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Market Research

What is market research?

Gathering, recording and analysing data and information about customers, competitors and the market.

Primary research data is information gathered for a particular product or hypothesis.

When information does not exist/is not accessible, and needs to be specifically collected.

For example:Surveys, focus groups, research panels and researchcommunities.

Secondary research data is existing, published data and research.

Often more cost-effective than primary research and the Internet opens a wealth of resources.

Quantitative research is numerical data to demonstrate statistically significant outcomes.

Qualitative research:

•Exploratory

•Identifies potential hypotheses

•Seeks to find out potential consumer perceptions and feelings

The Internet was originally a tool for academics to share information.

Now used by consumers to:

•Research products and companies•Gather information•Compare pricing

So now it is a useful tool for primary and secondary research.

AND

It can be used to gather both qualitative and quantitative data.

It can be used to easily and accurately conduct surveys.

Consumers’ online habits can be recorded through web searches, online surveys, online reputation management tools, etc.

Online tools and research methods = broader, faster and more detailed forms of information gathering.

The Internet vs. traditional market research

Internet market research:

•Is cost-effective•Targets a large number of people

But it can lead to sample error if not carefully planned and managed.

Image Credit: Tim Davies

Data is only meaningful if it is representative.

So consider:

•The nature of the study•The validity and legitimacy•Goals and expectations

Use web analytics tools and online reputation management (ORM) in online market research.

They play a big role in providing data.

Research Methodology

•Establish goals•Determine your sample•Choose data collection method•Collect data•Analyse results•Produce reports

Primary and secondary research

Secondary research should:

•Precede primary research•Uses data that already exist for analysis•Be considered in solving the problem

Use:

•Web analytics data, customer communications data, social networks etc.•Search tools - www.google.com and advanced tools - http://www.google.co.za/advanced_search?hl=en•Research publications online

Primary research can be qualitative or quantitative:

•Explore a market•Develop the hypotheses or research questions (qualitative at this stage)

e.g. online research communities:

•Can be used to identify unmet customer needs

•And brainstorm possible solutions

Then use quantitative research to investigate further!

There are numerous data collection methods:

Focus groups; interviews; research communities etc.

Technology and Online surveys:

•Data captured immediately•Analysis is quick•And they’re cost effective!

Technology means they can also be more user-friendly.

Types of Questions.

Open ended:

What features would you like to see on the website for the eMarketing textbook?

Closed-ended:

Do you use the eMarketing textbook website? Choose one that applies.

YesNo

Ranked or ordinal questions:

Rate the features of the eMarketing textbook website, where 1 is the most useful and 4 is the least useful.

BlogCase studiesFree downloadsAdditional resources

Matrix and rating types:

They can be balanced or unbalanced – determining whether someone can express a neutral opinion or not.

Offer incentives to get a response.

Assure respondents of the time commitment, and privacy implications.

7 steps to conducting surveys.

1. Establish goals2. Determine sample3. Choose methodology4. Create questionnaire5. Pre-test6. Gather data7. Analyse

Use free tools:

e.g. 4Q Surveys - http://www.4qsurvey.com/

What about sample error?

Design is crucial - test and run pilots.

Ensure respondents don’t become desensitised.

Limit respondents to being interviewed once every six months to stop incentives affecting data.

Also consider who you are targeting.What is the best way to reach them?

Case Study

www.brandseye.com

Online reputation management service, BrandsEye, needed to revamp its interface to suit its evolving user’s needs.

In 2010, they sought to find out exactly what the market wanted from the product.

To gather data they used:

•Focus groups•Personal, one-on-one interviews•Online conversation monitoring•Active online engagement

They gathered:

•Qualitative data from the users directly•Quantitative data from online mentions (using the BrandsEye tool itself)

So they could:

•Direct the business development•Prioritise software changes•Direct resource allocation

BrandsEye approached key clients to gauge reaction and get input, and plotted results on a persona matrix.

They created a hypothesis, and continually tested it.

Users were able to critique BrandsEye features while it was still in Beta.

This allowed BrandsEye to get over 200 pieces of functional feedback on the system.

They solved upward of 77% of these items in the first week.

When BrandsEye Version 2 launched in early February 2011, it received more than 700 tweets in three days and more than 20 press articles in the same time.

Further Reading?

www.quirk.biz/emarketingtextbook