Which type of research study would you use to determine the characteristics of market?
Show
Select your languageSuggested languages for you: The first step in formulating most marketing strategies is conducting market research. It is an essential step as it allows companies to explore whether specific ideas are likely to work or not. Before conducting market research, it is vital to figure out which type of research works best for the current project. Let's take a look at how exactly marketers can do this. Market research definitionMarket research is used by many companies worldwide. Whether small or large and whether the company spent £100 or £1 million, all businesses use a form of market research. Market research is the process through which organisations collect data about customers and markets to help them construct better marketing strategies. Check out our explanation of Marketing Strategy to find out more. It helps companies understand why customers purchase certain products or brands. Market research is directly related to the marketing mix; therefore, it allows marketers to make decisions about product, price, promotion and place through the data they collect during market research. Market research involves collecting and analysing information about markets, consumers, and their behaviour. Market research involves designing a research project and collecting, analysing, and reporting relevant data. As a result, market research may help companies understand:
Some organisations might have large departments working on research and spend millions yearly conducting market research. Other companies might hire external organisations and consultants to help them conduct market research for specific projects. For instance, pharmaceutical giant Novartis spent $9.5 billion on research and development in 2021.1 Types of market researchThere are two branches of market research depending on the organisation's objectives. Firstly, the firm must decide whether to conduct primary or secondary research. Secondly, the researcher must decide whether to use quantitative or qualitative tactics. Let's now take a look at these four types of market research. Primary market researchPrimary market research is sometimes called 'field research' because the researcher needs to take a direct approach to collect data. This is a type of research that an organisation plans itself and involves collecting new data that has not been gathered before. Primary research involves collecting and interpreting primary data. This is new data that has not been collected before. Primary research involves collecting data based on a research problem or question that is specific and unique to the business. Primary market research can be carried out by the company itself or an external organisation, but the data collected will be brand new. It often involves gathering data on the business's existing customers. Primary data are collected through surveys, focus groups, interviews, and questionnaires. To learn more about this data collection technique, check out our explanation of Primary Market Research. Secondary market researchSecondary data has been collected before for purposes other than the research question or problem at hand. Secondary data can be collected both internally and externally. This could include things like sales and inventory records of the company (internal), internet research (external), market reports (external), or information from the U.K. Census (external). Secondary market research involves interpreting secondary data. This type of data was collected before the researcher began their research. Secondary research is often referred to as 'desk research' as it can be conducted from your desk. Your role as a secondary researcher is to find data relevant to your business research objectives. To learn more about this data collection technique, check out our explanation of Secondary Market Research. Figure 1 below outlines the main differences between the two types of market research. There are advantages and disadvantages to both primary and secondary research. The type of research chosen will depend on the objectives and aims your business is trying to achieve. Fig. 1. Two types of market research, StudySmarter Market Research: Qualitative researchThis research tries to describe specific situations and understand characteristics, opinions, concepts, and experiences. It is used to understand complicated customer motivations that are difficult to study with quantitative methods. It is also used to illustrate the impacts of different factors on customerdecision-making. Qualitative researchfocuses on gathering and analysing data that is not numerical. Qualitative data is usually collected from smaller sample sizes. The goal of this type of research is to question and observe what people say, do, and how they react to certain situations or ideas. Questions are usually open-ended, and it is up to the respondent how they answer each question (no predetermined answers). Market Research: Quantitative researchQuantitative research usually involves structured questions, where responses to those questions are predetermined, and respondents choose between one of the predetermined answers. Sample sizes are generally larger (more people surveyed). Quantitative research is the opposite of qualitative research. This type of research focuses on collecting numeric data, which the researcher can later analyse through different statistical measures. For instance, understanding age's effect on the number of clothes customers purchase each month is an example of a quantitative research project. Marketing research processNow that we understand why organisations conduct market research let's explore the process behind it. The marketing research process is made up of six steps (see Figure 2 below). 1. Define the research problem and objectives During this step, the researcher needs to define the problem they are trying to solve with their research. It is vital to make sure that the problem the researcher decides to focus on is not too broad. The researcher then has to define their objectives and decide on the type of research they will conduct:
This step should result in a defined research question. 2. Develop the research plan The researcher then has to develop the research plan. During this step, they decide whether they will be collecting primary or secondary data and the type of research method they will use (surveys, focus groups, etc.). This step also involves coming up with a sampling plan. Sampling could either be:
