Market research

Understanding market research before entering private label business

Before investing your money in production of your private label brand, it is important to do market research and find out what is the best market for you to invest in. Best way to do it is to hire an experienced market research company that will provide you with determining the viability of a new service or product through research conducted directly with potential customers. Market research will allow you to discover the target audience and get valuable feedback from consumers about their interest in the product. The purpose of market research is to look at the market associated with a particular item to find out how the audience will receive it. This can include information gathering for the purpose of market segmentation and product differentiation, which can be used to tailor advertising efforts or determine which features are seen as a priority to the consumer. 

The Development of Market Research

Formal market research started in Germany back in the 1920s. Around the same time, market research in the United States begun during the advertising boom of the Golden Age of Radio. From that point, there has been rise of companies that would interview people on the street about publications that they read and whether they recognize any of the ads or brands within the ads that were published in the magazines or newspapers the interviewer showed them. Data collected from these interviews were compared to the circulation of the publication in order to see how effective those ads were. Market research and surveys were adapted from these early techniques. 

Online Market Research

With people spending more time online, many market research activities have shifted online as well. Instead of companies actively seeking participants by finding them on the street or by calling them on the phone, people can choose to sign up and take surveys and offer opinions when they have time. Data collection is mainly done in a survey-style form. The introduction of online market research surveys has provided several benefits including fast delivery of the survey to a large amount of potential respondents and having results almost immediately once surveys are delivered back to the company. It is also by far the cheapest method of doing market research, and when starting new brand, saving money for reinvestment is of crucial importance