Why should market research be done?

Today’s market is complex and is characterized by rapid changes, frequent and jumpy technological improvements, increasing globalization and fluctuation of information, capital, labor, and other resources. The global recession and the recent financial sector crisis pose additional aggravating circumstances for organizations in their efforts to respond in a timely and correct manner to their environment. An adequate and quick response to new challenges is an essential task for businesses and managers.

post3aModern companies are forced to continuously collect information about their internal environment (their own strengths and weaknesses), as well as about the external environment (consumers, competitors, partners, the state and its economic policy, etc.). Information is important not only for monitoring the environment, but also for predicting developments in the environment, for creating changes that could improve the business, increase sales, and improve the competitiveness of the company.

Simply put, without quality information, there are no timely and valid business decisions.

The research goals can be different and most often include: research on the market of sales, consumer motivations, demand, competition, product, distribution, promotional mix, price and payment of this logistics. Information obtained through market research is used as a basis for planning activities, such as: creating a business plan, developing a marketing plan, etc.

Market research areas generally include:

Macro environment (demography, economic environment, raw materials-energy environment, technological-technical environment, legal-political and socio-cultural environment)

– Micro environment (enterprise, competition, suppliers, customers, the public, institutions and brokers)

The usefulness of information obtained through market research is evaluated through:

The importance of information for an individual decision to be made,

– The degree of uncertainty and risk of decisions,

– Expectations in the extent to which information reduces the risk and uncertainty of making and executing business decisions.

Market research process

post3bMarket research includes the following steps: defining the problem, informal research, preparing research (selection of survey method, preparation of research plan, measurement, scaling and questionnaire preparation), data collection (survey) data processing, data analysis, synthesis and interpretation of results, and activities.

 Data collection

Market research can be carried out on field research and desk research, using different qualitative and quantitative methods. Collected data are often divided into a group of primary and secondary data.

The data observed and recorded by the researcher for the first time in his knowledge is called the primary data. The degree of reliability and frequency is used as the basic criterion for the classification of primary data, and therefore it is necessary to distinguish between facts, opinions, and motives.

post3cSecondary data are those data that are available to the researcher before starting their work, ie, data that someone has already collected. The key questions are where and how such data can be found, what is their content, and how to use them the most rationally for their own research. Such data are often available in various statistical publications, data from chambers of commerce and professional associations, government institutions, financial organizations, etc.

Processing and analysis of collected data

After collecting primary and secondary data, the most delicate stage in the market research process – processing and data analysis – begins. The processing of collected data, their control, classification, coding, and tabulation are a necessary preparation for analysis.