Market Research Methods for Beginners

We are looking to start a business that's sure to succeed. Well, one of the keys is market research! It's not just about creating effective business strategies, but also about understanding what consumers need and want. Here, we'll delve into the ins and outs of market research, from definition to effective research methods, especially for those just starting out in business.

Given the unpredictable nature of the market and fierce competition, it's essential to be savvy in running a business. Through market research, we can identify growth opportunities, anticipate consumer trends, and understand how our products can meet market needs.

Remember, thorough approaches can help us develop products that align with consumer expectations, reduce the risk of product failure, and allocate resources more efficiently.

Understanding Market Research

Source: Freepik.com

Market research, also known as marketing research, is an activity aimed at evaluating the effectiveness of our products and services in the market. The goal is simple: gather data to generate brilliant marketing ideas.

There are many exciting methods to conduct market research, such as interviews, surveys, product testing, and organizing discussions with specific groups. Market research can be conducted by in-house teams or with the assistance of external research experts.

With market research, we gain a deeper understanding of what consumers need and want. From there, we can develop products or services that truly align with their desires.

So, it's safe to say that market research is like a secret key to obtaining vital information from our target market. This also helps to avoid incorrect assumptions, allowing you to make more confident and intelligent business decisions.

The Functions of Market Research

Source: Freepik.com

Market research serves several important functions for a business, including:

1. Product or Service Evaluation

The primary function of market research is to evaluate products. Here, we can assess the effectiveness of our marketing programs or strategies previously implemented. We can also compare our brand's position with that of competing products. This helps us identify potential issues and make more informed decisions.

2. Understanding the Market Scope

Market research is a valuable tool for understanding the market. We can delve deeper into understanding our consumers' preferences and dislikes. By thoroughly understanding consumer needs, we can develop products or services that better meet market demands.

3. Market Prediction

In addition to controlling the market, market research can also be predictive. You can try to forecast what might happen in the market. Since market trends are never certain, it's essential to have predictions to prepare for various possibilities. Typically, market research serves as the primary basis for determining business strategies and future plans.

4. Monitoring and Control

The final function of market research is monitoring or controlling. Through market evaluation, you can monitor everything happening in your business. This includes operations, market trends, customer data, and measuring the effectiveness of marketing efforts. Market research acts as a superpower for controlling your business.

Market Research Methods for Beginners

Source: Freepik.com

Now that you understand what market research is and its functions, let's discuss some simple market research methods suitable for beginners:

1. Surveys and Getting to Know Consumers Up Close

The first market research method, essential before starting a new business or launching a product, is to conduct market surveys. Apart from understanding market conditions, these surveys also provide insights into consumer behavior and shopping habits. With this information, we can prioritize what consumers value most, whether it's price or product quality. So, we can choose the most suitable product to sell.

During market surveys, there are four fun tricks you can try:

• Product testing.
• Identifying market segments.
• Assessing customer satisfaction.
• Checking market prices to match consumer budgets.

2. Identify Competitors

Competition in the business world is like a never-ending story; there's always something! But don't panic just yet. It's crucial to become familiar with competitors in your area and develop marketing strategies to anticipate competition to keep your business on fire in the future.

3. Find Creative Ideas Needed by Consumers

Maintain warm interactions with customers because it's essential in the business world. Conduct surveys or ask questions about suggestions or desired products from customers in the future. Then, consider all the feedback, ensuring that the innovations you adopt still maintain the unique identity of your business.

4. Communicate Friendly

When conducting market research, a friendly attitude is essential. Support from others is crucial to smooth the research process. Speaking politely during market research, whether through questionnaires or face-to-face interactions, will garner better support. This friendly attitude can also positively influence the image of your business.

5. Market Testing

Market testing is done to see how consumers respond to products or services that will be sold. For example, providing free product samples before launching on a larger scale. Although it requires costs, market testing helps understand whether a product is ready for sale or needs improvement.

6. Ensure Products Target the Right Market

Market research helps ensure that the products to be sold are suitable for the target market and meet consumer needs. This ensures smooth sales and optimal results.

What Are the Methods for Conducting Market Research?

Source: Freepik.com

There's not just one method for conducting market research! There are many ways to do it, including:

1. Focus Groups

This method involves gathering a few people for a group discussion. Here, you can test products, demonstrate their use, ask about their needs, and get their opinions on the products or services you offer.

2. Interviews

Interviews can be conducted in person or online. You can ask consumers or experts directly to get the information you need. With a good understanding of customers, you can develop marketing strategies, find additional features for products, or even develop products or services.

3. Questionnaires

Questionnaires are like forms containing lists of questions to be answered by respondents. Usually, questionnaires are given to people who meet certain criteria. For example, if you want to check the economic conditions or material needs of average students in Indonesia, respondents will be Indonesian citizens, aged 18-25, and current students.

4. Surveys

Surveys are similar to questionnaires, but the questions are usually fewer. Then, respondents are selected randomly.

5. Observation

Observation involves directly observing the object being studied to gather necessary data or information. For example, you can directly observe consumer behavior or trends through social media platforms. With methods like these, market research can provide insights into consumer preferences and needs, help you make the right business decisions, and support the development of products and services that are more targeted!

That's the exciting discussion about understanding market research or market research, its functions, and market research methods that beginners can try. In essence, market research is a mandatory step before making critical decisions about the products or services to be offered.

The explanations above can increase your knowledge. If you want to learn more about growth marketing, read other articles on the ESB inspiration! The topics will be very helpful for those learning about good business practices.