What’s Included in Market Research?
Do you want to know what areas market researchers study? If yes, you have landed on the right page. Read more.
Industry and Market Environment
As the name itself denotes, primary market research is all about gathering information about different verticals of the market. In this segment, companies gather information about the industry and market environment.
They also try to understand the external factors that are giving a good impact on the industry. It is a great notion to emphasize the external factors, as many times, these factors play a bigger role in deciding the growth of a particular industry.
Researchers also study customers to develop the customer profile. Customers are the ultimate king in the market, and most of the activities taken by the business are to tap more and more customers. Even researchers get their salary and incentives from sales figures.
Competition is the third important factor to study. As a researcher, you not only study business within your industry but also outside your industry.
Let’s say you are producing a particular type of mustard oil, but you have to keep the focus on the trends in other edible oil like coconut, sunflower, palm, etc. The price increase in the other segment directly and directly affects your business prospects.
How can we forget the market or business regulations? A business has to deal with many major and minor factors. Governments keep changing the policies to bring more employment and to enhance economic activity. Understanding business regulations help in developing plans, and you become future-ready to cope with any regulations changes.
The market is made with people from different backgrounds, gender, income group, and much more. For your business, they are a customer or consumer, but they are very much fragmented in details. As a good business, you need to understand their demographics so you can make wise and fast decisions.
Let’s say you sell a consumer product and through thorough market research you got to know that low-income group people are the major consumer of your product. So at a time of high inflation, it is not a wise decision to increase the price of the product. If you do, you might see a decrease in sales figures.
Market size, trends & marketing channels
Many rules of economics apply to market research. If the demand is high, you need to increase the supply. So it is always advised to study size, trend, and marketing channels. Once you manufacture a product, it reaches the consumer with the help of distribution channels.
Here the role of transporter, wholesaler, retailer, and delivery person comes into play. Any major disruptions in the marketing channels have the potential to break the product chain, and it may lead to business losses.
Sources for researching industry and market
The market is full of data, but you need advanced technologies and business acumen to extract information from that data.
Marketing research kit, Newspapers (Print & Online), Industry expos, Trade shows, Business support service providers, Business & industry associations, Internet search engines, and others are the major sources to gather information.
As a business, it is wise to emphasize doing primary market research or purchasing it from the experts. The research paper gives great insights and helps in making faster and accurate business decisions.