There is no denying that data-driven businesses nail it and dominate markets. When businesses are able to understand their eco-system through precise, insightful market research, they are more capable of driving growth the right way and in the right direction. As such, effective market research holds a vital position for any business.
Moreover, determining ones expectations from a market research is as important. There are various types of market research that aims at covering different areas of the big picture. As a result, they are often confused.
Towards determining the specific type of market research that is right for your business, here are some of the most common types that you must be aware of:
The main goal of market segmentation is to allow for more effective marketing strategies. This is achieved by grouping consumers based on how they are expected to react to an ad or accept a product’s variation. This type usually requires the analysis of huge amount of data using sophisticated software.
By getting an idea of the expected demand in a given market for certain product, companies are able toexecute production processes more effectively – in context with the rising or declining demands of the particular products or services. This type of market research is useful for either introducing new products, or expanding product coverage by penetrating a new market.
This type measures the viability of a new product or service. This is done by investigating the availability of alternatives along with the market readiness to accept such product or service. Take, for example, Google Glasses; the product failed miserably because the market was not yet ready for such technology. The question is: did Google test the market readiness before releasing this product? Moreover, an effective product testing helps companies in determining the product or service with the highest potential in a given market.
Having an understanding of the competitive landscape is a popular type of market research. It helps in providing invaluable information especially to new businesses. Such research would cover the competitive force in terms of market domination, competitive advantages, among other factors. Effective competition analysis can offer a great template for carrying out business productively.
Industry or market analysis has a wider scope. This type scans a given industry covering elements like economic and political conditions, government regulations, as well as competition and consumer demand. These serve as the centerpieces of productive market research aimed at capturing the potential of the given industry.
To Rap Up...
These are the most common market research types. Market research can be also categorized based on other factors such as data collection method. However, we wanted, here, to show the different types with respect to business objectives and the type of intelligence needed.
You must aim at making use of the specific type of market research depending on meeting your unique requirements. When you make use of the right market research type for your business, you can get the right intelligence that is needed for pushing your business forward. Whether you are interested in learning more about the buying habits of the end consumers or how much they are willing to pay for the given new product, and much more; effective market research can help you out.