Market Study /The 4 Ps of Marketing / Importance of an IDEA: Understanding Market Research

Market research is the process of gathering, analysing and interpreting market information on a product or service that is being sold in that market. It also includes information on:

• Past, present and prospective customers
• Customer characteristics and spending habits
• The location and needs of the target market 
• The overall industry 
• Relevant competitors

Market research involves two types of data:

• Primary information. This is research collected by yourself or by someone hired by you. 
• Secondary information. This is research that already exists and is out there for you to find and use. 

Primary research 

Primary research can be of two types:

• Exploratory: This is open-ended and usually involves detailed, unstructured interviews. 
• Specific: This is precise and involves structured, formal interviews. Conducting specific 

Secondary research

Secondary research uses outside information. Some common secondary sources are:

• Public sources: These are usually free and have a lot of good information. Examples are government departments, business departments of public libraries etc. 
• Commercial sources: These offer valuable information but usually require a fee to be paid. Examples are research and trade associations, banks and other financial institutions etc. 
• Educational institutions: These offer a wealth of information. Examples are colleges, universities, technical institutes etc.