Marketers conduct market research in order to choose one action over another. Through their research, market researchers want answers to questions such as:
- What price should we ask for the product?
- Which customer segments should we target?
- Which advertisement will consumers find most appealing?
Market research may be conducted in-house, by the company itself, or by a third-party organisation which specialises in market research. It can be accomplished through:
- Product testing, as well as
- Focus groups.
Test subjects are typically compensated with product samples and/or paid a small stipend for their time. Market research is a super important component in the research as well as development (R&D) of a new product or service.
How The Backward Market Research Method Operates
The backward research method was described first in a 1985 Harvard Business Review article by marketing professor Alan Andreasen. As opposed to the traditional market research process, the backward research method begins with a manager and the researcher spending an important amount of time talking about the manager will utilise the research findings and in determining what the closing report will look like.