How to Market Research Conducted?
Market research is the method employed to critically analyze target markets and their customers. It provides a strategic analysis based on the market data obtained for a sample of stakeholders for the concerned market. Participants of this study are inclusive of the entire spectrum of end-users for a concerned sector. The customer base can be broadly classified into current customers, potential customers, prospective consumers, missed opportunities (consumers who opted for a market substitute for the product), and marketers.
Organizations make use of this study to gain further perspective about their existing consumer base. Moreover, these reports help companies with the identification of grey areas in terms of their product sales. A better purview concerning the consumer needs in a product or service can be obtained with the help of a study. Market Research also helps companies broaden their current customer potential by identifying areas for expansion. Business to Business (B2B) Market Analysis allows companies to obtain useful insights with regards to economic changes, competition, emerging industry dynamics, new prospects, and consumer insights.
Market Research is dependent on the data obtained through both primary and secondary research. The strategic analysis of this data can be performed in two ways, i.e. qualitative and quantitative methods.
Figure 1: Overall Market Research Process
As mentioned earlier, market research can be classified into two sections namely primary and secondary research. Primary research involves the direct collection of data. Researchers interact directly with customers to understand the market from their perspective. Feedback based on company services and other market aspects is also analyzed through this method. Secondary research on the other hand depends upon indirect sources of information. These information outlets help the analyst with understanding the current market scenario based on the shifting dynamics.
How to understand Market Trends and Market Dynamics
The critical analysis for a market with respect to its trends can be provided using both qualitative and quantitative analysis. Qualitative research provides unparalleled depth concerning the information gained. It allows the analyst to ask open-ended questions that may help explore new inquiry lines, as opportunities emerge within the concerned market. These open-ended questions are based on the gap of information that is available in secondary data and the intended level of information requirement of the market analyst or the researcher. The data gathering step for a qualitative analysis can take place through different forms of media, including electronic polls, email, and mobile surveys, telephonic calls, personal interviews, etc. The analyst is expected to understand the key trends and the market dynamics at the end of the interview phase.
Quantitative research on the other hand is the process of collecting and analyzing numerical data. The data obtained can be used to find patterns and averages, make predictions, test causal relationships, and generalize results to wider populations.
How to do Market Sizing and Market Forecast
Market sizing helps estimate how much revenue that specific market would generate in the next few years. It also aids decision-makers and top management staff with performing a strategic analysis before making an investment in an upcoming business. The approach to recruitment can also be optimized by companies since they could manage their fund flow better with the help of this section. Market sizing essentially begins with a quantitative estimate for the market defined and its market penetration rate. The market volume helps identify the potential size of the market. The market size obtained goes through scenario analysis that helps factor in the risks of change. Over time, the accuracy of the initial assumption is monitored to check for changes.
The market forecast is the most challenging task in the stages of market report preparation. It requires at least 5 years of deep industry understanding to ensure that basic assumptions are allocated correctly. Alternatively, the best website which can be referred for a readymade market forecast across 600+ markets is Global Market Database.
In the recent past, the end-users and analysts of market research reports are shifting towards tools like Global Market Database for B2B market inputs. The key advantage is that the market forecast is readily available, and these are used by both market analysts and OEMs for their planning purposes. The data in Global Market Database is also updated periodically, organically and there is an additional update in case of COVID like situation. The registration is free and helps analysts, OEMs, and other users like Investment Bankers.
What should be covered in the Company Profiles or Competitor Analysis Section?
The company profiles section should typically contain the latest company news, financial, product and merger & acquisition news and SWOT analysis.
