Thursday, November 17, 2011

Market Research: The Art of Knowing What the Consumer Wants..


One of the main goals of a good market research campaign is to devise an optimal strategy for any given product. In general, the idea is to have the greatest possible effect on potential consumers through the expenditure of as little an amount of money as possible.
Market research often involves the use of complex models to predict how different variables might respond to a marketing campaign. Some of these variables are: the present state of the market, the behaviour of consumers, and the presence of competitors.

First of all, research seeks to get some sense of present market trends. For example, you could ask: "What's the relationship between supply and demand at the moment for the market as a whole, and for the niche of my product in particular?" Market forces are immensely powerful, and part of the purpose of good market research is to identify the nature and configuration of these forces. The forces are generally too vast for any single individual to control, but with the aid of research, you can ride the waves, so to speak, in the most effective way possible.
Once this context is established, you can use market research to investigate the behavior patterns of your potential consumers. For example, this might involve gathering knowledge through methods such as risk analysis, choice modeling, and game theory. (This may sound daunting to the aspiring manufacturing company, but please remember that there are people who specialize in this sort of research.) While the actions of any one shopper are generally unpredictable, it's possible to discern consumer patterns at the broad level of the market. Data from market research will enable you to present your product attractively, so that the consumers' trends will result in magnificent success for your product.
Good research will also need to take into account the fact that your product will have competitors when it reaches the market. It's one thing to analyze the market, but it's more difficult to think about the way your product will change the market itself when it enters the market. If your product is new to the scene, then your research may focus on the probability that consumers will switch away from established brands in favor of your product. On the other hand, if your product is established, then perhaps your market research could focus on how to maintain consumer loyalty and fend off the appeal of newcomers.
In short, there are all sorts of variables to consider when it comes to the interaction between your product and the other players on the market. An effective market research campaign could prove key for gathering all the information you'll need to make your product a success on the market.

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