Primary Market Research

11 Key excerpts on "Primary Market Research"

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  eBook - ePub

  Disciplined Entrepreneurship Workbook

  • Bill Aulet(Author)
  • 2017(Publication Date)
  • Wiley

    (Publisher)

  The entrepreneurship community has lagged behind in incorporating Primary Market Research into startup formation, which is a missed opportunity. Customer-focused companies such as Procter and Gamble and leading product design firms such as IDEO and Continuum Innovation have long practiced Primary Market Research in their user-centered design processes.

  More recently, with terms like Steve Blank’s “customer discovery,” Primary Market Research is becoming less intimidating an idea for entrepreneurs. But Primary Market Research has deep roots, and this chapter explores the depth and breadth of academic and practitioner insights on the topic.

  Primary Market Research feeds into the 24 Steps all along the way and is the fuel that keeps the process going in the right direction.

  Entire books have been written on this topic, so I am going to try to synthesize it down to what entrepreneurs really need to know to be successful. As Dharmesh Shah says, one of the key things you need to do to be successful in a startup is to start. It is right there in the name. So don’t get overwhelmed by the magnitude of this task; just get started.

  Definitions

  • Primary Market Research: When you (or someone you hire) directly interact with the potential customer to gain knowledge specific to your potential new venture. I will often call this “bottom-up” market information. Depending on where you are in the 24 Steps, you may be interacting with the end user or with other individuals within the company, such as the people who make spending decisions (the “economic buyers”), the people who will advocate for the purchase of your product (the “champions”), or others who influence or control the procurement process (collectively, the entire group is called the “Decision-Making Unit,” which I will get into much more detail in Step 12).
  • Secondary Research:

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  The Professional Personal Chef

  The Business of Doing Business as a Personal Chef

  • Candy Wallace, Greg Forte(Authors)
  • 2007(Publication Date)
  • Wiley

    (Publisher)

  84 Chapter 7 ■ Identifying Your Market Key Terms Market Research The act of collecting information about people who buy from you or who might buy from you. Marketing Plan An organized method that puts marketing strategies into action. Demographics A range of physical, social, and economic characteristics that exist within a given group. Primary Marketing Research Gathering information from first- hand sources. Market Research Plan An organized method of collecting and analyzing information from a target audience as part of market research. Quantitative Research A marketing research method that yields data expressed in numerical terms. Qualitative Research A marketing research method yielding data that do not require statistical accuracy. Statistical Analysis The use of mathematical techniques to analyze market information. Survey A method of obtaining primary data for a marketing research project, di- rect mail, or questionnaires. Personal Survey A method of obtaining primary data for a marketing research project using face to face inter- views or questionnaires. Geographical Representation People who live in a physical area, such as a neighborhood, village, or town. Formal Research Formal research is done by con- ducting the research yourself or by gathering primary raw data from other sources. Secondary Research Collecting information using data previously published. Secondary Data Information obtained from pub- lished materials, such as books, magazines, or newspapers. Traits Characteristics of a group of po- tential customers. Response Rate The proportion of people who re- spond to a market research project. Responses Answers to a market research project. Niche Market A small but profitable segment of a larger market. Competitive Advantage Strengths that give the business an advantage over other similar businesses. Conclusion The goal of market research is to identify who your clients are, what they want, where they want it, and when they want it.

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  Disciplined Entrepreneurship

  24 Steps to a Successful Startup, Expanded & Updated

  • Bill Aulet(Author)
  • 2024(Publication Date)
  • Wiley

    (Publisher)

  It is right there in the name. So don’t get overwhelmed by the magnitude of this task; just get started. You will get better the more you do, I promise. Definitions • Primary Market Research (PMR): This is when you directly interact with potential custom- ers to gain knowledge specific to your potential new venture. I will often call this “bottom-up” market information. Depending on where you are in the 24 Steps, you may be interacting with the end user or with other individuals within the company, such as the people who make spending decisions (the “economic buyers”), the people who will advocate for the purchase of your product (the “champions”), or others who influence or control the procurement process (collectively, the entire group is called the “Decision-Making Unit,” about which I will get into much more detail in Step 12). • Secondary Research: This is material you get from sources other than the potential cus- tomer. It is indirect. It is generally not specific to your business. These are the industry and government reports that you can find on the Internet or buy from a source that has already done them. I will refer to this as “top-down” market information. • Qualitative versus Quantitative Research: Qualitative research is exploratory research that helps you generally understand a topic, and is often conducted through a small number of open-ended in-person interviews. Quantitative research uses a much more structured approach and focuses on gathering specific data to prove or disprove the hypotheses created in the qualitative phase. • Ethnographic Research: This is technically defined as the systematic study of people and cultures. In PMR, it turns out that customer psyche plays an important role in decision-making. Sometimes it is even more important than a rational or economic perspective. However, you can’t ask people directly why they do what they do, because people are bad at explaining their habits.

