Market Research


Market research refers to the type of research businesses usually perform to find information about customers, competitors and business practices in general. They do this research to gather and analyze data about customers’ likes and dislikes, about new products to market and to find ways of improving their business. For new businesses, it forms part of the business plan to help them determine if the proposed business will be successful and to help them obtain financial support in the way of loans and investments. Through such research a business can help determine if a percentage of the population would be interested in buying its products or services.

There are two main ways in which companies conduct market research. In secondary research, they use the information previously gathered by other sources and apply it to the products or services they sell. This method is less expensive because such information is readily available. However, it is often not specific to a particular product or service and does not provide data that is of any value to the company. The other method of doing market research is called primary research. In this method the company undertakes the research on its own, usually through surveys by mail, email or by telephone surveys. It conducts interviews, does observations, and conducts field tests on specific products.

Some of the questions a company would like to have answers for in their research include:



Other information that would be beneficial to companies in the market research would help identify the potential customers and where they live. The information would also tell them which products they buy regularly and in what quantities. The market trend refers to specific times of the year when sales are up, such as selling barbecues during the summer. It is difficult to determine this factor, though, when bringing a new product to the market.





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