Business research is very essential for a company to survive as well as to excel in the market. For the businesses to grow in terms of revenue, market share, and brand value, a proper application of this research is required.
It is a process of gathering detailed information on all the areas of business for a research. The business research satisfies both the professional purpose as well as commercial purpose of a company.
- The research is done for the commercial purpose of using such information to maximize the sales and profit of the business.
- To make wise decisions about where the money can be spent to increase sales, profits, or market share.
- To maximise the opportunities and satisfy the business goals in a best way.
- This study helps the companies professional purpose of determining which product/service is most profitable or in demand in the market.
- This market knowledge will enable the company to select the best product/service. And also to make wise decisions to position the product/service at the right price in the market.
- The evaluations and conclusions can be done perfectly to acquire a larger market share.
By proper application business research a company can understand the strengths, weaknesses, opportunities, and threats and do a perfect SWOT analysis. The companies can avoid their product failure.
A company usually conduct this type of research to determine whether it can succeed in a new region, to understand its competitors in a new region, and select a marketing approach for a product. This research can be carried out by following the steps of qualitative research methods or quantitative research methods.
Today the customers tastes and preferences are changing at a breakneck speed. Day by day the competition is also getting tough.
Types of business research.
This type of research methods are grouped into two broad categories
Qualitative research
In Qualitative type of business research non-numerical datas (e.g., text, video, or audio) are collected and analysed to understand concepts, opinions, or experiences. It can be used to get in-depth insights into a problem. And also to generate new ideas for research.
Quantitative research
The Quantitative type of business research is an data oriented research. Here the numerical datas are collected and analyzed. The statistical, mathematical and computational techniques can be applied.
The statistical analysis can be done with the collected data. Survey type of business research method is the popular method to gather data. In these surveys, various survey questions are arrowed to a set of audiences through various medias like online polls, online surveys, questionnaires, e-mail and social media..etc. The higher rankings on search engines will enable the company to get more leads as well as increase its visibility.
Most of the major corporations nowadays use this Survey research method to gather data and use it to understand the market and make appropriate business decisions. The datas can be used
- To find patterns and averages
- To make predictions
- To test causal relationships
- To generalize results to wider populations.
There are three main types of business research. They are as below
- Exploratory research
- Descriptive research
- Causal business research
Exploratory research
It aims for clarity in a problem. The problems which are not clearly defined are targeted for better understanding. And it is mainly to have a better understanding of the existing research problem. But this research will not provide conclusive results.
Descriptive research
Descriptive type business research is an accurate and systematic research method. It provides accurate data and systematically describe a population, situation or a phenomenon. It can give the answers for what, where, when and how questions. But it cannot answer the why questions. It is more useful for the purpose of the investigation of one or more variables. It can use a wide variety of research methods.
Causal research
It is an causal-comparative research. The extent and nature of cause-and-effect relationships is identified in this type of research. And it is between two or more variables. This business research method is quite often used by the companies. Mainly to determine
- The impact of changes in products
- Features
- Service process on critical company metrics.
Examples of Causal Research
- Testing the sales potential of new prices in the market.
- Tracking the ad effectiveness of a ad campaign in the market.
- Measuring the effects of a rebrand of a product in the market.
- Monitoring the performance of employees.
Advantages of Business research
- Business research is an best tool to identify business opportunities and threats.
- This tool helps identify the problems. And this information can be used to make wise decisions. And also to tackle the issues appropriately.
- It helps to study customer’s behaviour in a better way. And this study can be used to communicate better with the customers or stakeholders.
- This research will help to minimize the risks and the uncertainties. (or the business research in advance)
- Effective planning for the investments and the expected financial outcomes can be done by using this research.
- This research can help to track business competition in the business sector.
- Business research can enable a company to make wise decisions about the total money to be spent. And also where to spend and how much to be spent.
- This research can help a company to stay updated with the market. (or up-to-date with the market) And the market trends. And it also helps to make appropriate innovations to stay ahead in the business game.
- It help the companies to avoid their product failure.
- It give the company an idea about the right time launch for a product.
- It will help the company to understand the brand value. And also to measure customer satisfaction. It is essential to continuously innovate the product to meet the changing customer demands.
- It will help the companies to study well in advance about the upcoming demand. And make supply at the right time well ahead of the competitors. A company can stay ahead of its competitors.
- Help companies to make wise decisions to ensure business success.
- Helps senior management to build an effective team.
Conclusion
- Companies conduct business research using various methods to gather information. And then evaluate the same and draw conclusions.
- This will help the companies to make wise decisions. Mainly to position the product at the right price in the market.
- And they can target to get a larger market share.