Market is a location where trading is carried out by people. It follows the theory of supply and demand. Marketing research includes a form of applied sociological study which concentrates on understanding the behaviors, whims and preferences, mostly current and future, of consumers in a market-based economy.
What would one do before introduction a new company or a new product or before buying shares in the market, an intelligent person is said to be the one who does market research. This gives him rough idea of what are the problems he is to face in future and can think over it in advance. Market research is necessary in for any sort of business. It helps to be familiar with the market conditions, desire of consumers and rules laid out by Government. Also you know number of competitors and their hold in a market, economic trends, technological advances, and numerous other factors that make up the business environment.
At times the term refers predominantly to the financial analysis of companies, industries, or sectors. Financial analysts generally carry out the research and provide the results to investment advisors and potential investors.
Some commonly used marketing research terms
Following terms are commonly used in market research:
The method of converting indistinct mental pictures into definable concepts is called Conceptualization. The method of converting concepts into precise observable behaviors that a researcher can measure is termed as Operationalization. Precision means the exactness of any given measure is. A statistical technique of combining data from multiple studies or from several types of studies is called Meta-analysis or also called the Schmidt-Hunter technique.
The surety, that a given operationalized construct will produce the same results if re-measured is known as reliability. The amount to which a measure provides data that captures the meaning of the operationalized construct as defined in the study is called as validity. The sales method in which sales people play to conduct marketing research, but with the real purpose of obtaining buyer motivation and buyer decision-making information to be used in a subsequent sales call is called Sugging.
Frugging include the practice of soliciting funds under the pretense of being a research organization.
Types of marketing research
There are many forms in which marketing research can be carried out:
1) Test marketing: Before introduction a product on large scale some samples are introduced in the market and the reply of consumers is used to check about its acceptance.
2) Concept testing: This is done to see if consumer knows the necessity of another good option and if the new thing set up eradicates the problems with previous one.
3) Mystery shopping: In this an member of staff becomes a salesperson temporarily and indicates they are shopping for the product they sell. They then record the entire experience. This technique is frequently used for quality control or for researching competitor’s products.
4) Store audits: This is carried to discover if retail stores provide adequate service.
5) Demand estimation: The estimated level of demand for the product is searched out.
6) Sales forecasting: Here it is found the predictable level of sales given the level of demand.
7) Customer satisfaction studies: In this interviews that decide a customer's level of satisfaction with the quality of the transaction is done.
8) Distribution channel audits: Here distributor’s and retailer’s approach toward a product, brand, or company is assessed.
9) Price elasticity testing: sensitiveness of consumers to price changes is observed.
10) Segmentation research: The demographic, psychographic, and behavioral features of potential buyers are found.
11) Consumer decision process research: Things that stimulate people to buy and what decision-making process they use is searched.
12) Positioning research: The way the manufactured goods stand against its brand relative competitor’s stands is seen over here.
13) Brand name testing: Effect made by the brand names on consumers.
14) Brand equity research: The motive why people go after this good rather than other. Strong points in the products are set up.
Market research carried while buying shares :< /b>
A share is nothing but a divided-up unit of the value of a company. Following things need to be explored before a share is to be purchased:
a) The risks that are faced while investing in the Securities Market.
b) Rights of a shareholder.
c) Securities given with corresponding recognized Stock Exchange(s).
d) If you make a decision to operate through an exchange, the services you will have to gain of a security and exchange board registered broker/sub-broker of that particular country.
e) Legal formalities requisite to complete the process.
Here are some advices which are done after market research :< / b>
Timing is perhaps the significant factor in playing the market successfully. Market conditions are at all times fluctuating so be brave to face it. There is a proverb "buy in gloom time, sell in boom time". Buy the share at low down price which have bright chance to improve later. Be ready to quit the market altogether sometimes. Your broker will hardly ever tell you. When the market goes into a tailspin, even good stocks are probable to fall.
Just as preparation previous to exams proves helpful in getting good marks, the market research before launching heavy investments in market proves to be fruitful. Market research helps to generate the confidence and improves visualization about the current and future market conditions.
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