Market research methods

Introduction to Market Research Methods

• Market research involves collecting, analysing and interpreting data about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service.
• It’s the essential first step for establishing a business’s stance in a market and understanding its potential customers.

Primary Research Methods

• Primary research involves collecting new data directly from the source.
• Surveys and questionnaires can be distributed to prospective customers to gather firsthand data. These can be done online or in-person.
• Interviews provide a more in-depth understanding of a customer’s thoughts and can be conducted via phone calls, in-person, or through email.
• Focus groups involve a moderated discussion with a small group of individuals to gather diverse perspectives on a topic.
• Observation and field trials involve studying the behaviour of customers live or experimenting by releasing a pilot version of a product.

Secondary Research Methods

• Secondary research involves using existing data collected for a different purpose.
• Internet research provides readily available data and insights from previous studies, market reports, articles and social media posts.
• Library and academic database research can offer information from books, journals and scholarly articles.
• Competitor analysis involves examining the strategies, strengths and weaknesses of businesses operating in the same market.

Advantages of Primary Research

• Primary research data is specific to the business’s needs and no other business has access to the same data, providing a competitive edge.
• Reliability is generally high as the business controls how data is collected.
• It allows for direct interaction with potential or existing customers, providing deeper insights.

Limitages of Primary Research

• Can be time-consuming and costly, particularly with methods like focus groups and interviews.
• May suffer from biases as respondents may not provide honest or accurate answers.

Advantages of Secondary Research

• Typically involves less time and cost compared to primary research.
• Easy access to a large amount of data which can provide a broad understanding of a market.
• Provides a good foundation to establish the need for primary research.

Limitations of Secondary Research

• The data is not exclusive to the business and might be used by competitors too.
• It might be outdated or not specific to the business’s market.
• Quality and relevance could potentially be issues. The original purpose of the study may not align with the current research purpose which could skew interpretations.