Speaker 1: Hello everyone, welcome to Business School 101. Market research is the process of systematically gathering, analyzing, and interpreting data and information about a market, including its consumers, competitors, industry trends, and various factors that impact it. The primary purpose of market research is to gain insights and knowledge that help organizations make informed decisions, develop effective strategies, and identify opportunities or challenges within a specific market or industry. So what are the primary functions of market research? How many steps are involved in the process, and can we find real-world examples to illustrate these concepts? In this video, I will discuss these questions with you. Section 1. Key Functions Market research serves several essential functions. Number 1. Understanding Consumers Market research helps organizations understand their target audience's needs, preferences, behaviors, and demographics. This understanding allows companies to tailor their products, services, and marketing efforts to better meet consumer demands. Number 2. Assessing Market Viability Organizations use market research to assess whether there is a demand for their products or services in a particular market. It helps identify potential customer segments and market niches. Number 3. Competitor Analysis Market research provides insights into competitors' strengths and weaknesses, market share, strategies, and customer perceptions. This information helps organizations develop competitive strategies. Number 4. Market Trends It helps businesses stay informed about industry trends, emerging technologies, and changing consumer behaviors. This knowledge allows organizations to adapt and innovate effectively. Number 5. Risk Mitigation Market research can uncover potential risks or obstacles that an organization may face when entering or operating in a market. This information enables businesses to develop contingency plans. Number 6. Product Development Organizations use research to gather feedback on new product ideas, test prototypes, and refine their offerings based on consumer input. Number 7. Marketing and Advertising Market research informs marketing and advertising campaigns by helping businesses identify the most effective messaging, channels, and timing for reaching their target audience. Section 2. The Process Generally, there are five steps included in the process of market research. Step 1. Locating and Defining Issues or Problems The first critical step in the marketing research process is the identification and definition of the issues or problems that need investigation. This step sets the stage for the entire research endeavor. It involves precisely pinpointing the challenges or opportunities your organization faces and establishing clear research objectives to address them. Step 2. Designing the Research Project This phase involves meticulous planning of how data will be collected to address the identified challenges or opportunities. You'll determine the research approach, select appropriate data collection methods, define your sampling strategy, and create structured questionnaires or interview guides if necessary. Step 3. Collecting Data The data collection phase involves putting your plan into action, gathering information from various sources, such as consumers, competitors, or industry reports. Whether through surveys, interviews, observations, or secondary data analysis, collecting data should adhere to the methods and tools outlined in your research project plan. Step 4. Interpreting Research Findings This step involves analyzing the gathered information to draw meaningful conclusions. Data analysis techniques, such as statistical analysis, content analysis, or thematic coding, are applied to make sense of the data. During this phase, patterns, trends, and relationships within the data are identified, and if applicable, hypotheses are tested to validate or refute assumptions. Step 5. Reporting Research Findings After analysis and interpretation, the results are compiled into a comprehensive report or presentation. This report includes visual aids, such as charts and graphs, to make the data more accessible and understandable for stakeholders. It also provides actionable recommendations based on the research outcomes, ensuring that the significance of the findings is communicated clearly, and that informed decision-making can take place within the organization. Section 3. Example from Coca-Cola Let's illustrate each of the five steps of the marketing research process using Coca-Cola as an example. Step 1. Locating and Defining Issues or Problems Coca-Cola, as a global beverage giant, identified the need to continually innovate and adapt to changing consumer preferences and health trends. They realized that remaining at the forefront of the beverage industry required a deep understanding of their consumers' evolving needs. Step 2. Designing the Research Project After defining their research problem, Coca-Cola chose a mixed-methods approach, combining qualitative and quantitative research methods. They decided to conduct consumer surveys, taste tests, and market analysis. Their sampling strategy included selecting a representative sample of consumers across various demographics. Step 3. Collecting Data With their research project plan in place, Coca-Cola implemented data collection. They conducted consumer surveys both online and offline, gathered taste test results from selected markets, and analyzed industry reports and competitor data. They maintained quality control by ensuring consistent survey administration and taste test protocols. Step 4. Interpreting Research Findings Post-data collection, Coca-Cola used statistical analysis to uncover emerging consumer trends and preferences. The interpretation phase revealed that health-conscious choices and preferences for specific flavors were on the rise. They also identified a growing interest in non-carbonated and healthier beverage options. Step 5. Reporting Research Findings Finally, Coca-Cola compiled their research findings into a comprehensive report. They used visual aids like charts and graphs to present their data effectively. Based on their findings, Coca-Cola decided to introduce new beverage products, including Dasani, Honest Tea, Minute Maid, and Vitamin Water, to cater to health-conscious consumers and diversify their product portfolio. Section 4. Summary Market research plays a pivotal role in modern business, serving functions like understanding consumer behavior, assessing market viability, and conducting competitor analysis. The process typically involves five steps. Identifying issues or problems, designing the research project, collecting data, interpreting findings, and reporting results. Its significance lies in its capacity to provide actionable insights, mitigate risks, and inform strategic decisions, enabling organizations to adapt to evolving markets, meet consumer needs, and seize opportunities, ultimately fostering success and competitiveness in the dynamic business landscape. Alright, that's all for today's topic. If you have any questions regarding this video, please leave your thoughts in a comment below. I hope you guys have enjoyed this video, and if you did, make sure you give it a thumbs up and subscribe to my channel. Thanks for watching, and I will see you next time.