6 Market Research Methods

Market Research Methods

Market research is one of the most important activities of an entrepreneur when he/she is in running the business. Each market research relay on certain methods, which is a way of collecting information or data.

It seems that 80% of a market research is a collection of valid information on the market. While 20% refer to the analysis and interpretation of information gathered. This is the 80/20 rule. Because the market is made up of consumers and competition and therefore, it is necessary collect information relating to them.

I want to mention something before starting with the six most popular methods that you can use for market research. The most important source of information is consumers. Why? Because the methods listed below you cannot  use with your competitors, but simply with your consumers. In such a way through your current and potential consumers, you will try to find information about competitors that will help you to implement market research.

It is necessary to take a care about information overflow that is not so good for this purposes.

1. Surveys

One of the most used methods for market research and one of the strongest weapons that an entrepreneur has is surveys. Surveys are most popular because it is easiest to implement and easiest to collect information that arrives in a form that is easy for analysis. Of course if you design it in the right way. Surveys can be implemented in several forms:

• Paper surveys.
• Telephone surveys.
• Surveys send through mail.
• Online surveys.

The process of conducting the survey can be implemented as follows:

• Preparation of survey questions.
• Choosing the distributing method of a survey.
• Dissemination of the survey.
• Collecting and analyzing the data.

2. Interviews

The second method that can be used in market research is interviewing. This simply means to meet some people who will be interviewed and asking him questions  that will be of interest to your market research. The interview is more difficult in comparison with a survey and will require more time for implementation. As a disadvantage can also be considered a number of people who can be interviewed. Interviews based on how he can implement it can be:

• Face to face interview.
• Phone interview.
• Online interview (Skype).

Implementation process of interviewing can be as follows:

• Select a group of people who will be interviewed.
• Contact those people and schedule an interview meeting.
• Prepare questions.
• Conduct the interview.
• Analyze collected information.

3. Observation

The old and still applicable and effective technique for market research is an observation. It means that entrepreneurs will observe a situation and will note different behaviors of a subject in the market. For example, one way of exploring the market for a retail business is to monitor the competitors. Well, in that situation the subject (competitor) will be observed to answer the questions like this:

• How  many people enter in the store?
• How many of them buy something?
• What is the profile of those people?
• And so on…

Implementation process of observation can be as follows:

• Select the subject that will be observed.
• Select which activities and behaviors must be observed.
• Implement observing.
• Processing and analyzing of the collected information.

4. Trial and Error

This method is not used so much, but it can give us useful information. It can be implemented on a random basis. For example, to implement something new and just see what results will be achieved. If we have the results, we will continue, but if we not have results,  then we must implement the improvement. In such a way, we can receive quality information from the market. You know what the market wants, what don’t want, what is the behavior, how to have influence on them…

5. Focus groups

Focus groups as one of the methods of market research is a very specific method, and probably it is under more expensive methods because it needs recording equipment and a special room for the implementation of the focus group session. At the focus group sessions, moderator uses the specially prepared questions that stimulate discussion within the group. Usually one focus group session lasts two to three hours, and it is necessary to conduct several sessions with different members to obtain the better results.

The process of implementation of this method can be as follows:

• Selecting the members of the focus group.
• Preparation of questions.
• Conducting and recording sessions of discussion.
• Analysis of information gathered..

6. Asking Employees

The last in this list, but not a less important than the other is the employees, especially sales team of your business. They are the ones who are in a direct daily contact with customers, and they are those who communicate with them daily. Several questions on which they can get the answer from customers will bring you quality information directly from the market.