Market Research

There are four types of market research that organizations and institutions use to gather and analyze data. Surveys, perhaps the most common form of market research, are instrumental in gathering quantitative data. Surveys can be used by anyone and can gather information from almost any source, including online and in stores. Interviews are another common form of market research available to companies. Ideal for collecting qualitative data, interviews involve gathering information by asking open-ended questions. Focus groups are useful for determining sentiment regarding a product or service. Focus group participants provide unbiased opinions in a group setting, where their feedback is compiled in order to reach a particular conclusion. Finally, observation is a powerful form of market research, as it provides unbiased information in common environments where a product or service is used.

Market research can be conducted several ways. The approach that is ideally suited for your project will be determined by the type of data you wish to retrieve and the budget at your disposal. If you are interested in gathering data from a wide audience, producing an online survey that many individuals can take is the best approach. Creating a questionnaire within an online tool such as SurveyMonkey allows for stress-free survey development as well as easy distribution simply by sharing a link. If your objective is to gather hard-to-get information from senior executives, then conducting a series of interviews with key C-level contacts could provide the information you need. The challenge will be scheduling appointments with difficult-to-get executives in addition to encouraging them to willingly provide the information you need. Often, using the services of a credentialed research consultant can provide helpful insight into questionnaire development and the kind of interview questions that could garner the insight you need.

There are typically seven steps to consider when developing an excellent market research study. These steps include pre- and post-data-gathering steps and are defined as follows:

1. Determine your questions or problems. It’s helpful to know what information you’re looking for or what problem you’re looking to solve.
2. State your research objectives. Once you know what you’re looking for, determine how you envision obtaining it.
3. Design your study. This will include questionnaire development or the creation of interview questions for a focus group or interviews.
4. Identify your sample. Before you launch your sample, it’s important to know who you want to answer your questions.
5. Collect the data. Once your questions and audience are set, start collecting data.
6. Process and analyze your data. After the data has been collected, you can begin to analyze it for the purpose of drawing a conclusion.
7. Formulate your conclusion and deliver your report. Once you’ve answered your question, explain how the data supports the answer or findings.

There are really several purposes of market research, but perhaps the primary one is to verify a market condition or need. Many companies conduct market research because they want to launch, refine, and promote a product or service. Market research helps provide insight regarding opportunities that might exist regarding product development and market selection. Market research can also be conducted to analyze the competition, help understand the strength of your brand, and better understand your customer. These all support the notion that companies use market research to better deliver products and services.