When entering a new market or launching a new product or service, the first important thing a business needs to do is do market research. With hundreds of questions posed as follows: Is the new product successful or not? Who are the target customers and how to find them? Is the product price reasonable? Which business is effective? Let's find out what market research is with Giaiphapdonggoi.net!
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1. What is market research?
Market research is viewed as a systematic process of collecting, analyzing and interpreting information. Information can be about the target market, consumers, competitors, and the industry as a whole. This is the foundation of any successful company. Research has a number of different purposes - from identifying a new market to launching a new business.
What is market research?
Market research helps entrepreneurs make informed decisions. It can take the guesswork out of innovation and channel resources into the ideas and projects with the most potential. Businesses/companies at different growth stages do market research for different reasons. There is a list of ways businesses can use market research:
Determine the feasibility of a new business. If market research shows there is little or no demand for the product or service, the business is unlikely to succeed.
Identify and develop potential new markets.
Keep a close eye on marketing trends and develop strategies on how to stay ahead or adapt to changing market conditions.
Test demand for new products or features.
Ensure optimal product placement - how, when and where a product should enter the market.
Improve and innovate their business. You can identify problems early with certain aspects of your business, such as customer service. This can help companies weather costly disruptions later on.
Drive the success of their advertising campaigns. By assessing customer sentiment and understanding their brand perception, businesses can better shape their branding and marketing strategies.
2. How market research works
Whether you intend to enter the consumer, commercial or reseller market, it is important to define what your market needs and wants before you enter the market or develop a product or service. and market to that market. If you enter the cold market, you could be wasting time and money on an offer that your market cannot afford. For that purpose, a business typically conducts market research to assess the viability of a particular brand or product or service.
How does market research work?
Market research can be done in the form of any planned activity that helps a business better understand the market, related customers and competitors. This process has three steps:
Data collection: Two types of data are primary data (data you or someone you hire first capture) and secondary data (compiled data that you access). There are many types of research techniques you can use to obtain this data, which are discussed later.
Data Analysis: Typically, you will need to organize and reduce (or simplify) the data and then study it. For example, you can eliminate items where the data reveals to be of least interest to the customer, a method of statistical analysis known as factor analysis. You can also group similar but mutually exclusive items, which is called cluster analysis.
Assess market potential: Use your findings to determine market size, expected market share, and consumer information in the market, along with information about competitors, following That makes decisions about the viability and profitability of your product.
For example, let's say a clothing retailer wants to evaluate the potential of adding shoes to its product line. To begin with, it collects data using customer emails it has collected through its store loyalty program to distribute a survey to those customers to gauge how well they are doing. their interest in buying shoes from the company and what features do they most want to see in those shoes. The business then analyzes the data by studying the survey responses and identifying trends in customer interest (e.g. the majority of respondents may express an interest in purchasing athletic shoes). sports).
Finally, the company evaluates the profitability of entering the shoe industry and uses the
