Applications: The results of market research form the basis for diagnosing and forecasting future market and product developments and thus for planning strategic and operational marketing measures (marketing). Especially the planning of new products and the development of individual communication policy measures are dependent on the use of comprehensive market research data. The needs of customers can only be precisely determined through systematic market research. Price tests underpin, for example, the determination of specific prices for the individual parts of the range. With the help of market segmentation, new customer segments can be identified. In the context of capital goods market research, the bearers of important decisions are identified depending on the phase of an individual project section. All data obtained in the course of market research can be saved with the help of a marketing information system (MAIS) and processed in a decision-oriented manner and, in marketing expert systems, serve as a basis for problem solving even poorly structured, marketing-specific questions.