Before taking the leap into the business field, you must conduct research. Research is important to statistically back your idea up. See if the market will respond the way you think it will towards your business or business idea. Therefore, information about market research methods is very crucial to businessmen. After having established that there is a tremendous need to conduct market research, how to do it becomes a palliative question? What types of market research methods should you be using? What are market research methods appropriate for your research? To answer all these questions, you need to know all the market research methods that are there.
Market Research Methods
Once that is understood, which market research methods will be applicable for you will become clear. To answer the questions that you may have, we are giving you a list of the best market research methods available that will suit your needs. It will be based on the nature of your products or services and also the objective of the organization behind the market research.
Before the beginning, it is important to note that market research methods are divided into two major categories. Do not worry; we will be explaining market research methods under each category explicitly.
Primary research, often known as field research, is a direct method of obtaining first-hand data. It is referred to as field research as it requires a lot of fieldwork or on ground inquiry. The characteristic of this segment of research is that the data collected is first-hand data.
First-hand data is equivalent to data that is collected directly by you or by someone for you. This segment aims at collecting original data rather than depending on other sources for your data. Remember to tally your research objective before selecting a market research method. Here are market research methods that qualify under primary research.
A survey is the most commonly use market research method. That will bring us to an important question. What is a survey? A survey is a very wide-range market research method. The feedback page you receive at the end of your meal in a restaurant is a survey.
The websites that ask you to fill in your preferences before using it is also a survey. At the billing desk on a Pantaloons counter, there is a feedback machine. It asks you to rate your experience on a scale of one to ten. This is also a survey. This market research method is great to understand your consumer behaviors, and when your sample population is large. It can be used to help you get an understanding of what your consumers think of your products or services.
For example, what they think of the cost-effectiveness of the product or service? What is the derived level of satisfaction with your product or service? However, here are some important things to note about surveys. Surveys tend to be time-consuming and money demanding as methods employed for market research. As a survey is a quantitative market research method, it develops focus on studying everything objectively. Hence open-end questions on a survey might not give you a result that can analyze.
Unlike surveys, the interview is a qualitative market research method. They are a great way to collect qualitative data as it allows understanding of the consumers’ views and opinions. They are not confine by the close-ended questions. These interviews can be in the form of telephonic interviews, face to face interviews, or via video calls. The objective is to have a free-flowing conversation with the subject to be able to understand their opinions.
This form of market research method is employed in exploratory research. One benefit of this form of market research method is that it can be used to resolve consumer complaints and problems. Interviews require an expert to conduct them. They are time-consuming and can limit to a small number of subjects.
Secondary research refers to looking for data that already exists to employ for your use. There is no investment in the collection of new data. Efforts are employed in trying to obtain data that is relevant to your market research. Due to the advancement of technology, there is a lot of data available online. You have to target your topics and aim to find relevant data for the same. Secondary research is also coined as ‘desk research’ since all the work can be done while seated at a desk as opposed to primary research where one has to go on the field for the collection of data.
This can be in the form of consensus, psychological findings related to consumer behavior, advertising techniques unique to each field, etc. However, there is a possibility that you may not find the kind of data that is necessary for your market research. In that case, you resort to primary market research methods to collect unique and fresh data.
Sales data refers to data on the internet about the sales of a particular kind of product or service. This can be important to understand the scope that your product or service has in the market. It can answer questions such as whether the market has a good value for your product or service? Are there enough consumers for it? Is there a high demand for those products and services in the market? Such answers can help you before beginning a new venture or while expanding your business. This will also show you what your performance levels will have to be to remain in the market.
The amount of competition can also explains through this data. After taking a look at Sales data, you will know where to place your efforts. However, not all data is free. Some companies require you to buy data to analyze it. Keep that in mind, before selecting your market research method.
Government Publications and Statistics
This sort of data is basically demographics and population trends. This is an important market research method because it gives you an idea of the buying and spending capacity of the population of your area. This will guide you to make decisions about when to invest and when not to.
This can easily have access through government websites most of the time. The information about copyrights and patents is relevant to any business. The very last thing you want is a litigation war. Government publications keep a record of all such things.
We have been provided you with a clear understanding of market research methods. Do not step into the jungle of business without knowing what tress will aid you and what will poison you. Keep track of all the animals in the jungle. This is possible only if you do market research. Research and survive in the jungle of business.