What is Market Research – Meaning and Importance?

Did you know you need help from your customers to do Market Research?

The term Market Research stands for the research about a particular factor that affects a business. It is a process where experts gather information from different sources. After collecting, they refine it to get more structured data. This data further helps in the decision-making process in a business. 

Market research is essential as it helps business owners and management to make informed decisions. 

This article will delve into the Importance of market research and why you must invest in it for your business. But first, let's explore the origin and transformation of Market Research over time.

How Did Market Research Started?

Today's Market Research procedure enabled by powerful technology like AI wasn't the same when it first existed. The first time something like Market Research was done was in the early 1900s. However, at that time, only face-to-face polls were done by advertisers to identify the readership. 

But soon, it was changed when Daniel Starch coined the idea to learn about the audience that the ads were reaching. So that ads can be transformed based on their needs. 

In the 1940s, qualitative data collection methods, such as focus groups and interviews, were introduced. Can you guess how long it took for quantitative approaches to come into play?

Around 20 years. In the 1960s, quantitative data-collecting methods were introduced. Another thing that was changed during this time was a shift from considering psychological aspects to social sciences. 

After that, the modern Market Research era started with the introduction of the Internet. As the Internet started reaching every home, Market Research became easier. Finally, today, it is getting powered with Artificial Intelligence, as mentioned above.  

Why Market Research?

Brand Health Track

Market research for tracking brand Health deals with measuring your brand's ability to meet the company's goals. 

Consumers' perception and needs for identification

Market research to identify the needs of consumers helps to make improvements in products and services.  It helps to make changes based on the perspective of a consumer. 

Industry Trend Research

Trends keep changing over time, and keeping updated about these trends is important and can be done through market research. 

Tracing Competitor Strategies

It's one of the most important purposes of market research. It allows businesses to keep track of their competitors' strategies. Moreover, the research data helps to derive marketing and advertising strategies to tackle the competition. 

Market Dynamics

Many times, there are instances of instant or exponential growth for businesses. Sudden changes in the Market create these instances. Market research can help in identifying such dynamics with the help of data. 

Identifying Market Drivers and Challenges

Root cause analysis and force field analysis are some market research types. They help to learn about the market drivers and challenges faced by a business. 

What Are the Types of Market Research?

Primary Research

Primary research includes a collection of data gathered directly from individuals or groups. It provides a fresh perspective on certain research objectives. Moreover, it is customized as per your needs

There are two types of methods for primary research:

1. Qualitative Research

This type of research helps you to understand the underlying emotions, opinions, and emotions of individuals. Hence, it provides a deep view of customer behavior. 

2. Quantitative Research

It focuses on the collection of numerical data and other quantifiable metrics. With the help of quantitative research, you can make statistically significant conclusions.