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  Integrated Marketing Communication

  Advertising and Promotion in a Digital World

  • Jerome M. Juska(Author)
  • 2021(Publication Date)
  • Routledge

    (Publisher)

  Collecting and Analyzing Input for Decision-Making

  DOI: 10.4324/9780367443382-3

  Learning Objectives

  1. To understand the value and purpose of marketing research
  2. To describe and apply secondary research methods
  3. To describe and apply primary research methods
  4. To identify consumer insights and purchasing patterns

  Introduction

  There are many questions you need to know about customers and potential buyers. But, the most important ones can be summarized in five short words: who, what, when, where, why? This chapter provides you with the research methods needed to answer all these questions.

  It involves learning about the entire spectrum of marketing research, including consumer, product, and industry research. The chapter also explains the differences between primary and secondary research as well as the interpretations of both quantitative and qualitative research findings. However, what is most important is how to use these different research methods to gather information and complete an analysis for Integrated Marketing Communications (IMC) planning and program development.

  This corresponds to the marketing variables that will be used for the determination of target audiences, brand messages, purchase motivations, media selections, and delivery scheduling.

  Identifying and understanding those individuals or groups most likely to need, want, or use a particular product or service is defined as determining a target audience. The primary and secondary demographic data collected and analyzed from consumer research is strategically applied for both preliminary media and creative planning. Brand messages are also composed using the same information to effectively develop relevant and meaningful content for the target audience, while industry research explains and evaluates purchase motivations. Budgets establish the financial limitations involved with media selection, and industry research influences marketing decisions for the best days, times, and locations for IMC message delivery.

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  Innovate, Fund, Thrive

  The Entrepreneur's Playbook to VC Fundraising in Life Sciences

  • Jean-François Denault, Philippe Tramoy(Authors)
  • 2024(Publication Date)
  • Productivity Press

    (Publisher)

  Chapter 2 Basics of Market Research DOI: 10.4324/9781003381976-2 A few years ago, a client I was working with shared their pitch deck they were bringing to a conference so I could give them some feedback. After reviewing the slides, I was shocked by some of the major issues: market data sets that were over five years old, no market data generated from potential customers, market assumptions that vastly overestimated their market reach and so on. Any solid questions from an investor would have quickly unraveled his presentation. We had to rebuild the presentation to pitch something more realistic. I want to emphasize this because the quality of your presentation is directly related to the quality of the information you have access to. The more precise the information, the more credibility you will convey. Market research is done for two target audiences. First, it is done for the start-up for its own needs: It helps it make optimal decisions and is done when the lack of information could cost the organization more than the cost to acquire the information. Second, market research is done to convince potential partners and investors, to demonstrate the validity of an organization's marketing decisions. In the next few pages, we will be reviewing some basic market research concepts, followed by the basics of the more popular market research techniques (both primary and secondary research). More information on how to plan, execute your market research as well as how to analyze the data you gather is available in one of the other books of this series, The Handbook of Market Research for Life Sciences. 1 Philippe weighs in on the importance of market research: One of the companies I advised was launching a new product in the field of CAR-T therapies. It was essential to do a market analysis in the preparation for the launch of the new treatment and to define the market access strategy in the United States, Canada and Europe

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  Handbook of Marketing Research Methodologies for Hospitality and Tourism

  • Ronald A. Nykiel(Author)
  • 2007(Publication Date)
  • Routledge

    (Publisher)

