Definition and classification of market research

Market research (Market Research) is an activity that supports business decision-making by collecting, analyzing and interpreting market-related information. The purpose of market research is to understand the current situation and changes in the market, discover market needs and problems, predict market development and trends, assess market opportunities and risks, formulate market strategies and plans, and improve market efficiency and effectiveness.

Market research can be classified according to different dimensions, common classification methods are:

According to the source of information, market research can be divided into first-hand research (Primary Research) and second-hand research (Secondary Research). First-hand research refers to research conducted by collecting information directly from market participants (e. g. consumers, competitors, channel providers, etc.), commonly used methods include questionnaires, interviews, observation methods, and experimental methods. Second-hand research refers to the use of existing market information resources (such as government statistics, industry reports, news media, network data, etc.) to conduct research, commonly used methods are literature retrieval, data mining, intelligence analysis and so on.

According to the nature of information, market research can be divided into qualitative research (Qualitative Research) and quantitative research (Quantitative Research). Qualitative research refers to the collection and analysis of non-numerical market information to reveal the deep-seated psychological characteristics of market participants, such as motives, attitudes, feelings, thoughts and behaviors. Quantitative research refers to the collection and analysis of numerical market information to describe and measure the characteristics of market participants, behavior, opinions and satisfaction and other table-level statistical characteristics of the research, commonly used methods are sampling survey, experimental design, mathematical models and so on.

According to the use of information, market research can be divided into exploratory research (Exploratory Research), descriptive research (Descriptive Research) and causal research (Causal Research). Exploratory research refers to the collection and analysis of preliminary market information to determine the problems and assumptions of market research, and to provide direction and basis for subsequent research, commonly used methods include literature review, case analysis, expert interviews and so on. Descriptive research refers to the research that provides the basis for market judgment and decision-making by collecting and analyzing systematic market information to describe and explain market phenomena and characteristics, and the commonly used methods are cross-table analysis, correlation analysis, regression analysis and so on. Causal research refers to the research that provides the basis for market prediction and control by collecting and analyzing experimental market information to test and verify the causal relationship of the market, and the commonly used methods are experimental design, variance analysis, hypothesis testing and so on.

The Function and Value of Market Research

Market research as an information service activity, its function and value is mainly reflected in the following aspects:

Market research can help enterprises understand the demand and supply of the market, so as to determine the positioning and differentiation of products, improve the competitiveness of products and market share. For example, Shangpu Consulting Company provides market research services for a new energy automobile enterprise. Through the analysis of consumer demand, competitor situation and channel distribution in the target market, it helps the enterprise to determine the core advantages, target market segments and marketing strategies of its products, so as to stand out in the fierce market competition.

Market research can help enterprises understand the changes and trends of the market, so as to grasp the opportunities and risks of the market, and formulate reasonable development strategies and plans. For example, Shangpu Consulting Company provided market research services for a medical device company. Through the analysis of the policy, technology, market, and competition of the medical device industry at home and abroad, it helped the company identify its development in different market segments. Potential and competitive advantage, thus formulating long-term strategic planning and short-term business plans.

Market research can help companies understand the feedback and evaluation of the market, so as to optimize product design and improvement, improve product quality and satisfaction. For example, Shangpu Consulting provided market research services for an online education company. Through the analysis of user experience, user satisfaction, and user loyalty in the target market, it helped the company discover the advantages and disadvantages of its products. Improve and optimize the functions, interfaces, and content of its products.

Market research can help companies understand the impact and effectiveness of the market, so as to assess the performance and value of products, improve product revenue and profits. For example, Shangpu Consulting provided market research services for a financial technology company. Through the analysis of user behavior, user conversion, and user retention in the target market, it helped the company measure the market impact and economic effects of its products. It provides a basis for the pricing, promotion, and expansion of its products.

Market research industry demand drivers and ways to meet

The industry demand for market research refers to the supply and demand of market research services, including market size, market structure, market trends, market opportunities and market challenges. The industry demand for market research is influenced by a number of factors, the most important of which are:

The complexity and uncertainty of the market environment. With the acceleration of globalization, digitization, and intelligence, the market environment has become more and more complex and uncertain, and the needs and behaviors of market participants have become more and more diverse and unpredictable. This requires companies to continuously collect and analyze market information to adapt to market changes and challenges, and to improve market sensitivity and adaptability. Therefore, the demand and quality of market research are constantly improving, and the industry demand for market research is showing a trend of continuous growth.

The promotion and innovation of enterprise competitiveness. In the fierce market competition, if enterprises want to maintain or enhance their competitiveness, they must constantly innovate and optimize their products, services, processes, models and so on. The premise of innovation and optimization is an in-depth understanding and insight into the market to discover market opportunities and problems, find market advantages and differences, and meet market needs and expectations. Therefore, the types and levels of demand for market research are constantly improving, and the industry demand for market research is characterized by diversification and high-end.

Development and application of information technology. The development and application of information technology provides new tools and platforms for market research, making the process and methods of market research more convenient and efficient. For example, the popularity of the Internet, mobile devices, social media and other technologies makes it easier for market research to obtain and disseminate market information and expand the coverage and influence of market research. For example, the application of big data, artificial intelligence, cloud computing and other technologies enables market research to process and analyze market information faster and improve the accuracy and effectiveness of market research. Therefore, the demand scope and level of market research are constantly improving, and the industry demand for market research shows a trend of intelligence and networking.

