Marketing Research Process

The Market Research Process

A systematic process for informing business decisions is The Market Research Process. The research process goes through 6 steps that are described below.

Define the Objective & Your “Problem”

The most necessary step in the market research process is defining the objectives and goals of the project. This is about understanding the root question which needs to be informed by market research. There is presence of a key business problem as well as an opportunity which needs to be acted upon, but there is a lack of data and information to make that decision comfortably. The main task of a market researcher is to inform that decision with solid data. Examples of “business problems” can be “How should we price this new product?” or “Which features should we focus more?”

By understanding the business problem more clearly, we’ll be able to keep our research focused as well as effective.Most of the marketing research effort is doomed from the beginning because the problem was improperly defined. The market research process begins with the identification “of a problem faced by the company. The clear-cut statement of the problem might not be possible at the very outset of research process because usually, only the symptoms of the problems are apparent at that stage. After some explanatory research, clear definition of the problem is of crucial importance in marketing research as such research is a costly process that involves time, energy and money.

Determine Your “Research Design”

Now that we know our research object, it is time to plan out the kinds of research which will best obtain the required data. Think of the “research design” as our detailed plan of attack. In this step, we will first determine our market research method (will it be a focus group survey, etc.?). We will also think through specifics about identifying and choosing our sample (who are we going after? where will we find them? how will we have to incentivize them? etc.). This is also the time to plan where we will conduct our research (in-person, telephone, mail, the internet, etc.). Once again, remember to keep the end goal in mind–what will our final report look like? On the basis of that, we’ll be able to identify the kinds of data analysis we’ll be conducting that dictates the structure of questions we’ll be asking.

The choice of research instrument will be based on the nature of the data that we are trying to gather. There are three classifications to consider:

Exploratory Research

This research is used if the topic is not properly defined or understood, if hypothesis is not well defined, and if knowledge of the topic is vague. Exploratory Research will help you to achieve broad insights, narrow your focus, and learn the basics necessary to go deeper. Common exploratory market research methods consist secondary research, focus groups, and interviews. This research is a qualitative form of research.

Descriptive Research

Quantitative descriptive research is conducted if your research objective calls for more detailed data on a particular topic. The main objective of this form of market research is to measure particular topics of interest, usually in a quantitative way. Survey is one of the most common research instrument for descriptive research.

Causal Research

Causal research is the most specific type of research that usually comes in the form of a field test or experiment. In this research, you are trying to determine a causal relationship between variables. For example, does the music you play in your restaurant increase dessert sales (i.e. is there any causal relationship between music and sales?).

Design & Prepare Your “Research Instrument”

In this step of the market research process, it’s time to design your research tool. If a survey is the best tool (as determined in step 2), you will begin by writing your questions and designing your questionnaire. When a focus group is your instrument of choice, you’ll begin preparing questions and materials for the moderator. You catch the idea. This is the part of the process where you begin to execute your plan.

By the way, step should be to test your survey instrument with a small group prior to wide deployment. Take your sample data and get it into a spreadsheet; are there any problems with the structure of data? This will help you to catch potential problems early, and there are always problems.

Collect Your Data

This is meat and potatoes of the project; the time when you are administering your survey, conducting your interviews, running your focus groups, implementing your field test, etc. All the answers, choices, and observations are all being gathered and recorded, normally in spreadsheet form. Each chunk of information is precious and will be part of the best conclusions you will soon draw.

Analyze Your Data

Step 4 (Data collection) has been drawn to a close and you have heaps of raw data sitting in your lap. If it’s on scraps of paper, you’ll probably have to get it in spreadsheet form for further evaluation and analysis. If it’s already present in spreadsheet form, it’s time to make sure that you’ve got it structured correctly. Once that’s all done, the fun starts. Run summaries with the help of tools provided in your software package (typically Excel Minitab SPSS etc.), build graphs and tables, segment your results with groups which make sense (i.e. age, gender, etc.), and look for the main trends in your data. Start to formulate the story you will communicate.

Visualize Your Data and Communicate Results

You’ve spent hours pouring through your raw data, building most useful summary tables, charts, d graphs. Now it’s time to compile the most meaningful take- a ways into a digestible presentation or report . The best way to present the data is to start with the research goals and objectives and business problem that were identified in step 1. Restate those business questions, and then present your recommendations on the basis of the data, to address those issues.

References:

Kotler, P., & Armstrong, G. (2013).Principles of Marketing.Chennai: Pearson India Education Services Pvt Ltd.

http://www.mymarketresearchmethods.com/the-market-research-process-6-steps-to-success/