What Is Market Research?
What Does Market Research Mean?
Market research is used by a variety of different companies looking to understand what consumers need and want within challenging market conditions. The definition of market research relates to the methods a company uses to collect important information in order to help understand specific market conditions and consumer demographics. This allows a business to tailor their strategies to demand and adapt them to improve the products and services they provide for consumers, which in turn helps to increase profits.
Market research can involve compiling questionnaires and surveys to determine someone's lifestyle choices, or collecting results in the form of a spreadsheet. Many companies based in Ireland use market research surveys (and the organisations who provide them) in order to gain information about how to improve their products.
Various businesses may wish to question the general public and specific demographics their products are aimed at in order to ascertain the best strategies to pursue. For instance, a shampoo manufacturer may want to know what people think of their new product and ask them to test it from home. If the response is favourable, they'll be able to state that a certain percentage of people prefer the new product to a competitor's brand, whereas if the response is negative, then they may decide to change the product before they market it.
What Market Research Means for Businesses
Conducting market research is becoming increasingly important for businesses in Ireland and around the world. By researching how popular their products and services are, and what areas they can improve, businesses can become more productive and therefore increase profits.
Accurate market research can help a company gain a more significant slice of the market and successfully compete with rival firms. Gaining an insight into why a product is falling short of expectations is invaluable, as it means they can either improve their existing products and services, or go back to the drawing board and create a brand new product that has the edge over rival brands.
This helps a company to grow, bringing more jobs to an area which consequently helps towards improving the economy. By helping a business to understand its customers' needs and opinions, they can communicate in a way which balances customer satisfaction with business profitability.
What Market Research Means for Consumers
This is also good news for consumers as by contributing to market research they can ensure companies will create and sell products that are genuinely useful. Indeed, many consumers participate in market research in order to voice their opinions on survey websites such as MySurvey Ireland and Toluna.
By helping a company to research how useful their products are by voicing their opinions, a consumer can become part of the process of developing and adapting products. Not only does this give consumers an active say in what products will be sold, and how they will be marketed, they will also help to improve their quality too.
Essentially, this can be very rewarding, as consumers can not only make money in the process, they can also ensure the quality of consumer goods and services reach or remain at a decent level. Likewise, if enough consumers complain that a product or service isn't performing to the standard expected, voicing their opinions through market research will ensure a company is made aware of any issues.
How Much Money do Businesses Spend on Market Research?
As the need for informative market research is becoming essential for businesses of all types to flourish, companies are spending increasingly large amounts. Recent estimates indicate that at least €16 billion is spent worldwide each year. A lot of the money is spent on paying specialist market research companies who gather and process vast amounts of information for their clients.
This money is required for a company's research fees as well as the setting up specialist websites and software which can process and store large quantities of data. Lastly, it goes towards paying people to conduct research over the internet, by telephone or on the streets.
Why Market Research is Relevant to You
Market research is a rapidly growing area of business in Ireland, and many companies such as Irish Opinions, MySurvey Ireland and Europinions allow people to join their panels, offering a token payment for each online survey they complete - and these earnings soon add up. So if you wish to make a difference and a little money too, it could be well worth your while.