Market Research

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Market Research Services


Market research definition – what is market research?

Market research primarily collects qualitative data in a predetermined quantity and explicitly (focus), limited by time and (potential) market/customer groups, with outcomes depending on emotions, value judgments, and human interaction and interpretation opinions.

Market research focuses on the influencing effects of marketing instruments on the behaviour of a particular market and target group. Market research aims to obtain information and insights that can influence strategic choices (decision-making) regarding company policy and communication policy.

The collection of qualitative data is done correctly and mainly in market research. A method that continues from a predetermined quantity and explicitly (focus), limited by time and (potential) market/customer groups. The outcomes depend on emotions, value judgments, and human interaction and interpretation opinions. Market research reveals to what extent prospects and customers appreciate a company and products/services and to what extent the needs are met.

Market research is marketing and, in particular, for development plans of markets and products and services. Reasons to do market research is because the results support strategy development and business operations, such as:
to get an accurate picture of the company in the market, by making a comparison with other providers (competitors)
to define attractive customers and market segments/locations
obtaining the image of the company, range, products/services, etc.
identification of wants and needs.
determining the size and attractiveness of (potential) markets.
determining value judgments regarding the attractiveness of (new) products/services.
testing marketing promotions and messages for effectiveness.
gauge possible marketing channels.
checking the effective use of the various marketing instruments in the future.
support for feasibility studies.
determining customer satisfaction.


Market research methods

About market research methods, these fall into 8 main groups
primary market research
Data which comes from direct contacts / primary sources, concerns either quantitative or qualitative research
secondary market research
Generally accessible, public external information; publications, government, media and the internet, but also commercial sources that release specific data for a fee
quantitative research
These are static data, figures from interviews, surveys, focus groups, rating scales, observations.
qualitative market research
Answers to exploratory and open questions, answers that can also arise from interviews, surveys, focus groups, rating scales, observations
exploratory market research (qualitative research). Gaining knowledge of the problem as some basic knowledge is available, but there is a need for further study of the problem. Exploratory market research will determine which factors are most important, gain insight to formulate the concept better and eliminate impractical ideas.
descriptive market research (quantitative research)
Testing the hypothesis to obtain accuracy and correctly formulated answers (5W questions) Focused on measuring the frequency and similarities in the responses
predictive market research
To estimate the stand-alone determining market variables.
causal market research
The goal is to determine the relationship between cause and effect, for the possible mutual variables are tested to predict the consequences of these mutual changes (mutual influence). In this often experiments are used to achieve the data.


Market research process steps
(11 steps)

1. Formulating a problem definition

Formulating the problem definition for market research involves determining the scope of the market research. First of all, the following should be made concrete concerning market research;
the topic or subjects, what to research
main question and derived questions
the need, why market research
kind of market research, the eight main group mentioned above
the importance of the research results
intended goals (f.e. decision-making, strategy, marketing instruments, etc.)
expectations, intended and expected outcomes
the possible strategic intentions
assumptions
limits and restrictions
historical data and experience (history of the problem)
for whom, the stakeholders of the results
method of final reporting
– quantitative analysis – numerical processing, statistics, formulas
– qualitative analysis – texts, avoid duplication
acceptance of the results (approval of research and report)

Then this concept of the scope needs to be translated into a powerful and concise problem definition of 1 or a few sentences. This must include;
concrete tasks
ambition
focus on the end-result
This formulation must be approved by the management before step 2 can be started.


2. Determining required information/sources

Step 2 is to define what information is required to solve the problem and where to find all this information.
This concerns a structured approach to the search process for information in an overview in which is stated
the segmentation, splitting up the market or customers into separate parts (target groups, niches or areas of work, or subdivisions such as by age, gender, profession, education or place of residence)
the internal information, available internal sources and possible support (primary data; collected directly)
naming external sources of information to be consulted (secondary data; collected by others)


3. Collecting data through desk research

The information requirement has now been determined, and desk research can start.

