In this session, you learnt how market research helps in the decision-making process in different ways, for

example, uncovering hidden problem areas and yielding insights into customer behaviour. You also discussed
the different types of market research, the stakeholders in market research and the direction in which market
research is heading.

W Edwards Deming once said, “Without data, you’re just another person with an opinion.”

Market research helps with obtaining data in a systematic manner to make informed decisions for solving
business problems.

Here, you were introduced to the concept of market research and learnt how important hypothesis-based
testing is.

You also learnt about the different objectives of conducting market research, which in turn affect
decision-making.

After learning about the concept of market research, you learnt about the different types of market research
and what they aim to understand.

Type of Research Objectives

Segmentation This type of research aims to understand the market in detail by dividing it further.
research This helps with gaining insights into specific segments.

Production This type of research focusses on gaining insights on the types of new products that
research should be developed.

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 Pricing research This type of research seeks to understand the impact of pricing on the business and
sales of a particular product or service.

Distribution This type of research enables companies to know what types of distribution channels
research are open to them.

Promotions and This type of research helps companies decide on the best way to announce and
communications execute their promotions and communications.
research

Market potential This type of research helps companies to get a grasp of the overall category in which
research they are playing and keeps them up to date on all the latest developments and
trends.

Here, you were provided with a brief overview of the different processes involved in market research.

The five steps in the market research process are:

1. Problem definition

2. Research design formulation

3. Data collection

4. Data preparation and analysis

5. Report preparation and presentation

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Here, you learnt that business owners are not the only ones who are affected by market research. The
different stakeholders of market research include the market research agency, the client and the
respondents. For accurate market research findings, it is important for all the stakeholders to be true and
objective. Only then can the findings be unadulterated and ethical.

You also looked at some of the options available for market research. They are listed below:

1. Internal suppliers: These are internal market research teams maintained by some big firms.
2. External suppliers: These are external agencies that solely offer market research services to other
companies.
3. Other options: Firms or individuals who cannot afford to hire an agency or have an internal team can
turn to other options such as online surveys and freely available secondary data.

Last, you learnt that there are certain considerations to make before you decide to hire an agency. They are
listed below:
1. The motive behind the market research: Before approaching any market research company, you
should have a clear idea about why the market research is being conducted.
2. Methods employed by the firm: You should check the different methods employed by various market
research companies and determine which are important for your particular research.
3. Experience of the market research agency: It is important to check the experience of the market
research agency as agencies with greater experience are more likely to deliver quality work.
4. Location of the agency: A market research agency can deliver better if it is situated in the area where
you are conducting your research as it would be familiar with the territory and would also be able help
you communicate better. In case of firms located at long distances, you need to lay down the ground
rules for communication beforehand.
5. Facilities and types of equipment used: The market research agency should have appropriate facilities
and equipment to conduct any type of research.
6. Deadline-meeting capability: Appropriate and useful actions by decision makers can be taken only if
results are delivered on time.
7. Price: Pricing is an important factor in choosing an agency. You should ensure to verify everything
before agreeing on a price.

In this segment, you learnt that the future of market research, like many other fields, is in sync with the
development of artificial intelligence (AI) and its sub-disciplines, such as machine learning (ML) and natural
language processing (NPL).

Here are some ways in which AI can be used in market research:

1. To process surveys faster and in real-time: AI helps with keeping the respondents engaged, ensuring
completion of surveys. This way respondents fill surveys fast and in real-time.
2. To generate real-time insights powered by the Internet of Things (IoT): IoT doesn’t just help collect
information; it also helps with generating quicker insights. More and more companies are taking AI’s
help to analyse the vast amount of data that is being collected every day.
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 3. Pattern recognition: Big data is one of the major sources of consumer insights. AI helps market
researchers by recognising patterns in seemingly unconnected data.

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