Whatever your line of work, having a basic understanding of your particular industry is imperative. Further, in-depth market research is essential to placing yourself at the same level or above your competition. This brings us to the ultimate question: what does good market research comprise of?
The market research process involves collection, interpretation and analysis of data on a particular industry, consumer base, product and/or competitor. This process enables informed business decisions and helps in the planning out of better business strategies in order to achieve higher returns. Usually, qualitative as well as quantitative tools are used to conduct research on a particular market. The market research segment can be loosely divided into:
- Collecting consumer insights
- Studying a particular brand
- Understanding the market – market intelligence
- Understanding the competition – competitive intelligence
- Advisory function
The global market research services market stood at approximately $50 billion in 2015, and, according to analysts at Technavio, will grow moderately at a CAGR of almost 3% by 2020. In the past, the market research industry experienced a slow rate of growth, but as industries across various verticals are resorting to innovation, the industry is poised to witness steady growth in the forthcoming years.
Requirements of good market research
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Thorough understanding of the Industry
To begin with, buyers prefer market research firms that have the relevant experience as well as the knowledge of their specific industry. It is the awareness regarding a particular brand or competitive intelligence in a particular industry that gives the buyer an edge over the competitors. Thus it is essential that market research firms take these points into consideration in order to provide relevant and actionable information that helps in better strategy building and the decision making process.
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Reliable database and operational capabilities
Research is all about facts, and figures that support these facts. Buyers tend to prefer research firms that have proprietary databases or access to third-party databases both in terms of range as well as depth of coverage. Therefore, it goes without saying that good market research should incorporate a reliable database and use the best operational capabilities available.
Another major requirement of most buyers is that the data provided to them adheres to the ‘Data Protection Act, 1998’. This reduces the risk of non-compliance to the Act, as well as the chances of making inappropriate business decisions.
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Transparency in cost structure and short turnaround time (TAT)
Transparency is a very vital component to market research. This includes transparency in the sources through which the data has been collected, transparency in the analytical tools used, and transparency in the cost structure of the contract. Along with transparency, short TAT has a direct impact on strategic business decisions. Any delays in research outputs automatically results in delays in the strategic decision-making processes, which can sometimes defeat the very purpose of the project.
Want to learn more about where the market research services industry is headed?
View the 2016 Report on Global Market Research Services
