Businesses who do market research are around 60% more profitable. That’s a big deal. Market research is how businesses learn what people want. It matters a lot in I.B. business studies. In this article, we will explore various methods of market research that are relevant to IB students. You will see what you can do to obtain information and make sound business decisions.
The Essential Guide to Market Research
Market research is how businesses find out things about their customers. This enables them to determine what to sell and who to sell it to. Knowing this is important for making good decisions.
What is Market Research and Why Do We Need It?
Market research means gathering knowledge about your market. The aim is to discover opportunities, know customers better, and understand competitors. It is how to mitigate risk when bringing innovation.
THE DIFFERENCE BETWEEN PRIMARY AND SECONDARY RESEARCH
Two categories of research you may have read about are primary and secondary research. Primary research — this is when you gather fresh data on your own. Think surveys or interviews. Secondary research depends on existing data. This could be articles or online stories. Primary research is more expensive but can be customized. Secondary research is less expensive but may not be as tailored.
Step by Step Guide to the Market Research Process
Market research has steps. First, define the problem. Next, design your research. Then, collect data. After that, analyze the data. Last, report what you found. It works if you follow these steps!
Methods of Primary Market Research
Primary market research refers to the collection of data directly. Here are some key methods.
Surveys and Questionnaires: Creating an Effective Plan
Questionnaires are a common method of data collection. You may conduct your research via online surveys, telephone surveys, or even in-person surveys. So, questionnaires must have many types of questions. Open-ended questions allow people to explain their responses. Closed-ended questions have predetermined options. However, when you get a set of people who respond to a Likert scale, you’re measuring how much they agree on something.
Interviews: Collecting Deep Narratives
It covers interviews that allow you to obtain information in detail. Structured interviews are based on a predetermined set of questions. Semi-structured interviews have both a guide but also more flexibility. Unstructured interviews resemble a conversation more than anything. Deep interviews can better understand why people do what they do.
Group Dynamics: Are You Fit for the Challenge?
Focus groups consist of small groups of individuals. A moderator facilitates conversation. This reveals what people think and feel. Focus groups can expose trends or concerns and can be very informative.
Observation: Insights Into Consumer Behavior
Observation refers to looking to see what people do. Participant observation means you get involved; non-participant observation means you observe from a distance. Observation can demonstrate how people behave in real-life situations.
Methods for Secondary Market Research
Secondary market research, as the name suggests, utilizes already existing data. This can save time and money.
Internal Data: Using What You Already Have
There is a lot of internal data for businesses. Sales data tell you what’s selling. A customer database stores customer information. Financial records show how the company is performing. This data may be leveraged to identify trends and issues.
External Data: Using Publicly Available Information
The external data are available for anyone. Statistics are available from government publications. Market insights come from industry reports. Academic study gives research insight. The data are sold by market research companies.
A Comprehensive Guide to Online Databases and Resources
There are numerous online tools available to assist with market research. Statista provides figures concerning various markets. MintelOffer Working with Mintel Report. But these resources can help you cut down on time and effort.
Quantitative vs Qualitative Research
There are two primary approaches to research — quantitative and qualitative.
Quantitative Research: Data and Statistics
Quantitative research includes numbers and statistics. It’s about measuring things. Closed questions surveys are quantitative surveys. You are expected to go through the data and identify patterns. This makes it easier to understand which way the market is trending.
Qualitative Research: Exploring Insights and Understanding
Qualitative research is all about feelings and opinions. It also covers interviews and focus groups. It provides rich context and detail. You can figure out what drives people.
The Method Selected (and Why): A Hidden Comparison
Numbers are what quantitative research provides you. Qualitative research provides stories for you. The best approach is driven by what you are hoping to learn. Both should be used for a full understanding of the situation.
Written by Ruven and Yocatech | Ruven & Yocatech
The ethics of market research should be a priority at all times.
We Will Train on Data Until October 2023.
It is really important to protect privacy. You have to protect consumer data. Comply with the privacy laws and policies.
Informed Consent: Voluntary Participation
You should obtain permission before you collect data. Let people know what they’re signing up for. This is known as informed consent.
Bias and Objectivity: Not Letting Results Become Manipulated
Be honest in your research. Do not adjust outcomes to match your desired outcome. That would be unethical.
IB BoS: Applying Market Research in IB Business Scenarios
Market research matters in the real world. Here are some examples.
Case Study 1: New Product Market Entry Strategy
Gas price in a certain country tends to change based on the CRUDE oil price. They do market research to better understand their target market. They discover what customers want and need. This enables them to chart their way through market entry successfully.
Service: Target Market Identification
There is a new service offered by a company. 04: Market Research: These really help them find their target market. They find out who is more likely to use their service. This enables them to concentrate their marketing strategy.
Effective Market Research Tools for IB Students
Plan your research carefully. Gather data from a variety of sources. Analyze your data thoroughly. Report your findings clearly.
Conclusion
Business success relies on many key skills, and market research is one of them. We talked a lot about different techniques, ethical considerations, and real-world examples. Now you have this new knowledge, you can apply it to your studies in the IB.