Market research industry needs to meet the main ways are the following:

Internal satisfaction of market research. Internal satisfaction of market research refers to the way in which an enterprise conducts independent market research activities through its own market research department or team to meet its own market information needs. The advantage of internal satisfaction of market research is that it can better protect the business secrets of the enterprise, adjust the content and methods of market research more flexibly, and give more direct feedback on the results and suggestions of market research. The disadvantage of internal satisfaction of market research is that it requires more human, material and financial resources, may lack professional market research personnel and technology, and may be affected by the internal bias and limitations of the enterprise.

External satisfaction of market research. External satisfaction of market research refers to the way in which an enterprise conducts entrusted market research activities by entrusting professional market research institutions or consulting firms to meet its own market information needs. The advantage of external satisfaction of market research is that it can save the human, material and financial resources of the enterprise, and can use professional market research talents and technology to obtain more objective and comprehensive market information and analysis. The disadvantage of external satisfaction of market research is the need to pay higher market research fees, there may be conflicts of interest or quality problems of market research institutions or consulting firms, which may lead to the disclosure of trade secrets or loss of competitive advantage.

Collaborative satisfaction of market research. Collaborative satisfaction of market research refers to the way in which enterprises cooperate with other enterprises or organizations in market research activities to meet their own market information needs. The advantage of collaborative satisfaction of market research is that the resources and results of market research can be shared, the vision and scope of market research can be expanded, and the influence and value of market research can be enhanced. The disadvantage of collaborative satisfaction of market research is the need to coordinate the objectives and methods of market research, and there may be problems with the distribution of benefits or attribution of responsibility for market research, which may cause competition or conflict in market research.

Market research industry development prospects and recommendations

Market research as an important information service activities, the industry development prospects are broad. According to the International Association for Market Research (ESOMAR), the market size of global market research reached $81.2 billion billion in 2019, up 6.4 percent year-on-year, with the Asia-Pacific region reaching $23.1 billion billion, up 9.8 percent year-on-year, ranking second in the world. It is expected that in the next few years, with the increase of the complexity and uncertainty of the market environment, the improvement of enterprise competitiveness and the increase of innovation demand, the development and application of information technology, the industry demand for market research will continue to maintain the momentum of growth, the industry scale of market research will continue to expand, the industry structure of market research will continue to be optimized, and the industry level of market research will continue to improve.

In order to adapt to the development of market research industry, this paper puts forward the following suggestions:

For the demand side of market research, that is, enterprises, according to their own market information needs and market research ability, choose the appropriate way to meet the market research, reasonable allocation of market research resources and budget, effective use of market research results and recommendations, improve the input-output ratio of market research. At the same time, we should strengthen the cooperation with the suppliers of market research and the collaborative market research. Collaborative satisfaction of market research refers to the way in which enterprises cooperate with other enterprises or organizations in market research activities to meet their own market information needs. The advantage of collaborative satisfaction of market research is that the resources and results of market research can be shared, the vision and scope of market research can be expanded, and the influence and value of market research can be enhanced. The disadvantage of collaborative satisfaction of market research is the need to coordinate the objectives and methods of market research, and there may be problems with the distribution of benefits or attribution of responsibility for market research, which may cause competition or conflict in market research.

Market research industry development prospects and recommendations

Market research as an important information service activities, the industry development prospects are broad. According to the International Association for Market Research (ESOMAR), the market size of global market research reached $81.2 billion billion in 2019, up 6.4 percent year-on-year, with the Asia-Pacific region reaching $23.1 billion billion, up 9.8 percent year-on-year, ranking second in the world. It is expected that in the next few years, with the increase of the complexity and uncertainty of the market environment, the improvement of enterprise competitiveness and the increase of innovation demand, the development and application of information technology, the industry demand for market research will continue to maintain the momentum of growth, the industry scale of market research will continue to expand, the industry structure of market research will continue to be optimized, and the industry level of market research will continue to improve.

In order to adapt to the development of market research industry, this paper puts forward the following suggestions:

For the demand side of market research, that is, enterprises, according to their own market information needs and market research ability, choose the appropriate way to meet the market research, reasonable allocation of market research resources and budget, effective use of market research results and recommendations, improve the input-output ratio of market research. At the same time, we should strengthen the communication and cooperation with the suppliers and collaborators of market research, establish a good cooperative relationship and trust mechanism of market research, and ensure the quality and effect of market research.

For the supply side of market research, that is, market research institutions or consulting companies, should improve their professional level and service quality of market research according to the market demand and market competition of market research, provide more valuable and innovative market research products and services, and improve their competitiveness and market share of market research. At the same time, we should strengthen the communication and cooperation with the demanders and collaborators of market research, establish a good reputation and reputation of market research, and expand the customers and market of market research.

For the collaborators of market research, that is, other enterprises or organizations, should choose the appropriate cooperation mode of market research according to their own market information needs and market research ability, reasonably allocate the resources and responsibilities of market research, effectively share the results and benefits of market research, and improve the synergy efficiency and synergy effect of market research. At the same time, we should strengthen the communication and cooperation with the demand side and the supply side of market research, establish a good cooperation relationship and cooperation mechanism of market research, and avoid the conflict and risk of market research.