3. Collect the data During this step, the researcher conducts the research. If their research method is an online survey, this is when they would send participants the survey and ask them to complete it. 4. Data analysis During this step, the researcher uses various statistical tools if they are conducting quantitative research or analyses different interviews if they are conducting qualitative research. 5. Present findings During this step, the researcher will format their analysis and data into detailed insights - translate data into valuable recommendations for managers. For example, imagine a researcher exploring customer satisfaction in a restaurant. Instead of mentioning that a unit increase in staff friendliness will significantly increase perceived service quality, the researcher would advise the restaurant manager to carefully train their customer-facing staff as this could improve customer satisfaction. 6. Make a decision This is where the organisation would decide how to tackle the problem they were researching with the researcher's findings. For example, this step could involve a decision on whether to launch a new product or not. Market research examplesLet's now take a look at a few market research examples. Example of primary market researchA popular type of primary market research is surveys. You can customise your survey to be as short or as extensive as you wish. Surveys can be digital, received via email, for example, or in a physical form, like a card you receive to share your thoughts after staying in a hotel. Surveys are helpful when you want to measure something specific. When you use certain services, you will likely receive an online survey after completing the purchase and utilising the service. An example of this is ordering food online through a delivery service like Deliveroo or Uber Eats. Once you have made your purchase and received your food, you could find a survey in your inbox with prompts like: How likely are you to recommend this service to a friend?Please rate your experience with this service on a scale from 1 to 5. How likely are you to use this service again? Answers to these questions are then analysed and turned into valuable data and actionable insights. Example of secondary market researchSecondary market research can take several forms. Consider the example below, which outlines how a marketer might combine various secondary sources. Imagine you are working for a company that is trying to develop a new product. Instead of conducting your own research, you decide it would be more efficient to gather information from existing resources. You look at industry reports and see data on whether the industry is growing and whether it seems profitable. You then examine market reports which describe customer needs and wants in the industry and predict customer attitudes and behaviours in the future. You also conduct internet research to investigate how your competitors act in the industry. You then look at your company's internal records of sales and expenditure for current products and brands you offer. Based on the data and information gathered, you then decide whether it is worth developing a new product; the type of product you should create (what are customers looking for?); how you could differentiate your product from competitors, and how much money you would need for the development of this new product (budget). How to do market research for a startupFounders often establish startups to address a problem in the market or to take advantage of certain opportunities other organisations have not yet addressed. However, conducting market research for a startup is similar to that of an established company. Once the startup has its main idea, it must:
Similar to other forms of market research, startup market research also aims to understand markets and consumer behaviour. However, it is crucial for startups to also conduct extensive environmental and competitor analysis before launching the research and development of a new product. Having a cohesive market research plan and understanding the ins and outs of an industry or market will also increase the chances of investment into the startup. Market Research - Key takeaways
References
Frequently Asked Questions about Market ResearchMarket research is collecting and analysing information about markets, consumers, and their behaviour. The first step in the marketing research process includes defining the research problem and objectives. During this step, the researcher needs to define the problem they are trying to solve with their research. It is important to make sure that the problem the researcher decides to focus on is not too broad. There are two branches of market research depending on the organisation's objectives. Firstly, the firm must decide whether to conduct primary or secondary research. Secondly, the researcher must decide whether to use quantitative or qualitative tactics. Let's now take a look at these four types of market research. Market research is important because it helps marketers understand customers’ wants and needs. Market research can also help an organisation predict customer preferences and purchase patterns. This can aid in deciding how to position a products or brand in relation to competitors. Market research is also essential for developing marketing strategies. The purpose of market research is to understand what customers want and need within a target market or industry. It is also useful for gaining insight into customer behaviour and customers’ attitudes towards different products and services. Market research is essential for developing new products, introducing new brands or coming up with a new marketing strategy. Final Market Research Quiz
Question What is qualitative research? Show answer Answer Qualitative research focuses on gathering and analyzing data that is non-numerical. This type of research tries to describe certain
situations and understand characteristics, opinions, concepts, and experiences. Show question
Question What is quantitative research? Show answer Answer Quantitative research is the opposite of qualitative research. This type of research focuses on collecting numeric
data which can, later on, be analyzed by the researcher through different statistical measures. Show question
Question Which of the following statements is correct about market research?
