What is market research?

Introduction

Market research is the process of acquiring, analysing, and interpreting data on a particular market or industry.

Purpose and Importance

Market research is conducted to provide insights into a business, including but not limited to its services and/or products, consumers, market, and competitors. Market research in business takes out the assumptions or guesswork involved. Information acquired enables relevant stakeholders to make data-driven decisions, establish effective business plans, and increase your chances of long-term growth.

How do businesses conduct market research?

Companies can carry out market research either in-house or outsource to market research firms. Market research firms are agencies that offers the gathering and evaluation of its clients’ service, products, target market and audience, and other stakeholders involved in the market. Hiring a a dedicated agency enables business to outsource their market research requirements to professionals while focusing on their core operations.

When would businesses conduct market research?

These are some reasons (but not limited to):

• Expanding their business into an unfamiliar region
• Before launching a new product or service
• Evaluating the feasibility of a potential market
• Exploring partnership opportunities with local stakeholders such as OEMs and distributors

What industries conduct market research?

It is conducted throughout any industry that require more information regarding their market. It spans from B2B industries such as manufacturing to B2C such as beauty.

4 basic market research methods

1. Primary Research

Primary research occurs when the data or information is collected directly from the source. This can include directly interacting with the source of the research, such as to direct consumers.

Benefits and Limitations of Primary Research

Primary Research is beneficial as the approach can be tailored and customised to collect the relevant and in-depth information. The data collected will also be real-time and up-to-date. However, it has its disadvantages as it may require resources and the appropriate market research skills to carry out the research to its full potential.

Examples of Primary Research:

• Site Visits such as in-store and product surveys
• Interviews such as expert interviews, focus group discussions

2. Secondary Research

Secondary research utilises information that is already exists. Information available is then gathered and analysed according to the needs of the business. This method provides comprehensive insights into consumer behaviours, market and competitive analysis, as well as regional trends.

Benefits and Limitations of Secondary Research

The benefits of this research method is that data gathered can be incorporated from a wide range of sources and increases the breadth of information on the topic. However, it has its limitations as the information available may not be up-to-date and may be biased. Being able to discern the information source is an important skill to determine whether the available information would be relevant or not.

Examples of Secondary Research Sources:

• Governmental and Trade Statistics
• Regulatory and Legislation Information
• Company, Market, or Consumer Reports
• General Media: Newspapers, Websites, Articles, Forums
• Social Media Posts

Here at GLOBAL ANGLE, we utilise Local Market Intelligence services to gather information from various sources to present information that enables clients to gain market and consumer information, as well as regulatory and cultural awareness.

3. Qualitative Research

Qualitative research gathers data such as emotions, perspectives, opinions, perceptions, and behaviour of the target market and audience.

Benefits and Limitations of Qualitative Research

Qualitative research is not bound by quantitative methods, which may be restrictive. It is also a more flexible approach, where the researcher is able to adapt the questions according to the insights being shared. However, it also means that the qualitative research may not be statistically representative and be subjective according to the researchers’ interpretations.

Examples of Qualitative Research

• Content Analysis
• Site Visits such as in-store and product surveys
• Interviews such as consumer surveys, focus group discussions

4. Quantitative Research

Quantitative research focuses on measurable analytics, utilising numbers or numerical values to identify trends, benchmarks, and statistical relationships.

Benefits and Limitations of Quantitative Research

Quantitative research allows for a bigger sample size, ensuring that the data analysed is robust. It is also simpler and faster to conduct, through the usage of online surveys. However, this research method requires a specific skill set to efficiently extract the data, or the analysis may be open to misinterpretation and thus misleading results.

Examples of Quantitative Research

• Questionnaires
• Data Analysis

Market Research FAQ