What is Market Research?
Market research is one of the activities that take place regularly in businesses and stores. Market research plays a very important role, being a reliable source of analytical data for businesses to make decisions related to other activities in marketing such as product development and commercialization. new products, adjust product characteristics, change selling prices, change or apply new distribution channels...
The American Marketing Association defines market research as follows:
Market research (Marketing Research) is a tool to help Marketing businesses, businesses connect with consumers, customers, the public through information and data. Data collected from research will help businesses identify opportunities, outstanding problems; building, monitoring, adjusting and evaluating marketing activities; help businesses understand more deeply about the market.
Steps to conduct a market research (marketing research)
The process of market research (Marketing research) in enterprises generally takes place in 6 steps according to the following diagram:
1. Define the problem and goal
The first job in the market research process is to identify the problem that the business is facing, need research data to provide a solution, the objectives to be achieved of the research.
- Business A is having an idea for a new product. To realize the idea, company A produces a small quantity of this product, distributes it to selected customers, and conducts a research on these customers' reviews of the product.
- Business B is seeing a decline in sales for men's facial cleansers. Business B has carried out a research to determine the cause, thereby making appropriate adjustments in the marketing strategy for this facial cleanser product.
2. Build a plan
Once the problem and objectives have been identified, the researcher needs to develop an effective plan to obtain the necessary information, at an estimated cost, and appropriate to the situation. corporate finance. The research plan will include identification of possible data sources, collection methods, means & tools, "sampling plan", contact methods, cost budget.
For the data source, the researcher can choose either, or both, of the following sources:
- Secondary data, which is pre-existing information data that can be collected from searching and searching.
- Primary data, which is new data, obtained through direct survey of research subjects.
Regarding the approach, researchers can use the following methods:
- Observational method: The researcher collects information through discreet observation of the research subject's activities (for example, the customer process at the store, the process by which the customer uses the product. ..)
- Survey method: The researcher conducts surveys to assess the thoughts and opinions of the people selected to participate on a particular issue.
- Behavioral research method: The person studies the subject's behavior through secondary data obtained from call history, purchase history, website visit history of businesses...
- Qualitative research method: The researcher screens and selects a small number of typical subjects to participate in the research. The researcher will ask some typical questions and listen to the answers and sharing from the participants
Regarding the means and tools to support the research, the researcher can choose the following items:
- Questionnaire: The researcher builds a list of selected questions and sends them to the clients for them to answer. Usually, the customer will be rewarded with a reward for completing the questionnaire, such as the right to buy a free product, a coupon, etc. Usually, the questionnaire is used in surveys with large number of people are selected.
- Direct Questions: Questions used in qualitative research methods.
- Technological equipment: Computers, telephones, cameras, recorders, printers... are equipment that may be essential for the research.
Regarding the "sampling plan", the researcher needs to clearly define 3 contents: Criteria for selecting subjects, size (maximum number), and reliability of subjects.
Regarding contact methods, research participants can choose to send questions and receive answers through: email, phone call, face-to-face meeting, Online (website, social network... )
Last but not least, the researcher needs a detailed budget, including clearly listed costs for items to be purchased and paid for.
3. Collect data
At this stage, the researcher begins to carry out the work of collecting information and data according to the set plan. The researcher needs to ensure that the information collected during the research is recorded or updated on the software and applications in a complete and clear manner, arranged in a logical and scientific sequence. learn.
4. Analyze data
Based on the collected data, the researcher begins the analysis, including statistical work, calculating to give the mean values according to the variables suitable for the research objectives.
After completing the research process, the researcher needs to present and present the data and research results in an intuitive, easy-to-understand manner and ensure scientific and logical character, so that the people and departments can authority to learn can have a sound basis in making decisions.
6. Make decision
Finally, businesses consult and make decisions based on the results gathered from the research.