If you were to launch a product, you will have to check the complete market to find out what type of products does the competition have and what are the features of competitive products. this exactly what we called Market Research.
The common Methods of Market Research
In fact, observation works well in retail markets; mostly used in retail, primary surveys are done while observing subjects in their natural surroundings or by observing their natural behaviour.
it involves watching your potential customers and their behaviours in action. This means – without interacting – watching customers buying products or services similar to yours, listening to what they say as they shop, noticing what they buy and how much they paid.
Notice, this type of market research works best if your business caters to customers, not to other businesses. it provides many insights but can leave questions unanswered.
This method of market research involves getting feedback from potential customers through a structured, multi-question survey. Market research surveys or questionnaires can be done over the phone, through mail/email or in person. they are Sent to the address of potential customers who complete the form and send back in a pre-paid envelope. it is Relatively cheap.
You may need to conduct several surveys to several groups in order to get feedback from all possible types of customers. but be cautious about making major business decisions based on this small amount of feedback.
3- Focus groups
Focus groups are a good way of getting detailed information about customer tastes and preferences. Used for forecasting the application of a product, focus groups are groups of potential customers who are brought together to discuss a focused topic about a product or market. The people in the focus group are hand-picked and their discussions are then monitored to come up with new ideas of products or to improve the current line of products.
4- Test marketing
In this type of primary market research, the product is sold in a small pilot market and the sales and service issues of the product are observed and assess customer reaction. Then, the findings are magnified on a large scale and forecasts can be made as to how the product will perform in a large scale.
Test marketing can be a good predictor of how a new product or service will be received by the larger market. Software firms often test-market their products by offering “beta” versions for testing by a small group of potential customers.
Interviews are like focus groups, but there is only one participant speaking to one researcher, who leads the discussion. Interviews are well-suited for product or service ideas that could be too personal or private for group discussions, like personal hygiene products or financial services. there are two types of
- Telephonic interview
as expected, most people are busy to answer calls and hence this type has a low conversion rate.
- Personal interviews
In malls, public gatherings, or other such places, a standard market research questionnaire can be used to directly ask questions to the customers. Similarly, banks can use this type of market research in ATM’s or in their branches.