Ever wondered what it takes to build a flourishing business? Aiming to provide maximum sales and profit, business research helps you to gather comprehensive information pertaining to your business and accordingly making relevant changes if required. So, in this process of being successful, we gather all types of data in order to better define our strategies and understand what product or services customers really want. And in case, you’re planning to expand your business, research can help you determine your odds of positive results. In this blog, we’ll help you understand the basics of research and analysis.
This Blog Includes:
- What is Business Research?
- Importance of Business Research
- Types & Methods
- Qualitative Research Methods
- Quantitative Research Methods
- Advantages and Disadvantages of Business Research
- Scope of Business Research
- Role of Business Research
- Career Prospects
What is Business Research?
Business Research can be simply defined as a process of gather comprehensive data and information of all the areas of business and incorporating this information for sales and profit maximization. If you are wondering what is Business Research, it is a systematic management activity helping companies to determine which product will be most profitable for companies to produce. Also, there are multiple steps in conducting research, with each thoroughly reviewed to ensure that the best decision is made for the company as a whole.
Example of Business Research:
Let say there’s an automobile company that is planning to launch a car that runs on CNG. In order to promote cleaner fuel, the company will be involved in developing different plans and strategies to identify the demand of the car they are intending to launch. Other than this, the company will also look for competitors, the target audience, keeping in mind the distribution of CNG in India. Hence the researches are conducted on various ideas to formulate a sustainable and more efficient design.
Importance of Business Research
When it comes to the question why Business Research is important, it has an essential role to play in varied areas of business. Here are some of the reasons describing the importance of Business Research:
- It helps businesses gain better insights about their target customer’s preferences, buying patterns, pain points, as well as demographics.
- Business Research also provides businesses with a detailed overview of their target markets, what’s in trend, as well as market demand.
- By studying consumers’ buying patterns and preferences as well as market trends and demands with the help of business research, businesses can effectively and efficiently curate the best possible plans and strategies accordingly.
- The importance of business research also lies in highlighting the areas where unnecessary costs can be minimized and those areas in a business which need more attention and can bring in more customers and hence boost profits.
- Businesses can constantly innovate as per their customers’ preferences and interests and keep their attention towards the brand.
- Business Research also plays the role of a catalyst as it helps business thrive in their markets by capturing all the available opportunities and also meeting the needs and preferences of their customers.
Types & Methods
Business research plays an important role in the business intelligence process. This is usually conducted to determine if a company can succeed in a new region through competitive analyses and better marketing approach. Due to this, this broad field has been distinguished into two types namely, Qualitative Research and Quantitative Research Method.
Here are the most important types of Business Research:
Qualitative Research Methods
It involves putting open-ended questions to the audience through different channels of communication to understand why researchers think in a particular manner. Stress is laid on understanding the intent, attitude, and beliefs to figure out the behaviour and response of the customers. Moreover, the goal of Qualitative Business Research is to get in-depth knowledge about the subjects of the research. Moreover, qualitative research enables to put the perspective of the consumer in front of the researcher, so that we can understand and see the alignment of the ideas between the market and the business.
The data is collected in this type of business research is by the following methods:
- Case Study
- Focus Groups
- Ethnographic Research
- Website Visitor Profiling
- Content Analysis
Let us take a detailed look at some of the ways-
Interviews and surveys are similar in nature. The only difference lies in the fact that the responder can put a question in an interview whilst it is not possible during a survey. Through interviews, it is easier to understand a detailed perspective of the person with respect to the subject of research. A mobile brand conducted research to understand why certain colours are preferred by male and female customers. The research revealed that since red is assumed to be a feminine colour, it is more preferred to females than males.
focus groups is a type of business research which involves only a set of individuals. Each selected individual represents a particular category of the target market. The major difference between interviews and focus groups is the number of people that it involves. With an intention to launch a new product for a particular group of society, focus groups prove out to be the best way to understand the needs of the local audience.
Case Study Research
One of the most effective ways for business research is conducting case studies. With the motive to understand customer satisfaction, challenges that usually the customers face while using the product and hence, providing them with the right solution can be achieved by analysing data secured through data secured by case studies. Case study researchers are conducted in many fields of business that ultimately aid organisations in improving their product or service.
Quantitative Research Methods
With the employment of mathematical, statistical and computational techniques, quantitative research is carried out to deal with numbers. This systematical empirical investigation starts with the acquisition of the data and then moving on to analyzing it with the help of different tools. The goal is to identify clientele and then meet the targets of the audience. As the method of business research employs a questionnaire to determine the audience response, the questions are built around the idea that the audience knows about the product or the services that the firm offers. Some of the key questions answered in quantitative research methods include, who is connected with your network, how do they qualify the ‘product’ or how regularly they visit your website.
The data is collected based on the following research:
- Casual Comparative
Let us take a detailed look at some of the ways-
It is the most common method under quantitative research via which a huge amount of data can be collected with respect to a product or service. A common set of questions are asked to the people and they are asked to provide their inputs. To understand the nature of the market in-depth, this method is massively used by leading organisations all across the globe. Analysing data recorded through service helps organisations in taking suitable decisions.
Under this research, usually two entities are put together to examine the impact they create over each other. As suggested by the name it is the best process to understand patterns, relationships and trends.the data grasped through correlation research is generally combined with other tools as one cannot achieve a firm conclusion using this type of business research.
