Uploaded by Pradunya Dangewar

What is the importance of market research

What is the importance of market research, and why should it be conducted?
Market research is critical for both new and existing products. The benefits market research
provides is to ensure the product is properly positioned in the marketplace and targeting the
appropriate customers. It also helps marketers develop promotional campaigns, pricing strategies,
and distribution plans. Using marketing research saves money and makes the entire marketing
process more efficient and effective.”
What do you feel is the most effective way to conduct market research?
I believe the most effective way to conduct market research is to use a combination of quantitative
and qualitative research methods. The quantitative methods measure sales, regional demographics,
market statistics, and other metrics related to the product. Qualitative methodologies include focus
groups, surveys, and online research. When combined, these methods produce a comprehensive
picture of the market potential for a product, the competitive environment, and other items which
will impact the marketing decisions a company makes.”
What methods do you use to keep your market research knowledge and skills up to date?
I spend several hours a week reading relevant publications, industry blogs, and other information.
I also have frequent conversations with my peers in the industry to see what techniques they are
using and learn about their best practices.
Can you describe the difference between qualitative and quantitative market research and when
you would use each of them?
The two types of research methodology I use are qualitative and quantitative. Qualitative techniques
include surveys, focus groups, questionnaires, and direct observation. These are subjective, but
when aggregated, they provide a comprehensive picture of the market. Qualitative measures include
statistical analysis, numerical measurement of the market dynamics, demographics, and other
methodologies involving specific numbers, quantities, or percentages. They define the market
potential, competitive positioning, and other metrics used to determine specific results obtained
from marketing efforts.”
How do you go about forecasting the market demand for a new product?
Forecasting the market demand for a new product requires using both quantitative and qualitative
methodologies. The quantitative measurements include demographic information, determining the
market size, and establishing the relative positions of each competing product. Qualitative
methodologies include surveys, questionnaires, and focus groups which determine product
preferences, current product usage, and the demand for new and unique products. Based on both of
these techniques, I can forecast the demand for a new product and make recommendations for the
pricing, distribution, and promotional strategies.”
What information do you use to determine how to introduce a product into a new market?
Information I collect to determine how to introduce a product into a new market includes the
market demographics, current demand for product category, existing and potential competitors, the
current pricing strategies, and how consumers learn about new products similar to this one. I may
also be interested in complementary products and other market factors that will impact the
product’s success.”