Market Research a very important component of business strategy. it is a process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face
Types of Market Research
Exploratory Market Research is an important part of any marketing or business strategy. Its focus is on the discovery of ideas and insights as opposed to collecting statistically accurate data. The researcher uses exploratory research when he has very little information about the research problem and needs to gain insights about it before finding the solutions to it. It requires the researcher to clear his concept, gain insights, formulate problems, eliminate impractical ideas and formulate a hypothesis to check the relevancy of the research design.
Descriptive Market Research is a form of conclusive research used to describe both the composition of a group in such terms as income, gender, age and education and the characteristics of group members in regards to both current and future behaviour. The descriptive research is concerned with testing the hypothesis to find out the accurate answers to the research problem. The objective of the descriptive market research is to measure the frequency with which the things occur and the extent to which the variables under study are correlated.
Causal Market Research The investigation into an issue or topic that looks at the effect of one thing or variable on another. it might be used in a business environment to quantify the effect that a change to its present operations will have on its future production levels to assist in the business planning process. it is conducted to establish the cause-and-effect relationship between the variables. this research is carried out to explain the facts that why a certain change in one variable is observed due to the change in the other.
Predictive Market Research is a marketing technique that involves using data analytics to determine which marketing strategies and actions have the highest probability of succeeding. Companies that utilize this strategy strive to make data-driven decisions to yield better. As the name suggests, predictive research is conducted to forecast or predict certain variable for which is designed. Such as predicting future sales, the projection of growth, test market to predict the success of a new product, defining of firm’s product line. it classified as Quantitative Market Research and Qualitative Market Research.