Describe the methods used to conduct Market Research

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Assignment 2

Describe the methods used to conduct Market Research

Definition of Market Research:

"The gathering and studying of data relating to consumer preferences, purchasing power, etc., esp. prior to introducing a product on the market. The study of influences upon customer and consumer behavior and the analysis of market characteristics and trends"

http://dictionary.reference.com/browse/market+research

Market Research consists of using a range of methods to gather different information of customers' wants and needs. If effective Market Research is carried out this will help produce a successful product/service.

The Key Themes of Market Research

When launching a product a business needs to conduct research on their competitors, customers' needs, and the environmental effects in relation to the product they are going to market. Market Research also includes all aspects of the marketing mix. The results obtained help to produce competitive products.

Customer Research

Organisations use customer research to find out about their current and potential consumers. It is important a business find out what their customers wants are so they can adapt their methods to fit in with potential and current buyers.

Market and market segment sizes - LOOK UP

Market trends - A business needs to look at previous market trends to predict if the products they are selling are going to be successful. Organisations need to forecast customers' needs by looking at similar organisations data (Secondary Research) or conduct research themselves on the business (Primary Research).

Brand Shares - Businesses need to find out about business shares

Changes in demographic factors -

Competition Research

Another factor of Marketing Research is competition. A competitive market has many businesses trying to win the same customers, this is why a business needs to research and compare other businesses products, prices, distribution methods and promotional methods. Competition research also provides information on overall aims and objectives, profit and overall financial situations and likely reactions to competitors plans.

Competition in the market place can be good for customers. Governments encourage competition because it can help improve these factors:

* Price: If there are several retailers, each retailer will lower the price in an attempt to win customers. It is illegal for retailers to agree between themselves to fix a price. They must compete for business.

* Product range: In order to attract and satisfy customers, companies need to produce products that are superior to their competitors.

* Customer service: Retailers that provide customers with a helpful and friendly service will win their loyalty.
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Marketing Environment Research

Another key theme of Market Research is considering the marketing environment. Marketing Environmental Research consists of the following:

* Environmental Influences - Environmental influences need to be reviewed when producing a product or service as it may affect both the local and social environment. Organisations need to consider if they have the correct resources to produce the product, if the resources they need in high demand and if there is a shortage of the resource needed?

* Social Influences - Businesses need to consider social influences when conducting marketing research for a ...

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