Market research refers to the process of carrying out extensive research to determine whether goods and services are likely to satisfy customer requirements (Arora & Mahankale, 2013). It is way of making sure that a new or existing business rolls out products or services that will have a positive impact in the market. Therefore, market research is an important requirement to both new and existing business holdings. In the case of new businesses, one is likely to get financial assistance if they have done proper research on the market. This information can be used to guarantee the success of a new business. Market research is fundamental step that should be taken by all business because of the benefits that come with it (Beri, 2008). The main argument in the paper is that market research is an essential part of a business regardless of whether they are new or not.
First, it would be important to explore the concept of market research before going deep to outline its benefits. Basically, there two types of market research, which are Primary Market Research and Secondary Market Research. A research on a particular market is likely to return qualitative and quantitative information. Qualitative information involves opinions obtained from different people in the market through interviews and surveys.
Primary Market Research entails interviewing or talking to customers to get their thoughts on a new product. In most cases, this kind of research will give qualitative information. This information can be interpreted to determine the factors that influence the change in customer behavior. It gives information that is core to the success of any business both new and old. On the other hand, Secondary Market Research involves research that has been done by outsiders. This means that the research has been done by other people or other organizations in the same industry. A business can make use of results from secondary market research if it is relevant. The main advantage of secondary research is that it is a very cost effective method of gathering valuable information on market forces in a particular industry or region. Some of the sources of secondary research include libraries, government archives, internet, trade organizations etc.
Market research helps a business to identify factors like demographics, shifts in the economy, customer behavior and identifying worthy competitors in the market. The process of planning to start a new business or rolling out a new product requires extensive market research. This is because without a proper market research strategy the business is likely to fail because of its inability to satisfy the needs of the consumers.
One of the main benefits of market research is that it helps one to communicate in an effective manner. Research on the market returns valuable information that can be used to determine effective communication channels for the business. It is important for a business to understand its customers. This...