Market Research

Market research examines the operating environment of a corporation. It includes all of the processes and operations that deal with the systematic acquisition of knowledge, including searching for, collecting, analyzing, and interpreting information. This knowledge supports the marketing activities of corporations.

Market research is generally divided into four categories: market research, consumer research, product research, and media research. It can be performed either by using secondary sources such as data and information that has been collected beforehand or through primary research that refers to collecting data on a specific topic directly in the market. When [Page 1084]conducting market research, researchers apply qualitative and quantitative research methods.

Market research aims at investigating the conditions in which a corporation operates. The acquisition of market information has two main goals. First, market information can help to solve problems that the company is facing and allows managers within the corporations to make better decisions. If sales of a certain product decrease, market research can present answers as to why consumers do not buy the product anymore or why they prefer the product of a rival. Market research can help to locate and identify corporate problems and to develop solutions for them.

Second, market research helps to identify future trends and challenges for corporations. Firms are facing increasing competition from an ever-growing number of competitors. In order to bring successful and profitable product ideas to market as fast as possible, the corporation needs to identify any changes or trends in customer needs so that they can be integrated into marketing planning. Thus the company needs information about market potential, market share, and trends in consumer behavior.

Stages of Market Research

Market research is performed in several stages. At the beginning of the market research process, the problem or challenge the corporation faces has to be defined in order to be solved. Information to accomplish this can be found in the market. The company can either carry out the research activities itself or hire a market research agency to do so. In some cases, information on the topic of interest already exists within the company or in official organizations, such as ministries, research institutions, or market research agencies. The next step, namely the analysis and interpretation of the data and information acquired, is the most important one. Finally, the acquired data is integrated into the marketing activities of the corporation.

The acquired information is communicated via marketing-information systems within the company. A marketing-information system facilitates the organized and regular dissemination of information to all managers within an organization to support their decision-making processes. At the end of the market research process, collected information will influence the marketing activities of corporations.

Areas of Market Research

Market information has various forms. They include information about the researchers own company, its market position, its development, and its growth prognosis as well as competitive strategies and information on rival corporations. As its name suggests, market research investigates the operating market of a corporation and the changes that can be observed in these markets. Another relevant area is the research of consumers, their attitudes, needs, and behavior. Market research can further investigate products and their acceptance and usability. Product research aims at avoiding problems in product usage and acceptance by applying product, color, or flavor tests. Market research is also conducted to investigate the effectiveness of media used in marketing activities. Questions investigated in this field concern the image of communication channels, how many and which consumers they reach, and the efficiency in communicating the corporations advertising messages.

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