The market is flooded with information. Browsing through the data overflow, getting a perfect insight, and making the best decision for your business might be difficult. That’s where market research is vital. From surveys to direct interviews and newer tools, market research is the most significant part of your business irrespective of the size. The market research methodologies are numerous and here we will be discussing the most common ones.
Before getting into the methodology details, we will have a look at primary and secondary research alongside the differences between the two.
What is Primary Research?
The process of data collection through direct communication with the customers like surveys, interviews is the primary research. It involves data that isn’t pre-existing and comes directly from the customers. Primary research develops two types of information
Exploratory involves open-ended or straightforward questions to gain lengthy responses from the answerers. On the other hand, specific research addresses a particular issue.
Some popular primary research methods include direct interviews, telephonic interviews, direct mails, or survey papers.
Secondary Research involves the data already existing in the market and the researcher can use it free of cost or at a much lower price. The data comes from various public sources, education sectors, and commercial sectors. Secondary research has a limitation. It might not fit the actual requirement the researcher is looking for.
Also Read: What is Market Research?
Top Five Market Research Methodologies
Now that we have an idea about primary and secondary market research, let’s discuss the best five market research methodologies.
The survey is a primary market research tool, where either open-ended or closed-ended questions are set for the respondents to answer. The people receive the questionnaire either through mail, online or directly from the company’s representative. The closed-ended questions are of different types:
- Multiple choices and two choices
- Rating Scale
- Likert Scale
- Demographic (questions related to the answerer’s age, gender, etc.)
Surveying is an exciting and helpful process because of the wide array of question types. You must be an expert to mix and match the questions to derive the answers you are looking for. The question setup is vital. Your asking pattern must be understandable. Good responses in the survey will help in a better evaluation.
The interview enables the researcher to communicate directly with the potential customer and derive concise results after in-depth analysis. It opens the door to personal communication allowing more space for open-ended questions. However, the interview isn’t free of limitations as it is costly and time-consuming. Moreover, conducting this process involves expertise in allocating the questions in the perfect order. Poor ones will do nothing but bring meaningless results. But if the interviewer is a pro and knows to be conscious of the lead questions, can end up having a successful session for sure.
The qualitative research method where the researcher minutely observes the customer (subject) in a natural setting is observational market research. This process is much like being a silent guest in a room full of people. It is like observing everybody minutely and analyzing afterward. In this research type, subjects are mostly tension-free and behave spontaneously. However, if they are conscious of the observation, their behavior might differ.
For example, during a discount tenure, the researcher can take a look at the customers like how they are reacting to the situation, what they are buying, how much they are willing to spend, and so on. However, the observational research process is time-consuming. It might not always work out in the right direction, as researchers can’t control the environment.
4: Competitor Analysis
One of the most strategic and particular market research forms is competitive analysis. It is not only interesting but allows you to discover innovative perspectives for your product or service. Let’s take an example of a content writing firm. While comparing with the competitor, you can address issues like total content delivered in a month, type of content offered, SEO analysis, search ranking, social media presence, etc. After a thorough analysis of these critical pointers, you can question yourself. Is there anything that your service lacks? If yes, what’s that, and how to solve it? If not, great! Think of how you could make your business more engaging to drive more traffic.
5: Examining the Sales Data
A noteworthy point for market research methodologies is sales data evaluation. The sales data can help reveal the entire picture of the market research insights. If you are pairing it with other market research data, sales data will be significant for the researcher to track the scenario of action and results. Moreover, it is vital to understand the potential customers, their expectations, preferences that even change with time or environment, and buying habits.
Choosing a Market Research Method
Now you know what market research is, what makes it so significant and what are the market research methodologies. But, not every research process will suit you; neither do you need all of those! Yes, it depends on your business, the service it is offering, and the particular issue you have been worrying about for a long time.
I hope you had a nice time reading this blog post and got a better idea about the market research methodologies. See you in the next one where something’s more interesting is coming up!