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Marketing Research

Introduction

All the business man or entrepreneur has ideas related with business but how do they check whether this idea is good or not, feasible or not, meet demands of customer or not. The answer for all the questions or arguments is to do market research.

Various fundamental issues that are focused in market research for a start-up or small business are:

  • Market Size (measured by sales, volume etc.)
  • Market growing rate or growth potential
  • Analysis of existing competitors and their share in the market
  • Market Segmentation
  • Types of target customers

The main idea of the market research is to provide a business with that part of market where it can charge a reasonable price and can earn reasonable profits. This mostly happens when a business targets a niche market.


A niche market is smaller part of market where customers are having specific needs and wants for products and services.

Companies can offer their product and services in a mass market also. There the customer needs and demands are not too specific.

 

Comparison of niche and mass markets -


Industry

Niche Market

Mass Market

Holidays

Trekking in Nepal

Beach holiday in Ibitha

Motor cars

Porsche 911 Turbo

Fiat Uno

Eating out

Exclusive restaurant

Burger King

Chocolate

Hotel Chocolat

Cadbury's Dairy Milk

Magazines

Snowboard UK magazine

Hello! Magazine

So market research is a tool to find the types of products need to be launched in the market, what innovation in the product is required by the customers, whether customers accept the novel product or not etc. These answers are given by market research. There are various tools which are used in market research to get best results like questionnaires, observation, laboratory study etc.
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