First, the data that have already proved their worth in the past is assessed, and it will be examined whether they are still of any value.
Subsequently, it is necessary to obtain and arrange the so-called secondary data from other sources within the company, other departments and general public data such as (statistical) data from trade associations, chamber of commerce, planning bureaus, government organizations, publications, websites (competitors), etc.

In desk research, it is important to determine the applicability of the available and obtained data, as others have collected these for different purposes.


4. Determining the need for additional information

Now the desk research with a first ‘exploration and ranking’ has been done, it should be assessed according to;
relevance and applicability
integrality
insufficient and unanswered questions

Ultimately, it will have to be concluded whether the acquisition of additional data is desirable, required or required. If so, these will still be available through field research.


5. Field research decision

The collection of additional, specific information for market research, unlike the collection of general secondary data, is usually not available for free or for a small fee.
Therefore, a trade-off will have to be made between the costs of extensive market research with field research and the importance of the data that field research must provide.

To avoid conflicts, one must take into account the applicable privacy laws when conducting detailed market research.


6. Formulate market research design

Phase 6 starts with making the briefing so that the further activities lead to the desired assignment execution. Such a briefing should include the following
context and results of the preceding phases
unanswered and additional questions
any preference for a particular study design and sample size.
schedule and deadline for report delivery
available budget.

When formulating a market research design, the following should also be taken into account:
formulating market research groups / target groups (who / customers, what / needs, how / instruments)
the sample size per target group
possible criteria for expanding or limiting sample size
type of market research (exploratory / qualitative research, descriptive / quantitative research, explanatory / comparison research)
method of data collection (methods) for research data
– observation: observing the behaviour of the market research group.
– survey: ask questions to the market research group in writing, by telephone, in person or online.
– experiment: make changes in the environment of a market research group and every
data description of the data that will be analyzed.
analysis method: the method to analyze the data concerned (what and how to measure, and the measurement levels, benchmarks)
validation: precautions to be taken to guarantee the quality and correct answers (data).

All this is quite extensive, and to keep structure and overview, it is recommended to work this out in a market research project plan before starting to collect the data.


7. Data collection

Keep focus and keep control, as this phase in the research process costs the most time and money. In practice, it is tempting to involve adjacent aspects and expand the questions. However, this will not be desirable in the context of the assignment and the budget. In short, the market research project plan and questions script should be the guiding principle.


8. Data processing

The market researcher must now first check and validate the collected data for correctness. Validity is the degree to which one measure from what is intended to gauge to
is the data obtained correctly interpreted (is the measurement method suitable for the research question)?
have the correct research question been asked?

Measurements should already be taken in the process to safeguard the quality;
control measurements to be able to verify part of the measurements,
consider whether the research results have predictive value,
compare the research results with those from previous studies or comparable studies,
limiting the number of non-responses and the associated negative effects on the research


9. Analysis of the data

The analysis must provide answers to the questions from the problem definition. The first instance must be analyzed whether clarifying conclusions can be derived from the processed data. A positive confirmation of this also contributes to the image of the final report.
a. How can the data be presented in a more meaningful way?
identifying and organizing trends
separating the main and side issues
b. Maintain objectivity!
bias is a threat
stay critical, don’t be tempted to be “too good to be true.”
check sample size and statistical reliability
c. It is about reliability and usability of data, not about data analysis
use logic and common sense
focus on the outcomes


10. From processing to reporting

When analyzing and processing data, there are differences between qualitative and quantitative market research.

In quantitative research, the numerical data is usually entered and analyzed with statistical computer programs. Tables and graphs can be made with such programs.

In qualitative research, the information is processed into a text report, a summary or a presentation.
Based on a text (qualitative research) or tables, graphs, models and techniques (quantitative research), conclusions are drawn, and recommendations are made based on this.

The content and design of the report and presentation depend on the previously established agreements.


11. Interpretation, conclusions and recommendations

The analysis results processed in the report can be interpreted by all those involved and the decision-makers.
When all factors have been assessed, conclusions can be drawn from them. This will include the useful answers from the analysis, which will be turned into recommendations.

After that, the management can ultimately determine the conclusions and process them by making adjustments to
the strategic policy
the marketing plan
the marketing instruments (tactical marketing tools)

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