Market Research

What Is It?

Market research is a systematic approach to creating quality decision making for marketing departments.

A Market Research Report requires that you plan, collect, and analyze data.  Research services have three main goals, to be: descriptive, explanative, and predictive in regards to relevant data for a solution to a particular problem.

Why It is Important

A targeted research approach can benefit decision making.  Understanding of a problem will better help in creating a quality solution.  A good grasp of your target market and products can maximize customer value by supplying accurate and efficient results.  Once a research process has ran a cycle, you create an opportunity to improve the process.  The ability to take the results of the research process and identifying improcements or additive strategies that can create productive feedback.

Main Components of a Market Research Method

Process needs to:

  1. Identify Problem
  2. Design Plan to Acquire Relevant
  3. Information
  4. Create Procedure to best obtain
  5. information
  6. Collect Data
  7. Analyze Data
  8. Prepare Report

Identify Problem

You need to find out what kind of questions your research is trying to answer.  This could be to discover your target market’s preferences.  Or how customers would react to a certain product or service.  Amazon asked how to rank sellers by determining quality and they came up with the public feedback system as a performance metric.

Design Plan to Acquire Relevant Information

You first need to figure out what information will be relevant to answer your problem.  After the important information and appropriate quantifiable metrics of performance are configured, you brainstorm ways to collect info.  You need to find someway to collect required information.

Create Procedure to best obtain Information

This can be done with surveys online, in person, on the phone, or you can access available preassembled data.  You can compensate customers for filling out a survey either with cash or discount.  Some companies outsource this and hire a survey company to organize test groups, create and conduct surveys and assemble information.  You can pay customers at a mall to take a survey or react to a product.  Fast food restaurants offer a discount on a receipt for completing a survey online.  Malls have giveaway programs in the middle of a mall so you fill out info.

Collect Data

After brainstorming relevant data, creating metrics to measure; you can collect data from forms, submitted information online.

Analyze Data

Once you have the info you can figure out how a product was perceived, or more define what demand or market segment you serve.

Prepare Report

Further methods of customer research can enhance results.  This can be done through feedback systems, surveys, or finding new sources of relevant data.  Customer Research is differentiated as it’s focus is on shopping behavior and satisfaction outcomes.

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