Market research is conducted so that organizations can answer questions such as:
Who is my target market?
How can we reach them?
Where are they?
What do they want?
What features do they currently use?
Why do they buy from us?
Why do they buy from the competition?
What level of satisfaction do they have?
What do they expect to pay?
What would they pay more for?
Market Research’s intent is to equip organizations with information to make informed, objective decisions. It is not a crystal ball. Just like if you were investing in a publically traded company you would do research before you invested. Before organizations invest in making products and services for customers they should do research to determine the viability of the market. It is an organizations due diligence.
Additionally market research is conducted to assess an organization’s competitive situation. Where does the organization stand relative to the competition?
Market Researchers talk about Four types of research
Primary, Secondary, Qualitative and Quantitative
Primary research involves original research obtained by asking questions directly of the customers, potential customers, buyers, sellers, etc. It is conducted quantitatively or qualitatively. Quantitative methods include survey and qualitative methods include as focus groups, user groups and on-line communities. Survey sampling is very important in quantitative research. Quantitative research gives you statistically valid data where you can make assumptions about an entire population.
While surveys are considered quantitative research, focus groups and on-line communities are considered Qualitative research, in that the results cannot be measured and applied to the total population. The data collected from individuals in these groups can help organizations get an overall feel for how a group may be thinking or general attitudes. You cannot conclude that the attitudes of a qualitative group will be the same of another group, because the data collection is not done randomly.
Given the social media on-line communities and social “listening” much research today is qualitative in nature. Market research methods go in and out of style. Ten years ago quantitative, primary research was most often practiced.
Secondary research is research conducted using already published data. There is a tremendous amount of data and developed research available. Secondary research is conducted for competitive intelligence. Demographic data collections about population from sources such as the census bureau is secondary research. Secondary research is like research you did when you were preparing a term-paper in school.
NO. Of course, this is a very biased no because market research is how we making our living. But there is a lot of bad research out there. If you have a lot at stake you will see a positive financial benefit in investing in objective market research from a professional firm. Its only natural for those within a company to be protective of products and services they develop, it is difficult for anyone to hear that someone does not like what they do. And it is difficult too, not to take the good remarks more seriously than the not so good.
When you are presenting a marketing case, and you have professional marketing research to support how you are going to market your product or service, it is a much easier path for budget approval and product launch.
Obviously, it depends on the project, the size of the market, the number of stakeholders involved and the type of research. On-line surveys in a B2B market typically start at $5,000 for the development, implementation and analysis of the data. Focus groups start at around $7,000. But each project is unique given the audience and scope.
Market Directions has conducted B2B online survey from start to finish in as little as two weeks. Consumer surveys can now be done in days given all of the on-line panel’s available? However, an on-line survey from start to finish typically takes 4 to 8 weeks. A focus group can be organized and conducted within a week.
An on-line panel is a group of people who sign up with a research data firm to take surveys. The research data firm then leases that panel out to firms like Market Directions. Some reputable panels are Toluna, SSI and Research Now. There are also specialized data firms for specialized audiences such as the medical field.
We Market Directions recruits respondents for research we let them know that their answers not only benefits the company doing the research but also benefits the. It is a chance for citizens, consumers, and members to influence organizations. Research is widely used to help clients understand what people want and need, and when respondents make their voice heard, they have an impact on the decisions an organization makes and the products and services they use and desire.
There are many other questions you will have about market research and how your organization will benefit. Please give us a call or write us with any questions you have. We will be glad to give you a free consolation to help you decided which research is right for you. 800-475-9808 or email [email protected]