It is common to hear of companies conducting market research every once in a while and the concept of it is sometimes lost to those who do not understand why they do it. This is an important marketing tool that is used to tell a lot about a market without having to venture into business blindly. Some information that can be obtained through market research includes market size and the potential in that market to accommodate a certain service or product. There are many ways that market research can be conducted although there are three major categories under which it is done:
1. The use of trade shows as a market research tool is a good way to determine who is in the market and who is not at that particular time. This is a good way for businesses to know their competition both new and old and those that have fallen along the wayside. If you are invited to exhibit in a very large trade show, then it means that the market for that particular item is very big and everyone has a chance of creating business for themselves. The exhibit booths that are present in a fair give the impression of the level of maturity in that particular market and this is a good indicator of whether the market has a bright future or not.
2. The use of trade journals and magazines to gather information on markets is a great market research tool. The kind of information inside these publications is a good indicator of how well the market is doing. For instance, if a journal carries a lot of job postings, then it shows that the market is hungry for professionals in that field and people have opportunities to grow within it. On the other hand, advertisements in magazines are an indicator of the potential of a market because good advertisements cost a lot of money to produce.
3. When you engage customers on a personal level, you get to see their preferences from their own perspective and assessing how well the market is doing and if it is achievable. Many customers will be excited about sharing their views on what information they have on a certain market. The answers they give and the insight they provide is helpful in shedding light on the forces that control a market. The needs of a given market are the forces that pull the market behind.