Market Research For Business/planning
Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product. Peter Drucker believed market research to be the quintessence of marketing.
There are two major types of market research. Primary Research sub-divided into Quantitative and Qualitative research and Secondary research.
For starting up a business, there are some important things:
- Market information
Through Market information one can know the prices of different commodities in the market, as well as the supply and demand situation. Information about the markets can be obtained from different sources, varieties and formats, as well as the sources and varieties that have to be obtained to make the business work.
- Market segmentation
Market segmentation is the division of the market or population into subgroups with similar motivations. It is widely used for segmenting on geographic differences, personality differences, demographic differences, technographic differences, use of product differences, psychographic differences and gender differences. For B2B segmentation firmographics is commonly used.
- Market trends
Market trends are the upward or downward movement of a market, during a period of time. The market size is more difficult to estimate if one is starting with something completely new. In this case, you will have to derive the figures from the number of potential customers, or customer segments.
Besides information about the target market, one also needs information about one's competitors, customers, products, etc. Lastly, you need to measure marketing effectiveness. A few techniques are:
- Customer analysis
- Choice modelling
- Competitor analysis
- Risk analysis
- Product research
- Advertising the research
- Marketing mix modeling
- Simulated Test Marketing
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Famous quotes containing the words market research, market, research, business and/or planning:
“Today the tyrant rules not by club or fist, but, disguised as a market researcher, he shepherds his flocks in the ways of utility and comfort.”
—Marshall McLuhan (1911–1980)
“Talk of a divinity in man! Look at the teamster on the highway, wending to market by day or night; does any divinity stir within him? His highest duty to fodder and water his horses! What is his destiny to him compared with the shipping interests?”
—Henry David Thoreau (1817–1862)
“Men talk, but rarely about anything personal. Recent research on friendship ... has shown that male relationships are based on shared activities: men tend to do things together rather than simply be together.... Female friendships, particularly close friendships, are usually based on self-disclosure, or on talking about intimate aspects of their lives.”
—Bettina Arndt (20th century)
“The business of a seer is to see; and if he involves himself in the kind of God-eclipsing activities which make seeing impossible, he betrays the trust which his fellows have tacitly placed in him.”
—Aldous Huxley (1894–1963)
“In preparing for battle I have always found that plans are useless, but planning is indispensable.”
—Dwight D. Eisenhower (1890–1969)