Market Research – How Does It Work?

Posted on the 24 January 2022 by Blog Zed @Blog_ZED

Market Research is the process in which we analyze the demand and other information for products and services through research done on the potential people in the market. Different kinds of markets can be Aerospace & Defence, Retail, Food & Beverages, Health Care, Chemical & Advanced Material, ICT. Several factors are studied during the research that impacts the market in the future. It helps in determining the interest of the consumers in a particular product or service. Boston Consulting Group, Deloitte, KPMG International are some of the leading Research & Consulting companies. The research includes studying the smallest product such as needles to the largest products such as airplanes.

Types of Market Research

There are two types of market research - Primary and Secondary. Primary research refers to taking information directly from the person that may be a consumer, manufacturer, etc. through personal interviews, surveys, calling, etc. Secondary Research refers to the data already available online or in books. This data is refined and used for the research.

The purpose of the market research is to create and provide a Report to the manufacturers, suppliers, and distributors on the present and future market trends. For instance, glycerine's demand was at the highest in 2020 because of the ongoing pandemic since glycerine is used in sanitizers. According to Fortune Business Insights, the market growth of glycerine went up to 1.68 billion in 2020. These reports help the investors in the market to take their decisions as to where to invest to gain maximum profits.

Research Report

Research Report provides Historic and Future Data on a particular good or service. The Report includes information on:

  • Product analysis
  • Company profiles
  • Regional analysis of the product
  • Justification for the growth of the product
  • Value chain
  • Pricing
  • Industry risk analysis
  • Estimations for the next 10 years
  • Growth opportunities
  • Market weaknesses
  • Expected investments
  • Competitors in the market
  • Legal issues related to the product or service

Factors considered for Future Data in the Report

  1. Population: More the population, the more is the demand.
  2. Region: A new product is generally more acceptable in underdeveloping regions such as in Asian Pacific Region than in developed nations such as Latin America.
  3. Regulations such as environmental compliance or standards of manufacturing
  4. Globalisation
  5. Cost of labor: China is one of the best examples for the cheapest labor and hence the manufacturing cost is less in China.
  6. Trading regulations
  7. Manufacturing legalities
  8. Covid impacts or any other disease's impact
  9. Digitalisation

Every factor is not considered in the report, it depends on the need of the client and on the product or service.