Purpose of Market Research

The purpose of market research is to help companies understand the current situation and trends of the market, recognize market opportunities and threats, assess market potential and risks, formulate market goals and strategies, monitor market changes and feedback, and improve market competitiveness and efficiency. Specifically, the purpose of market research can be divided into the following categories:

Understand the market environment: including the impact and role of the macro environment (political, economic, social, technical and other factors) and micro environment (industry, competition, channels, supply chain and other factors) on the market, and analyze the development prospects, scale, structure, characteristics and laws of the market.

Understand market demand: including consumer demand, preferences, motivation, behavior, satisfaction, etc., as well as market demand, demand structure, demand changes, demand differences, etc., analyze market demand characteristics, demand potential, demand vacancies, etc.

Understand market supply: including product supply, price, quality, function, image, innovation, etc., as well as market supply, supply structure, supply changes, supply differences, etc., analysis of market supply characteristics, supply capacity, supply advantages.

Understand market competition: including the number, scale, position, strategy, advantages and disadvantages of competitors, as well as the degree of competition in the market, competition methods, competition results, etc., analyze the competitive characteristics of the market, competitive opportunities, competitive threats, etc.

Understand the market effect: including market sales, sales, market share, profit margin, rate of return, growth rate, etc., as well as market effect evaluation, effect comparison, effect improvement, etc., analysis of market effect characteristics, effect level, effect problems, etc.

methods of market research

The method of market research refers to the technical means and procedures used by market researchers to obtain, process, analyze and present market information in order to achieve the purpose of market research. Market research methods can be classified according to different dimensions such as the source, form and scope of information. Common market research methods are as follows:

Field investigation method: refers to the market researcher personally to the market site, through observation, access, testing and other ways, directly to obtain first-hand market information. The advantages of this method are that the information is true, effective and timely, but the disadvantages are high cost, long time and small scope.

Literature method: refers to the market researcher through the collection, collation, analysis of existing market information, such as newspapers, magazines, books, reports, databases, etc., indirect access to second-hand market information methods. The advantages of this method are low cost, short time and large scope, but the disadvantage is that the information is outdated, one-sided and inaccurate.

Interview survey method: refers to the method by which market researchers ask questions to market-related personnel and obtain their answers or opinions through telephone, email, and the Internet. The advantage of this method is that the information is rich, diverse and flexible, and the disadvantage is that the information is distorted, biased and unstable.

Experimental method: refers to the market researcher through the specific conditions, the market-related factors to control, change, observation, access to causal market information methods. The advantages of this method are information science, accuracy and reliability, but the disadvantages are high cost, long time and difficult operation.

Network survey method: refers to the method by which market researchers obtain a large amount of market information by publishing, collecting and analyzing market survey questionnaires on the Internet. The advantage of this method is that the information is fast, convenient and cheap, but the disadvantage is that the quality, representativeness and security of the information are difficult to guarantee.

Resources and channels for market research

The resources and channels of market research refer to the various data, tools, platforms, institutions, etc. that market researchers can use in order to obtain market information. The selection and utilization of resources and channels for market research directly affects the efficiency and effectiveness of market research. Market research resources and channels can be classified according to different dimensions such as the attributes, sources, and types of information. Common market research resources and channels are as follows:

Official data: refers to statistical data, policy documents, planning reports, etc. on the market issued by government departments or agencies. The advantage of this kind of resources and channels is that the information is authoritative, comprehensive and systematic, while the disadvantage is that the information is updated slowly, difficult to obtain and not detailed. Common official data sources include the National Bureau of Statistics, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Commerce.

Industry data: refers to industry reports, industry analysis, industry dynamics, etc. on the market issued by industry associations or institutions. The advantages of this kind of resources and channels are information professional, targeted and cutting-edge, while the disadvantages are information charging, non-disclosure and non-uniformity. Common industry data sources include China Internet Network Information Center, iResearch Consulting, Analysys think tank, China Business Industry Research Institute, etc.

