Welcome to an exploration of the essential realm of market research. In this post, we’re delving into the very heart of market research — its core definition, its indispensable role for various entities, its diverse applications, and the distinct groups it caters to.

Join us as we uncover the nuances of market research and its far-reaching impact on shaping successful ventures. This post will address the questions outlined below:

• What is Market Research? Why it is in high demand?
• Who needs market research?
• What is market research used for?
• What is the difference between market research in B2C and B2B

What is Market Research? Why it is in high demand?

“Market research is the systematic collection, analysis and interpretation of information
relevant to marketing decisions.” By ‘systematic’ we do not imply that market research is a scientific discipline, as we often use procedures such as observation and focus group research that are long on interpretation and short on mathematics. In this respect, market research is closer to the social sciences than those such as physics which can be more precise about the laws of nature.

Who needs market research?

Large companies worldwide have a frequent requirement for market research in their marketing planning. Managers of each territory’s internal sources to make their reports. The functional heads compile data on sales, finance and production. And whenever time allows, the boss does his/her own tour. However, the position is no way as clear as it is to the small companies because of the following factors:

• There are conflicting views from staff. 
• Cultural differences around the world blur the understanding. 
• Customers are distanced by distributors and there are few opportunities for them to express their opinion. 
• It takes an army of people weeks and months to make changes in the global company.
• The cost of a wrong decision is a fall in sales and profitability, resulting in the loss of thousands of jobs and millions of dollars off the share price.

What is market research used for?

The research should be designed to solve a business problem. This requires a framework. When the problem has been identified and a hypothesis developed, the framework can be selected. Now the questions that need to be asked will become evident. When the survey is finished, data can be dropped into the framework to provide an actionable plan. The fact that the survey links to a framework will give the client more confidence in the findings and the suggested direction for the business. The research will be grounded in an established business model. There are hundreds of business models and frameworks that help us make sense of data. To name a few popular frameworks:

• SWOT (strengths, weaknesses, opportunities, threats)
• PEST (political, economical, social and technological).
• Porter’s five forces for competitive analysis
• USP (unique selling proposition)
• 4Ps Marketing mix strategies (Product, price, place and promotion)
• AIDA (Awareness, interest, desire, and action)
• Customer Journey mapping
• Maslow’s hierarchy of needs

What is the difference between market research in B2C and B2B sectors?

Business-to-business market research is characterised by complicated decision-making units, often involving a number of people, whereas consumer research generally focuses on just a single person or the family unit. Customer markets In consumer markets, the number of potential buyers of a product is often a significant proportion of the total population running into millions.

Business to Customer market B2C

Consumer markets can be further subdivided between FMCGs (fast-moving consumer goods – food and similar frequent purchases) and other markets – media, travel and leisure, financial, consumer durables and so on. Consumer markets – FMCGs in particular – are also retail markets, and anyone marketing through retail distribution needs to know as much about what is happening in the shops as amongst final consumers.

Business to Business market B2B

Many business-to-business markets are characterized by a much smaller population to survey, often measured in hundreds or thousands rather than the consumer millions. What is more, the business-to-business markets are frequently very variable, made up of companies in different industries and with huge differences in size. Within the businesses, there are often complex groups influencing the buying decision (the decision-making unit or DMU). The obvious groups, such as procurement, place the orders but technical and production departments may set specifications and financial departments may impose budgets. In these complex business-to-business markets with smaller and more varied populations and tangled decision-making units, we need different research methods. Sample sizes are smaller in number and the researcher may be leaning as much on judgement and interpretation as on the rigour of the method.