According to Duboff (2011) marketing research is the process of collecting information about the business’ competitors, market, and customers. I conducted an interview with three Subject Matter Experts (SME) doing research work as their primary occupation to understand the role of market research. There were three open-ended questions that I asked the experts in the interview.
What are the methods used in conducting market research?
How is the success of a market research measured?
What are the roles of market research?
From the response of the experts, there are two methods used to conduct market research, the primary and secondary methods. The primary method uses such tools as focus the group, surveys, usability test, and task analysis. The method is used to collect first-hand information from both the potential and existing customers targeted by the business in the specific market of focus. The secondary method employs the information obtained from statistical data such as census and customer price index to gather information about the demographical, social, and economic factors of the customers so as to gain competitive advantage (Cadle, Paul & Turner, 2014).
The success of the market research is measured on the fold of its ability to determine the market needs of the customers and analyze the size of the business’ competition. Therefore, as argued by Cadle, Paul & Turner (2014), the market research is successful if it enables the business to determine the feasibility of its services and products and how to promote them as well as develop competitive strategies.
There are five significant roles of market research. First is to understand the preferences and characteristics of the business’ customers better than the competitors. Second is to identify the opportunities to grow the business and increase sales. The third role is to recognize the problems in the market industry so as to plan their solutions and increase the business’ sustenance and survival. Fourth is to monitor the competition in the market so as to allow the business to remain relevant and profitable. The final role is to promote the diminishing of risks by enabling the business to make informed decisions and not rely on gut feeling or intuition (Duboff, 2011).
References
Cadle, J., Paul, D., & Turner, P. (2014). Business Analysis Techniques: 99 Essential Tools for Success (2nd Ed.) Swindon, England: BCS Learning & Development Ltd.
Duboff, R. S. (2011). The Market Research Magic is gone. Marketing Management,
20 (4), 45 – 46.
