What is Market Research?
What Is Market Research? In the business world, it’s important to remember that there are many kinds of research. There is, for example, basic research, which is research for developing new concepts by which to produce new products for the market.
Another common type of research is applied research, which is typically used to either create new products, or develop newer (and cheaper) processes for creating such products. Other common types of research include product research, process research and employee engagement research.
However, as important as these types of research may be, none of them are as popular or as well known as market research, and this is because unlike other forms of research, market research deals with the market, the customer and the audience of a particular company.
This is an important distinction because unlike other forms of corporate research, market research requires a large population sample, and more importantly, it deals with very general variables and trends.
This is what makes market research processes more significant than most other forms of research, which is why they often get a lot of attention from researchers and business owners.
To illustrate the importance of this type of research, let’s say for a moment that you have a business that you wish to develop. In order to effectively do this, you will need the following information:
– The total size of your market
– How much money potential customers are willing to spend
– What kind of quality they expect from your product
– The number of competitors you have to face in your market
– The price range used by your competitors
– The long term value value of your market
Market research can answer these kinds of questions and much more. So if you want to develop your own online company then you better get used to the idea of carrying out some market research of your own.
The Importance of Market Research
Market research is important for several important reasons, and here are some of them:
– They can tell you which niche of your market is most profitable for your business.
– They can help you to make business decisions (e.g. Charge a high price or a low price for your products)
– They can help you anticipate the decisions of your competitors
– They can help you understand the trends which affect your business.
– They can help you develop better products and services
– They can help make your business more competitive
In addition to these concerns, it’s also worth mentioning that market research will help you understand your customers a bit more. They can tell you how they behave not only on the internet, but also their buying patterns and time preference.
More importantly, however, market research will play an important role in your SEO campaign, which is why you will need to take it seriously if you want to optimize your online business for maximum results.
How Can You Use Marketing Research to Your Advantage?
The important thing to remember about marketing research in relations to internet marketing and home based income is that it can help you find your niche. Having a niche is important because it will allow you to more effectively invest your time and effort, while at the same time, minimizing your expenses. In other words, market research can tell you which niche is most appropriate for your interests.
In the context of online income and internet marketing, market research is usually synonymous with keyword research, social media analysis, keyword/website traffic analysis and website development. The more you know about these kinds of factors, the more effective your online business will be at acquiring and keeping market shares.
In order to illustrate this, let’s say that you want to establish an e-commerce site which specializes in selling electric fences in Dallas, Texas. Now, let’s say for a moment that the total online market for electric fences in Dallas is around $100,000. Unfortunately, there’s already a monopolistic company in Dallas that distributes electric fences.
However, you soon find out that this monopolistic company is unwilling to charge a low price for its products. Coincidentally, about 10% of the Dallas market is also interested in “cheap electric fences” and are willing to buy them from any company that is prepared to give them a better offer.
You learned this by analyzing the keywords used by Dallas residents who are searching for electric fences. In other words, you will be able to get 10% of the electric fence market in Dallas if you are willing to sell products that are substantially cheaper than those offered by the incumbent company.
This is basically how market research works, and it works the same way regardless of which market you wish to enter. So if you want to be a successful online entrepreneur then carry out your market research carefully.