Market Research: The Backbone of a Business Venture

Market research is vital before beginning any new business venture. As an entrepreneur it is very essential to conduct proper research regarding the existing market scenarios before launching a new product or service.

Benefits of Market Research

Online market research is considered one of the most effective and cost efficient tools that can help to achieve your goal. To achieve your business goals it is important to have a comprehensive knowledge about the market and the demand graph.

Previously market research was conducted only by big companies but now even the small companies can conduct researches as it is quite affordable unlike the earlier days. Today a number of techniques are being incorporated by companies to conduct researches. Both online and offline research can be conducted to obtain a holistic analysis of the market situations.

Before launching any product or services, entrepreneurs must understand the demand for the particular product and the effect of its supply on the consumers. Through market research entrepreneurs can analyse the market trends, tactics adopted by the competitors, precise requirements of the consumers and how well they have accepted a particular product. Entrepreneurs can also explore new ventures and analyse how to improve existing products.

Through such researches, entrepreneurs can evaluate their competitors as well as have a better and enhanced communication with potential customers. It is easier to understand the ever changing buying patterns of the consumers through such researches.

Market Research in Different Forms

Market research is mainly of two types-primary and secondary researches. Secondary research involves analysing existing data, reviews in articles and so forth. It is quite inexpensive compared to the primary research which is very expensive. Secondary researches can be conducted by the small start up companies for a better business opportunity.

Primary research involves quantitative and qualitative research methods. Primary research is expensive as it requires collection of data through emails, phone and interviews. These methods require both time and money but can aid in collection of precise information.

The quantitative research involves statistical analysis. Interviews are conducted in a systematic approach to understand the behavioural patterns of the consumers. The qualitative research is conducted mainly to analyse the present scenario of the existing markets. Different methodologies are incorporated in both these techniques of research.

Market research consultants are hired by companies to conduct researches and analyse the market situations. These consultants adopt different methods of research and give a detailed report of their research to the companies.  

Another form of research that is quite effective is the descriptive research which helps to analyse why a particular trend exists in a market and also to investigate the competitors of the company. Researches can also be conducted to analyse the effect of a new product in the market and thereby devise future business plans. Companies conduct this casual research to predict the future of business when a new product is launched.

Business goals can be achieved with proper market research which contributes to a better relationship with existing customers. Business can be upgraded by introducing new policies, improving products and services and through proper channelization of funds.