4 Market Research Tools that Really Work

Mar 27, 2019

4 min read

market research methods

It is a capital mistake to theorise before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.” – Sherlock Holmes

In the business world, information is gold. It can make your business grow, and it can even show why you are not doing as well as you expected. Every decision you make, as an entrepreneur, must be backed with information. That information must be correct, and thoroughly analysed. Gathering information is done by conducting market research.

How do you perform a market research?

Market research shows data about competitors, customer behaviours and needs, market trends, customer satisfaction, reviews on products and services, and so much more. Businesses learn from that data, and quickly adapt to current trends, so their companies continue to thrive. In essence, there are two types of market research – primary and secondary market research.

Primary Market Research

Usually, the internal marketing department conducts primary market research. Also, if a company does not have a research department, research can be outsourced to a third-party. Primary market research collects data from focus groups, field tests, observations, and customer interviews. It is based on a methodology, that only shows 1% false results. There are several primary market research methods available to the business community.

Focus Groups

This method generally is conducted in a group with a moderator who asks previously scripted questions and discusses related topics with the participants. Typically, focus groups are located on neutral grounds and last around two hours.

Interviews

Like the focus group method, the interview method, also involves questioning people, but without a script. Meetings last around an hour and generally all conversations are recorded, so that companies can also use it in future analysis.

The interview research method provides more information than surveys, but it shows results that do not represent the real situation on how customers see your business. However, it still gives customer behaviour data and it is an excellent way to find issues related to the products and services you offer.

Method by Observing

To find out the actual behaviour of your customers, and not rely only on interviews, observation is the way to go! By capturing the actions of your consumers with videos you can gather more precise data on how they use your product and what they like and dislike.

We all know that YouTube has tons of videos reviewing various products and services. Encourage your customers if they love your product to show it off on YouTube or Facebook. There is no better way to advertise your products than video reviews!

Field Surveys

When placing a new product, or offering a new service, you want information on whether your product has quality or not. Thanks to surveys, customers can provide their opinions about your product/service, and most importantly say where you can be more innovative and improve. What better way to use the internet for your advantage than by engaging more with your customers on social media and gathering feedback about your business!

Secondary Market Research

The secondary market research means that you use already existing data from government research, or other sources that offer it for free or a fee. Even though it can be useful, it is not very practical, because as a small business you require real data that matches current market trends.

Conclusion

“The only downside of primary research is that it can be too expensive. One market research can cost you like a brand new equipment! This may be half of your budget! However, if you want to succeed and, lead your business in the right direction, primary market research is a must.”

conclusion

“Research is creating new knowledge.” – Neil Armstrong

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