Experimental research is purely based on proving a particular theory that is pre-assumed. True experimental research companies can understand varied behavioural traits of the customers that further assist them in generating more revenue. Exposing a set of audience to common parameters, their behaviour is recorded and hence analysed. This can be understood as the main basis of the experimental research.
Advantages and Disadvantages of Business Research
There are certain pros and cons of business research that you must know about. Here are the advantages and disadvantages of Business Research.
Advantages of Business Research
- Business Research plays the role of a catalyst in identifying potential threats, issues as well as opportunities.
- It provides a detailed analysis of customers and the target audience, thus helping in building better relationships with one’s audience and capturing the areas which we might be missing out on.
- It also anticipates future problems thus the enterprise is able to tackle those uncertainties and prepare for them beforehand.
- It keeps a continuous track of competition in the market and gives businesses the scope to come up with better strategies to tackle their competitors.
- Business Research also conducts a thorough cost analysis thus helping the company efficiently manage resources and allocate them in an optimal manner.
- It keeps you updated with the latest trends and competitor analysis.
Disadvantages of Business Research
- Business Research can be expensive and time-consuming.
- It also has the danger of being assumptive and imprecise at times, because the focus groups might be small or can be highly based on assumptions.
- The market is ever-changing and ever-evolving and capturing the right trends or anticipating them can constitute a complicated process for business research.
The process of business research can be as comprehensive and as detailed as a business wants it to be. Generally, a company takes up research with a certain aim or hypothesis in order to figure out the issues, opportunities and trends and how they can be leveraged in the best way.
Here is the step-by-step process of Business Research:
- Identifying the Opportunity or Problem
To begin with the research, we first need to know what is the problem or the opportunity we would be leveraging on. It can be a popular trend or a common problem that a business is facing and can potentially become the headstart for the research process. Once you know the problem or the opportunity, go ahead with giving an understandable statement of what it’s about, what the hypothesis of the research will be as well as its objectives.
- Decide and Plan the Research Design
The next step in the business research process to find the right research design which suits the objectives and overall plan of the research. The most popular research design are Quantitative and Qualitative Research.
- Determining the Research Method
The research design is closely connected to the research method since both qualitative and quantitative research designs have different methods for data collection, analysis, amongst others. So, once you have put a finger on what the right research design will be, go ahead with finding the right research method as per the plan, types of data collection, objective, costs involved and other determining factors.
- Collect Data
Utilising the research method and design, the next step in the business research process is to collect data and assimilate it.
- Data Analysis and Evaluation
After assimilating the data required, the data analysis will take place to gather all the observations and findings.
- Communicate Results
The presentation of the business research report is the concluding step of this procedure after which the higher management works upon the best techniques and strategies to leverage the opportunity or tackle the issue.
Scope of Business Research
The scope of Business Research is multifarious and reaches out to many specialisations and areas. Let’s take a look the scope of business research across various specialisations:
- Marketing Management
When it comes to business research, it becomes an important part of marketing management that analyses consumer behaviour, target audiences, competition, price policy, promotional plans and much more.
- Financial Management
It also plays an essential role in budgeting, financial planning, cost allocation, capital raising, tackling fluctuations with international currency as well as taking finance-related decisions.
- Production Management
Production Management also includes business research as it helps in product development, planning out for a newer one, finalising the right technologies for the production, and so on.
- Materials Management
Business Research is an important aspect of checking the best materials and carrying out its production, supply chain management, logistics, as well as shortlisting negotiation strategies.
Role of Business Research
There is an incremental role of business research as it’s importance is across every aspect of the business. Let’s take a look at the role of business research in an enterprise:
- The most primary role of business research is that it helps across every decision in the business, from product innovation to marketing and promotional planning.
- Business Research also helps in forecasting for a business, whether in terms of competition or any other types of problems it will be facing.
- Another key area where this plays a bigger role is ensuring consumer satisfaction as through research, we can carry out research and highlight areas where we can efficiently serve our target audience.
- Business research also helps in implementing cost-effectiveness in a business as it can assist in cutting costs wherever needed and investing more in those areas, where profit is coming from.
In order to build a career in Research, you can simply grab a degree in the field of Management, Business or Administration. So, students with an understanding of the core concepts of business and an inclination for research can consider it as a go-to option. Other suitable programs can be Master in Management, MBA Business Analytics, MBA Data Analytics, to name a few.
To know more, check out Qualitative Research Methods!
Business research can simply mean researching about every area of a business and using the provided information and data to ensure profit maximization.
There are different types of business research such as interviews, surveys, focus groups, correlational research, ethnographic research, case study research and quantitative research methods, amongst others.
Business research is essentially important for various aspects of a business such as profit maximization, cost-cutting, financial management, personnel management, consumer behaviour, etc.
The process of business research depends upon the type of research design you are opting for. To start with, we first need to determine the aim or objective of business research, then plan out the whole process which includes the types of methods we will be using, then the actual research takes place followed by the data found that helps in understanding the key observations and how they can be implemented to actualise research hypothesis.
If you’re thinking to start a product line in your existing business or planning a startup, business research is a fundamental process that help you to navigate the opportunities and obstacles in the marketplace. Knowing your strengths and weakness can help you come up with advance and powerful research techniques that will make it easier to manage. Are you planning to take your higher education abroad? Then, you can quickly book a counselling session with the experts at Leverage Edu and we can help you build the right platform for you to grow in the corporate world.