The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face .
Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry in general. It allows business owners to determine the feasibility of a business before committing substantial resources to the venture.
Market research provides relevant data to help solve marketing challenges that a business will most likely face--an integral part of the business planning process. In fact, strategies such as market segmentation (identifying specific groups within a market) and product differentiation (creating an identity for a product or service that separates it from those of the competitors) are impossible to develop without market research.
Market research involves two types of data:
What Is Market Research?
Market research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions. The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you. Many entrepreneurs make the mistake early on of thinking that they know what their customers want without ever asking them. This can result in some very expensive mistakes later on. In order to find out what exactly it is that your customers want you must undertake a process called ‘Market Research’. This module will give you a basic understanding of the concept of market research, its various uses and provide guidance on how you can design your own market research questionnaire for your mini-company.