The importance of market research is often overlooked as it there are many accusations that it doesn’t take into consideration the correct factors or in not enough detail; such as future trends. Contrary to this belief however, it is extremely important to understand and analyze the the history of a specific market or product as well as investigate the needs of consumers.

An example of successful market research is in the cell phone market. An article by Information Week highlights the results of the “ABI Research survey of the handset market” which was recently conducted in the United States. The results of the survey show that there has been a 20% increase in cell phone sales over the past year with most of those sales in the Smartphone market. They proceed to identify the reasoning behind the increase in smartphone sales and bring forth the notion that the recession played a large role in this shift of consumer purchasing. During the recession consumers were buying cheaper phones(usually not smartphones). This trend allowed for market analysts to accurately predict the fact that once the economic crisis came to an end, people would be more likely to increase expenditure on Cell Phones, more noteably in the smartphone market.

This article demonstrates how Market Research can help companies predict where to allocate their resources to maximize profit, in this case it happened to be the smartphone market.

Click Here to read the article on Information Week.