Market research in entrepreneurship

Posted by Imam Larh on Monday, 19 March 2018

Market research is a systematic process undertaken to collect data, record, process, and analyze data/information relating to the marketing of products/services. Market research is done, like other scientific research process procedure, that is start collecting data, processing data, analyze, and draw conclusions.

The purpose of market research is to gather information for decision making. Entrepreneurs always need information and knowledge about their markets. Market research can make better marketing decisions. 

Market research can help us to find profitable markets, choose products that can be sold, determine changes in consumer behavior, improve marketing techniques, and plan realistic goals.

An already large company may be able to appoint marketing experts to market research or hire market research consultants. However, for a relatively small individual enterprise, the entrepreneur may not be able to hire a marketing expert. However, entrepreneurs should still be able to know customers and be able to learn what they like and dislike and their ever-changing patterns of consumption.

Market research provides market data and market information that entrepreneurs need to reduce risks, reduce potential problems and problems in your current business, get to know new market opportunities, gain information, and facts about the business to make decisions and action plans more real. Conduct Market Research In your daily routine, be aware or impossible of you

often or have been involved in market research. For example, before you buy an item, you go to a store/marketplace to compare the items you want to buy at the cheapest price, the best quality, and the great model.

As an entrepreneur, you may check the returned item, to find out why the goods are returned, customers. You may ask old customers why they stopped buying from your store. You may study ads from newspapers, magazines or television, to find out how they sell products. 

From the above activities, you have actually done research. Market research only makes the process of activity more systematic. Through market research, you can create a framework that allows you to assess the meaning of information about the market objectively.

Steps in conducting market research are as follows:

  1. Formulate the problem
  2. Do a preliminary research
  3. Planning research
  4. Use your own resources or from outside
  5. Process and interpret data
  6. Make a conclusion or decision
  7. Apply the decision and review your decision.
1) Formulating Problems

You should be able to clearly identify common issues first, before defining specific marketing issues, formulate research questions, and define types of solutions in general. Before conducting a research, you should know what questions to ask. After formulating your main problem, try to recognize all the factors that may have caused or affected the problem.

2) Conducting Introduction Research

A preliminary study will help you to formulate your problem. You can also develop
and menses temporary solutions. Subsequent assessments may be able to identify other potential solutions. In this phase, determine whether further research is needed and whether potential outcomes are consistent with time, cost, and effort.

3) Plan Research

By the time you start planning the research, you should already have a good understanding of the problem and the influential facts that can be obtained. Related problems and facts will help you determine the techniques used to collect data including survey questionnaires, specific quantitative techniques, and market measurements. Various types of market research include statistical analysis, sales analysis, surveys, observational research, and experimental research.

4) Using Your Own Resource or From Outside

Before considering a market research, take note of the information available to you. Notes and files about customers will be helpful. Learn about sales records, receipts, complaint lists and other cumulative notes. 

This information can help in knowing where customers live and work, their consumption patterns, what they buy, how they buy, when they buy and where they buy. Maintaining a good relationship with your (market) customers will help you in determining your changing customer needs.

The cost for all this information is not great or at all cost less and can be very useful to you.
Your employees may also have valuable information about your customers' attitudes and opinions. 

Keep your employees keeping written records of customer complaints, out of stock, customer requests, and customer comments on your service. Talking to your employees about their daily relationships with customers can give you a different perspective on marketing procedures.

5) Outside Resources

Once you have obtained information from sources within your organization, you may need resources outside of your business. There are numerous publications on market research, including articles, survey publications, magazines, reports, and books, all of which are called "indirect referrals". 

Indirect referrals can be obtained from libraries, government agencies, educational institutions, booksellers, and publishers.

Information collected from indirect referrals should be helpful in organizing real market research projects. 

This project can generate direct, simple-to-use research such as giving a questionnaire to all the customers who come to your place and then summarizing the results. Sophisticated assessments can be designed and implemented by research organizations, but the costs may be high.

6) Processing and Interpreting Data

While collecting data is part of your market research activity, an effective solution to a marketing issue is determined by its data interpretation. It is important to know the meaning comes, and how it can be used to make informed decisions.

7) Making Conclusions or Decisions

Your decision is influenced by your interpretation but taking into account all the factors without your form and your opinion about the research assessment depends on you. If your feelings match the interpretation of the data, you will be more confident in your decision. If your opinion is different from the interpretation of the data, further analysis is required.

8) Implement Decisions and Review Your Decisions

The final step in carrying out a market research is to apply your decisions and review the results. Only in this way can you accurately determine the outcome of your decision. As a result of your decision, you may have to carry out the next assessment. Your assessment data can be 

used to carry out other marketing reviews. In a review of market research, you may want to inquire the following questions to yourself:
  1. What are my business goals?
  2. How does my customer look?
  3. How do my customers view my business?
  4. How do I view my competitors?
  5. How is my product strategy?
  6. How is my pricing strategy?
  7. How is my promotion strategy?
  8. Is my business location justified in order to serve my customers?

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