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About Market Research Methods
Several market research methods can help you gather the information you need to gain an advantage in the marketplace. Data can serve as the basis for successful strategies and models in business. Having extensive and accurate market research allows you to understand your target audience better, fill in the gaps in your market, learn from your competitors, and allocate your resources most profitably.
Understanding Market Research
Marketing research refers to the systematic collection, recording, and analysis of quantitative and qualitative data related to issues related to the marketing of products. It involves specifying data to address these problems, designing methods to collect information, and managing and implementing the data collection process. Once the collected data is analyzed, its results and implications are sent to a team working on this analysis.
Different Market Research Methods
Below listed are some of the different market research methods in brief:
1. Face To Face Interviews
From their earliest days, market research firms interviewed people on the way about the newspapers and magazines they regularly read, asking them if they remembered any ads or brands that ran in them. The data collected from these interviews were compared to the publication’s circulation to determine the effectiveness of those ads.
Market research and surveys were modified from these early techniques. To understand your market, it is essential to understand demand, market size, economic indicators, location, market saturation, and pricing.
2. Focus Groups
A focus group is a small numeral of representative customers selected to try a product or view an advertisement. Subsequently, the group is asked their opinion about the product, the company brand, or the competition’s products.
3. Surveys
With surveys, companies reach out to participants to answer questions. They can conduct surveys through various means, including:
- Phone: Company representatives make cold calls to ask people to respond to scripted questions.
- Mail: The company sends the questions in written format to people’s mailing addresses.
- Online: The company reaches out to participants by email or with a link to an online form they can complete.
- In-person: The company communicates with people they encounter in high-traffic areas. In-person surveying allows participants to sample products or services.
4. Online Market Research
Market research activities have also shifted online as people spend more time online. Data collection still uses a survey-style form. But instead of companies actively looking for members by searching them on the street or cold calling them on the phone, individuals can select to sign up and take surveys and provide feedback when they have time. This makes the process much less intrusive and rushed, as people can participate on their own time and free will.
5. Social Media Listening
Social media users often offer opinions on various topics, including companies and their products. Its listening allows researchers to search for discussion topics and analyze what consumers say.
For example, a company can search for mentions of its flagship product and see the opinions of people who have bought it. This way, they can collect data on perceived strengths and weaknesses and potential areas for improvement. Because ideas are not solicited, the data likely represent honest, unfiltered views.
6. Observations
In market research, observation refers to studying how consumers behave when they buy. Often, it involves filming shoppers in a market setting, such as a store, and analyzing their buying habits or patterns. If they are unaware of the observation, this method can show their natural selves instead of how they think of themselves.
For example, observation can show researchers which in-store stimuli may affect shoppers’ purchases, which products attract the most shoppers, and how packaging or displays influence decisions.
7. Field Tests
In a field trial, a company allows users to use a product under normal conditions and then collects the data provided by the participants. For example, a company developing a new type of toaster might hire people to use the toaster for a specified period. Participants would record and submit their impressions, which the company would analyze to improve the product.
Alternatively, a company could put a new product in a store to see how shoppers respond. The purpose of the test might be to analyze buyer reactions to advertising, determine the extent of the product’s appeal to casual buyers, or provide a sample of product usage before collecting feedback.
8. Competitive Analysis
Competitive analysis is a secondary market research method in which a company collects and analyzes competitor information. It involves identifying your business’s primary and secondary rivals and determining their bids, profits, marketing strategies, and more.
This information can give you an idea of the strengths and weaknesses of your competitors and your position on them. It can also provide insight into successful business models and consumer preferences, allowing you to implement strategies that are more likely to be profitable.
9. Public data
Public data is a secondary market research method that involves finding and analyzing market-related data available to the public. Often this research is available for free on the Internet or in the library. The sources of this information may be research centers, surveys, or government databases. In addition, companies often supplement their primary market research with public data to confirm the report or compare it with other data.
10. Purchased data
Companies lacking the time or resources to conduct market research can purchase data from various sources. Several market research companies sell subscriptions to access their research databases.
An annual subscription can cost up to $8,000, giving you market research that spans multiple industries and countries. This option can be helpful for small or medium-sized companies that cannot afford to invest in primary market research.
11. Analysis of Sales data
Sales data analysis can be a proper secondary market research method used in other ways, such as competitor analysis, to show the relationships between a company’s strategies and sales. It can also provide insight into consumer buying habits in your market and help you spot consumer trends.
Conclusion
Hence, Market research through its methods allows for a deeper and more comprehensive understanding of consumer values. This information can in addition,be helpful when developing products and creating marketing strategies.
Market research can also reveal consumer opinions about companies and products. Knowing where a company stands about others in the public opinion forum, you can assess the factors contributing to a company’s success and determine how to incorporate successful strategies into your model.