Market Research gives us a clear picture of what types of new products and services may bring a profit. By researching the answers to some specific questions like the products and services already available in the market, whether or not the companies are meeting the customer’s needs and expectations; the owners can learn whether they need to change their package design or increase their delivery methods or even whether they should consider offering additional services.
Failure to do market research before diving into a business venture is like driving a car from one location to another without a map or street designs. Hence, to start anything, one should have a perfect map in mind and for that market research is utmost important.
There are two different types of research that can be conducted by a company to increase the revenue:
Primary Research is more related to explore the information about the local market trend and the customer’s needs. Hence, it takes into consideration potential problems that may arise while working thus it involves open-ended interviews or surveys with small numbers of people.
In specific primary research, the business takes a smaller segment of the audience and asks questions related to solve a particular issue.
Secondary Research is all about exploiting the data and public records, for example, trend reports, market statistics, industry content, and sales data to analyze the competitors.
Thus, the basic difference between Primary and Secondary Research is that the former is more concern with the customer’s information while the latter caters to competitor’s data.
There are various sources available to complete the Secondary research. Some of them are:
These are first hand information to conduct a successful secondary research. Government statistics are one of the most common types of public sources to gain secondary information.
This information often comes in the form of market reports, consisting of the company insight compiled by a research agency. It is a paid source of Information.
This source is more reliable in conducting Market Research. It contains the information of one’s own Organization like Average revenue per sale, customer retention rates, changes in trend and lots more.
Conducting market research can be an overwhelming experience. Even if one thinks that he or she knows their buyers pretty well, completing the research will give them new paths and channels that were not discovered before.