  PURPOSE Marketing research is the active process of identifying and gathering information pertinent to assisting in the decision-making process. The type of information gathered for analysis is de- pendent upon the purpose of the research. In addition there are a variety of research methodolo- gies and information-gathering processes utilized by market researchers. One definition of marketing research is that it is the “function that links the consumer, customer, and public to the marketer through marketing information.” 1 * However, this is but one of many different defini- tions. Frequently, businesses want to know what the market for a specific product is or service before it can be sold to the consumer. And, frequently the term market research is used to de- scribe the process of identifying and gathering information related to the specific product or ser- vice. In this latter case the focus is on consumer demand, product and/or service supply, the present and future scenarios, and many other factors that can impact the decision process. Again, the type of information gathered for analysis is dependent upon the purpose of the re- search. The purpose of the research can be focused on analyzing customer needs, product/service at- tributes, competitors’ strengths and weaknesses, and even external events likely to impact the product or service offering. The research might focus on the product/service offering in terms of supply and demand, both current and future. The research may focus on actual markets, coun- tries, and cities, seeking to identify opportunities for or threats to an existing product/service offering. Research may focus on new product/service development by identifying market seg- ments or product/service offerings currently not being served. Handbook of Marketing Research Methodologies for Hospitality and Tourism © 2007 by The Haworth Press, Inc.

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  Standing Room Only

  Marketing Insights for Engaging Performing Arts Audiences

  • J. Bernstein(Author)
  • 2017(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  Foundations, such as the Pew Charitable Trust; government agencies, such as the NEA; and trade organizations occasionally undertake basic research on behalf of a number of arts organizations or the field as a whole. The Theatre Communications Group (TCG) publishes an annual report titled Theatre Facts, which provides detailed information on current issues, trends, and comprehensive statistics in the theater industry. Some other secondary sources are cited in this book. Basic research might not have immediate appli- cation to specific management decisions, but can help lay the groundwork for better decisions in the future. Researchers can use internal documents to track the popularity of various pro- grams according to such variables as market segments attending, performance schedules, ticket prices in various seating areas, and the communications media used. They can also analyze how audience response has changed over time to an organization’s various offerings. Secondary data provides a starting point for research and offers the advantages of lower cost and quicker findings. Primary Data Primary data consists of original information gathered for the specific purpose at hand by going out into the field. When planning a research project, the research manager needs to know the full array of methodologies that might be used to solve a particular problem in order to select the process that will best meet man- agement’s decision-making needs. Primary data can actually be collected in three 151 C o n d u c t i n g a n d U s i n g M a r k e t i n g R e s e a r c h broad ways: through exploratory research, which includes observation, individ- ual in-depth interviews, and focus groups; through descriptive research, which includes surveys, conjoint research, and panel studies; and through experimental research. Qualitative Research Methods Qualitative research is exploratory in nature, seeking to identify and clarify issues.

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  Personal Assistance NQF4 SB

  TVET FIRST

  • T Krul, C Esterhuyse, P Atkins, S Paarman A Rasmus(Authors)
  • 2013(Publication Date)
  • Macmillan

    (Publisher)

  Module 6 Segmenting a market and undertaking appropriate marketing measures Overview At the end of this module you will be able to: • conduct market research, collate data and evaluate and present it to a mentor. • segment a buying market for a range of products • compose advertising for a target market and select appropriate media for placement. Unit 6 .1: Conducting market research Market research Collating and analysing information about customers, competitors and the market is known as market research. Market research can help with: • creating a business plan • launching a new product or service • expanding into new markets • learning more about existing and potential customers. There are many questions that can be answered through market research, such as: • Who are the customers? • What are the needs of customers? • What is the right price for a product or service? • How frequently do customers buy a product or service? • What do customers think about a product or service? • Who are the competitors and what do customers think about their products or services? There are two types of research: primary research and secondary research. Primary research is about gathering and recording new information. Secondary research is about using data that is already available to make decisions. collating: gathering or bringing together analysing: carefully examining something in order to understand it better Words & Terms 72 Module 6: Segmenting a market and undertaking appropriate marketing measures 73 Module 6: Segmenting a market and undertaking appropriate marketing measures A customer survey A method that is often used for gathering and recording information about customers is a customer survey. A customer survey is a list of questions that customers need to answer (either in writing or verbally) about the product or service of a business. The reason for conducting a customer survey is to collect customers’ opinions regarding a product or service.