Show answer Answer Only statement I. is correct. Show question
Question What are the two types of market research? Show answer Answer The two different types of market research are primary and secondary research. Show question
Question What is primary market research? Show answer Answer Primary market research is a type of research that an organization plans itself and involves collecting new data that has not
been gathered before. Show question
Question What is secondary market research? Show answer Answer Secondary market research is a type of research that involves gathering data that already exists. This can
include internet research, examining market reports or government data. This type of information has been collected before for a purpose other than your research. Show question
Question What are two advantages of primary market research? Show answer Answer
Show question
Question What are two advantages of secondary market research? Show answer Answer
Show question
Question Secondary market research can _____________. Show answer Answer Provide access to industry-specific information Show question
Question One of the disadvantages of secondary research is:
Show answer
Question Which of the following is a disadvantage of primary research?
Show answer
Question Which of the following statements is correct about market research?
Show answer Answer Both statements are correct. Show question
Question How are marketing strategies formulated? Show answer
Question Types of market research are the same as methods of market research Show answer
Question ...... is a type of market research specific to a company Show answer
Question .... is a type of market research which applies existing results Show answer
Question ...... focuses on gathering and analysing non-numerical data Show answer
Question .... focuses on collecting numerical data and used through different statistical measurement Show answer
Question Collecting and interpreting primary data is Show answer
Question Collecting and interpreting data is ...... Show answer
Question Survey is a popular type of ....... market research Show answer
Question The following are all disadvantages of secondary market research except Show answer Answer Data is less specific to the business Show question
Question The following are all disadvantages of primary market research except Show answer
Question ...... is a research type that gives a business specific data Show answer
Question Other means of primary research are surveys, focus groups, collecting data from other researcher Show answer Discover the right content for your subjectsNo need to cheat if you have everything you need to succeed! Packed into one app!Study PlanBe perfectly prepared on time with an individual plan. QuizzesTest your knowledge with gamified quizzes. FlashcardsCreate and find flashcards in record time. NotesCreate beautiful notes faster than ever before. Study SetsHave all your study materials in one place. DocumentsUpload unlimited documents and save them online. Study AnalyticsIdentify your study strength and weaknesses. Weekly GoalsSet individual study goals and earn points reaching them. Smart RemindersStop procrastinating with our study reminders. RewardsEarn points, unlock badges and level up while studying. Magic MarkerCreate flashcards in notes completely automatically. Smart FormattingCreate the most beautiful study materials using our templates. Sign up to highlight and take notes. It’s 100% free. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Privacy & Cookies Policy What research can be done to Analyse the characteristics of market?The main types of market research are primary research, which includes focus groups, polls, and surveys, secondary market research, which includes articles, infographics, and white papers, qualitative research, which gives insights into how customers feel and think, and quantitative research, which uses data and ...
What is market research characteristics?In evaluating the quality of research project and making a value judgment on competency of the researcher, there are four key characteristics to consider; (i) scientific method, (ii) creative research, (iii) multiple methods, and (iv) the value measured against the cost of information.
What is the best type of market research?Face-to-face Interviews
This approach is perhaps the most effective source of data for professional services firms. Face-to-face interviews, however, do come with a couple of important limitations. First, they are the most expensive interviews to conduct.
What are the 3 types of marketing research studies?3 Types of Market Research: Which Does Your Business Need?. Exploratory Research. Companies use exploratory research methods to uncover facts and opinions regarding a particular subject. ... . Descriptive Research. ... . Causal Research.. |