Media data: refers to news reports, commentary articles and special programs about the market released by various media platforms. The advantage of this kind of resources and channels is that the information is rich, timely and diverse, while the disadvantage is that the information is messy, inaccurate and not objective. Common media data sources are Xinhua, People's Network, CCTV, Sina, etc.

Social data: refers to user comments, ratings, sharing, forwarding, etc. about the market published by social media platforms. The advantage of this kind of resources and channels is that the information is true, feedback and interaction, while the disadvantage is that the information is fragmented, extreme and uncontrollable. Common social data sources include WeChat, Weibo, Douyin, Zhihu, etc.

Expert data: refers to the professional opinions, suggestions, forecasts, etc. on the market issued by market-related experts, scholars, consultants, analysts, etc. The advantage of this kind of resources and channels is that the information is authoritative, professional and valuable, while the disadvantage is that the information is less, expensive and difficult to access. Common expert data sources include Tsinghua University, Peking University, China Europe International Business School, and Shangpu Consulting.

Internal data: refers to the sales data, cost data, inventory data, customer data, etc. about the market generated by the enterprise itself or its partners. The advantage of such resources and channels is that the information is unique, accurate and available, while the disadvantage is that the information is limited, sensitive and confidential. Common internal data sources include the finance department, marketing department, production department, customer service department, etc.

Case of Market Research

The case of market research refers to the actual example of market researchers flexibly using a variety of resources and channels to conduct effective market research and provide professional solutions for enterprises according to different market research purposes and objects. The case of market research can help market researchers learn and learn from the experience and methods of market research, and improve the ability and level of market research. Here are a few market research cases from Champ Consulting:

Case 1: Conduct market demand research for a fast-food company to help it develop new products. Shangpu Consulting Company adopts the field investigation method and the interview investigation method to observe and record the purchasing behavior and preference of consumers, as well as the price, packaging and display of competing products by visiting retail stores, supermarkets and convenience stores in the target market. By issuing questionnaires to consumers, retailers and distributors in the target market, collect and analyze their demand, satisfaction and improvement opinions for products. According to the research results, Shangpu Consulting Company puts forward suggestions on the market positioning, target group, product characteristics and price strategy of new products for customers.

Case 2: Conduct market competition research for an automobile company to help it formulate marketing strategies. Shangpu Consulting Company adopts the literature method and the network survey method to understand and evaluate the market scale, structure, trend, opportunity and threat by collecting and sorting out the reports, analysis and dynamics of the automobile industry. Through the questionnaire of automobile consumers published and collected on the Internet, they can obtain and analyze their cognition, attitude, choice and loyalty to automobile brands. According to the research results, Shangpu Consulting Company put forward suggestions on the positioning, image, communication and promotion of automobile brands for customers.

Case 3: Conduct market effect research for an education enterprise to help it optimize service quality. Shangpu Consulting Company adopts the experimental method and social data method to control, change and observe the service content, service mode and service time of educational enterprises under specific conditions, so as to obtain and analyze the influence and effect of service on learning effect. Through collecting and analyzing user comments, grading, sharing and forwarding of educational enterprises on social media platforms, obtain and analyze users' feedback, evaluation, suggestions, etc. According to the research results, Shangpu Consulting Company has put forward suggestions for the evaluation, comparison and improvement of service quality for customers.

Conclusion

Market research is an effective way for enterprises to obtain market information, insight into market demand and grasp market opportunities, and it is also the basis for enterprises to make strategic decisions, product development, marketing strategies, competitive analysis and other important links. The quality and effectiveness of market research depends on the selection and utilization of resources and channels for market research. Market researchers should carry out reasonable planning, design, implementation, analysis and reporting according to the purpose, methods, resources and channels of market research, so as to provide professional solutions for enterprises. As a professional market research organization, Shangpu Consulting has rich market research experience and methods to provide high-quality market research services to customers from all walks of life to help customers achieve market success.