Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include helping create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level. Market research is generally either primary or secondary. In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible. Disadvantages of secondary research are that it is often not specific to your area of research and the data used can be biased and is difficult to validate. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product.
A list of questions that can be answered through market research:
1> What is happening in the market? What are the trends? Who are the competitors?
2> How do consumers talk about the products in the market?
3> Which needs are important? Are the needs being met by current products?
Subjects of market research;-
1. Identification of customers.
2. Competition on the market.
3. Size of the market.
4. demand and supply in the market
5. acceptable price level
6. past and present trends in the market
7. number of potential buyers
Market research can be made on a fixed subject or it can be done on all the subjects together. Because of the growing competition in the market now MR become necessary for the entire business firm. An organization make their future plans on the base of MR. Whenever any Organization want to go for market research they have to collect data about the above mentioned subjects. In case of service market like tourism market the organization need to collect data also on the following subjects:-
1. Types of tourists
2. types of transportation
3. stay length at the destination
4. expense capacity of the tourists
5. types of accommodation
6. FOREX facilities
7. security and safety at the destination
8. telecommunication
9. rules and regulations
10. food & beverages