It is very important that a marketing-orientated business understands as much as possible about its customers and the way in which competitors are already serving them. Market research is done in two ways, namely primary research and secondary research. Secondary research is to know about the basics and the understanding the markets. Primary research is done with a particular objective. Secondary researches are also done using Internet, called Internet Market Research.
Marketing research is particularly important in launching a new product. Market research is important to enter into the new markets. Market research is to know the competition in particular market. Market research is to know what customers expect and what they are. Market research is to know the demographics of the new markets. Market research is to know the changing patterns and lifestyles of customers. Market research is aimed at reducing the risk of failure. It tries to find out how the customer will react to the new product. If they are negative in their findings, then either the product is shelved, or adjustments are made.
The uses of marketing research are often to find out the answers to questions on whether the customer will buy the product and how often? What they are willing to pay? What type of customer is interested in the product? Where it should be sold? A small business would probably find large-scale primary research too expensive. Instead they often rely on asking friends and family, or customers. However, small businesses increasingly have access to the extensive amount of material available on the Internet. A small business can also use the local business organizations such as the Department of Trade and Industry, Training Enterprise Councils and Chambers of Commerce.