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  Product Development and Management Body of Knowledge

  A Guidebook for Product Innovation Training and Certification

  • Allan Anderson, Chad McAllister, Ernie Harris(Authors)
  • 2024(Publication Date)
  • Wiley

    (Publisher)

  Primary research methods include: • Interviews • Focus groups • Surveys • Concept sorts 6.10.4 Concept Development and Testing During this stage, a more detailed concept description is sought, leading to product design specifications (refer to Chapter 5.3). Customer and other stakeholder input are required to identify the key benefits, attrib- utes, and functionality desired in the product. Primary options for research methods include focus groups, lead-user groups, online discussion forums, customer site visits, surveys, concept testing and concept sorts, sensory testing, recipe formation and testing, and specific multivariate techniques such as conjoint analysis. Secondary research into competitive solutions includes various online sources and intellectual property databases for existing patents and trademarks. More detailed and robust secondary research on market potential and the business case is important to justify the increased cost of development in the next stage. 6.10.5 Prototype Development and Product Use Testing During this stage, the concept takes physical form with possible functionality. Project costs start to rise significantly, and it is increasingly important to make the right decisions regarding product benefits, form, and function. The availability of samples or prototypes that display form and possibly function provides a far better basis for seeking customer feedback than the concept description (words and images) used to describe the product in the previous stage. Demonstration of the prototype during research will certainly add significantly to customer understanding of the product and, in turn, result in more valuable and reliable feedback. At this stage, the accuracy and reliability of information become more and more important.

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  Applied Marketing

  • Daniel Padgett, Andrew Loos(Authors)
  • 2023(Publication Date)
  • Wiley

    (Publisher)

  5.2 Concept Check 1. What are the three Primary Market Research objectives? 2. What types of questions are employed for each objective? 3. What is the difference between qualitative and quantitative market research? 4. What type of research would be most appropriate to answer which types of questions? quantitative research Research that is used by marketers to count, classify, and measure things to answer descriptive marketing questions such as how much, how many, and how often certain things happen. • Clarify • Go Deep • Solicit Opinions • Answer the “Why” • Classify • Measure • Assess Relative Importance • Answer the “What” and “When” Product Development Qualitative Research Quantitative Research + + • • FIGURE 5.5 Qualitative and Quantitative Research Provide Different Levels of Information That Are Essential to Product Development. 100 CHAPTER 5 The Role of Research in Marketing 5.3 Research Implementation LEARNING OBJECTIVE List and describe the common options for data collection and analysis and the relationships between the two. Once the goal and type of research have been decided, the next research decision is to deter- mine how the research program will be conducted. Implementation covers what information is needed, how to collect it, how to analyze it, and what to do with the results. An initial consideration is where to get the necessary information. A second consideration is how to collect the information and how to analyze it. These decisions will be closely tied to the earlier decisions of research goal and type. Data Sources Data can come from one of two sources depending on whether there is data already available that can be used to answer the research question or whether new data will need to be collected. If we need to collect new information because relevant data that we can use to address our research problem isn’t already available, we will need to collect primary data.

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  Marketing (AU), P-eBK

  • Greg Elliott, Sharyn Rundle-Thiele, David Waller, Ingo Bentrott, Siobhan Hatton-Jones, Pete Jeans(Authors)
  • 2020(Publication Date)
  • Wiley

    (Publisher)

  All sorts of information is needed to understand how we can better meet customer, client and user needs and wants. Information is used by organisations (for-profit, government and not-for-profit) to identify and define opportunities and threats; generate, refine and evaluate actions; monitor performance; and improve understanding of our processes, practices, structures and systems. 10 Before starting a research project, it is crucial to know — and be able to communicate — precisely what the purpose of the research is. The thing the research is intended to address is often referred to as the research problem. A poorly defined research problem will lead to research that does not generate the information required to enable the organisation to make decisions to improve performance. By understanding what the end goals are for the organisation commissioning the research and the context in which the problem is situated, researchers can deliver actionable insights that decision makers can implement. Pdf_Folio:67 CHAPTER 3 Market research 67 Usually there will be some trigger that prompts a research project. For example, in response to bleaching of the coral in the Great Barrier Reef, a large program of work funded by the Australian and Queensland governments was undertaken to identify the root causes of coral bleaching. Once the factors contributing to coral bleaching were understood, investment was directed towards factors that were considered preventable. Subsequent investments were focused on reducing the amounts of chemicals reaching our waterways. If you were asked to work on this project your research brief may have focused on understanding the barriers that prevented sugar cane growers from reducing fertiliser application. As a first step, it is important that you properly define what your research project is meant to find out.

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