Market research is essential for the entrepreneur to know how the market is behaving so that he can position himself in an ideal way
If you want to know a little more about these surveys, how to apply them in your segment and what are the most common types, this content was made for you! Read the full text and stay on top of this concept!
What is market research?
In short, market research is an effort that entrepreneurs have to gather information about a sector of the economy, including available supply and demand, for example.
It is one of the most important components for business owners to be able to establish both their business plans and marketing strategies. That’s because this research allows us to know, at a minimum, which is the market in which they are inserted.
Therefore, it is ideal that you know as much as possible about your audience, from personal data to habits related to consumption, as well as identifying who the competitors are, how they operate and what prices they offer. And it is through market research that you can get this panorama. This study also allows knowing more indirect information, such as the market’s history, what are its characteristics in regions not impacted by the sector and what are the global trends in the area, for example.
In other words, it is an essential factor for you to be able to keep your company within what the market expects, as well as offering a strategic planning aimed at the future of your industry.
Why apply market research?
Entrepreneurs who do not focus on studying the market they are in tend to fail in their business. That’s because market research brings a bigger picture for managers who want to be aligned with market trends.
It is noteworthy that this type of study is not limited to the analysis of competition. Your research involves many other data, such as price analysis, the durability of your product or service in the market or even what customers expect from companies like yours.
It is necessary to know the environment in which your company operates, what are its challenges and what strategies can be explored. These are all items that market research can deliver.
If we are talking about innovation, it is through this type of study that companies are able to stay on top of what is new in the market. Practice can generate interesting ideas and insights for any type of segment.
Thus, when doing market research, the biggest benefits are:
- test new products, campaigns and services before launching them;
- assess the viability of a business;
- understand how the market behaves and even create new segments;
- develop market strategies that are more competitive;
- explore new market niches;
- optimize business processes ;
- discover new information;
- between others.
The main types of market research:
Types of Research: Exploratory Research
When a company or a project is starting, many questions often arise. After all, there is a lack of basic information about the market for professionals to follow a successful path.
Therefore, exploratory research is a study tool for those who are starting something that does not have much data. In this sense, this research does not have as many ties, and it is freer to try to find what is best for the project.
This is because, in the beginning, any doubt can be relevant and point to some point that can generate useful knowledge. Therefore, the formulation of questionnaires is usually more flexible and is under the responsibility of the professional responsible for the study.
It is noteworthy that, here, one should not expect statistical conclusions, not least because it works more as a preparation of the ground than as something that will bring exact answers.
Search Types: Descriptive Search
On the other hand, descriptive research has a more palpable bias than exploratory research. In other words, because it already starts from a condition that already has some data, it allows us to arrive at more concrete knowledge.
Thus, descriptive research is mainly intended to validate hypotheses and find flaws in the planning that has already been developed.
This type of study is mainly useful when a more specific analysis is needed, such as when the company seeks to know its customers’ data such as age, social class, gender and region.
This type of data tends to be a good addition when carrying out some planning because it yields basic information about the company’s target audience.
In addition, descriptive research also has the characteristic of testing ideas that have been suggested, thus generating a character of qualitative analysis, but with a quantitative approach.
Therefore, descriptive research can be a tool to go deeper into the items covered by exploratory research.
Types of Research: Causal Research
Finally, we have causal research. As its name implies, it determines cause-and-effect relationships, taking into account the findings that descriptive and exploratory research has generated. Thus, this type of research generates validation tests.
Some variables are used to test insights that were obtained in other surveys. The intent is not to find out if something is just right or wrong, because some variables may prove to be partially adequate.
Two most common applications of this type of survey are to determine the use of funds in a project, as well as to verify the effectiveness of results. Finally, there are several models and ways that market research can help a business owner. That’s because they tend to give a bigger picture about the segment in which the company is inserted.