Market research is the process of gathering and analyzing data about consumers, competitors, and the market environment in order to identify opportunities and inform business decisions. There are many different methods that businesses can use to conduct market research, including surveys, focus groups, and analysis of secondary data. The goal of market research is to help businesses understand the needs and preferences of their target customers and develop products or services that meet those needs. Market research can also be used to assess the effectiveness of marketing campaigns and to identify potential new markets for a business to enter.
Understanding Market Research
The purpose of market research is to look at the market associated with a particular good or service to ascertain how the audience will receive it. This can include information gathering for the purpose of market segmentation and product differentiation, which can be used to tailor advertising efforts or determine which features are seen as a priority to the consumer.
History of Market Research
Formal market research began in Germany during the 1920s.
Around the same time, market research in the United States took off during the advertising boom of the Golden Age of Radio. Companies that advertised on the radio began to understand the demographics that were revealed by how different radio shows were sponsored.
Types of Market Research
From there, companies were developed that would interview people on the street about publications that they read and whether they recognized any of the ads or brands within the ads that were published in the magazines or newspapers the interviewer showed them. Data collected from these interviews were compared to the circulation of the publication in order to see how effective those ads were. Market research and surveys were adapted from these early techniques.