Why do I need market research?
Market research can aid in making better business decisions. Market research is conducted to collect data that helps you understand the marketplace. It allows you to more accurately define the wants, needs, behaviors and attitudes of consumers regarding your brand and its products or services. It can be strategic (What should my brand stand for?) or tactical (Which of these two products should I introduce?) Market research can also assist you in estimating market size and share, as well as identifying new product opportunities.
How do I know when to do market research? Is it just going to confirm what I already know?
If you have limited information about your consumers, are looking to introduce a new product, are considering distribution in a new market or are losing share to competitors it is a great time to do market research. However, as we know, consumer needs and perceptions are always changing, so market research may also be used regularly as an exercise to stay in touch with their needs and ever-changing attitudes.
What are the two basic types of market research?
The two basic types of market research are Qualitative and Quantitative.
What is the difference between qualitative and quantitative research? And how do I know which one is best for me to use?
Qualitative research is exploratory in nature. It is used to understand how consumers feel, explore hypotheses, or gain initial insight into business issues. It utilizes a discussion setting and is inherently not projectable to the larger population. Quantitative research uses a larger number of respondents to provide learning that is projectable to the larger population and is often the basis for making final business decisions. Your research objectives will determine which type of research to use. Sometimes it is appropriate to use both types to fully address your research objectives.
What are the different types of qualitative methodologies available?
Focus groups (ideal size 6-8 people)
Mini groups (fewer people or shorter duration)
One-on-one in-depth personal interviews
On-line focus groups
What are the different types of quantitative methodologies available?
Electronic in-person surveys
Self administered mail surveys
How long does it take to execute a market research study?
The length of time it takes to conduct a market research study depends on the study’s objectives and the selected methodology
How much does a market research study typically cost?
Similar to length of time needed to conduct a research study, the cost of the study also depends on the objectives of the research and the methodology selected. Other factors that influence cost include how many respondents are needed, how difficult they are to find, and the length of the interview that will be administered.
Where does sample come from for a research study?
Sample for a market research study can come from various sources. It may be a list of customers provided by the client or it may come from a research company that has a panel of potential respondents.
Do respondents get anything in return for their time and opinions?
Yes, respondents that participate in a market research study are often paid or they may accumulate points toward reward certificates.