Customers are the foundation of your business. In order for your company to succeed, you need to understand them and their relationship to your products and services. That is where market research comes into play.
According to the Small Business Administration, market research is “the process of
analysing data to help you understand which products and services are in demand, and
how
to be competitive.” That data can include valuable intelligence about your
marketplace,
your industry, your competition – but especially and most importantly, about your
customers and how they feel about your company and its offerings.
In short, market research helps you understand three things: your industry, your
competition, and your target market. You can use it to:
Market research provides critical information about your market and your business landscape. It can tell you how your company is perceived by the target customers and clients you want to reach. It can help you understand how to connect with them, show how you stack up against the competition, and inform how you plan your next steps.
Types of Research : Primary vs Secondary
Quantitative vs Qualitative Business Research
There are two major types of data you can collect in market research. Both can be valuable for different purposes.
There are a variety of ways to collect data. The method you choose depends upon how geographically dispersed your target customers or clients are. Are you a business in a local community, or do you sell to or serve customers nationally? It also depends on your budget, and the resources you have to run the research – whether you’re doing it yourself or hiring a research agency.