Market research is the gathering, recording and analysing of data to address the marketing problems of a business. Market research must be specific to the problem of a business. The marketing problem must therefore be clearly identified so that the appropriate market research may be conducted.
Types of Market Research
Consumer Research – garners information on consumers’ feelings, thoughts and reactions towards a company’s good or service.
Product Research – determines customer acceptance of the product.
Distribution Research – used to identify the most suitable channel of distribution for particular products.
Advertising Research- Identifies the most suitable media to present the advertising message.
The Marketing Research Process
This consists of five steps:
1. Identifying or defining the problem.
2. Developing information sources.
3. Collecting the information.
4. Analysing the data by using charts and graphs
5. Presenting the findings.
Reasons for Conducting a Market Research
Market research provides managers with current, relevant, accurate and reliable information concerning competitors, advertising, distribution and potential and loyal customers. This information assists managers in making decisions about packaging, product design, pricing, distribution and advertising.