Types of research
Market research is the collection of information or data to better understand what is happening in the market place. A companies marketing department needs to know about economic trends and fashions as well as consumers' views. Based on this information, they can put together a marketing plan, which will meet their own needs as well as those of their consumers.
There are two general types of research:
- Primary or field research
- Secondary or desk research
Primary or field research
Obtaining new data for a specific purpose. The marketing department of a firm or a specialist research organisation can provide this. Usually, the data is gathered by face-to-face interviews, by telephone or by post, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded.
Field research has the advantage that the firm itself has control over the whole process. The disadvantages are that it takes longer, and costs more.
Secondary or desk research
This is the use of existing data that has already been collected. It can be anything from a company's own sales statistics to Department of Trade and Industry reports. Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations.
Traditionally, these have been paper-based, but more and more information is now available on CD-ROM or on-line through the Internet. Desk research has the advantages of being cheaper and quicker than field research. The disadvantages do not know if the findings are accurate, or how relevant they will be to your product.
The research process
Marketing departments need to have information so they can get their marketing mix right. For example, they will want to know what similar products already exist and how much they cost. They will also want to know whether consumers will want to buy their new product, and what they think about it. The process for doing this is as follows:
- Identify a problem
- Set objectives
- Gather data
- Analyse data
Identify the problem:
Make sure you know what you are trying to find out, and how it will help you. This is something that people sometimes forget. There is an endless amount of information available, so it is important to be focused.
Set objectives:
You have to decide which are going to be the best ways to gather this information. Choose the most appropriate reports and journals. Depending on how much time you have, choose what field research you can do. Designing questionnaires and testing products on consumers can take a long time. You also have to decide whether you have the necessary skills, or whether you need to use a specialist research organisation. This is a more expensive option.
Gather data:
You would usually do desk research first, because it is cheaper and quicker. Then supplement this with field research, so that you don't copy your findings. Designing the questionnaires and conducting the surveys takes place during this phase.
Analyse data:
Now that you have the findings, you have to work out what they are telling you. If you identified your objectives before you started, this should not be too difficult. You must look for trends and patterns. Then you should see how this affects your marketing mix.
