Chapter 2: Market Research

Types of Market Research

Just as an artist uses various brushes for different strokes, businesses employ different types of market research depending on their goals. Whether it's understanding consumer preferences or gauging the success of an ad campaign, there's a research type tailored for the task.

Primary Research

Primary research involves collecting new data directly from sources. For example, a brand like Jones Soda may want to introduce a new drink flavor. To this end, they might set up taste-test stations in select locations and ask visitors for their feedback. This firsthand data, specific to their objective, is primary research.

Subtypes:

• Surveys & Questionnaires: For example, Toyota might email a feedback survey to recent car buyers.

• Interviews: One-on-one interactions.  This is how Zoom might seek feedback from corporate clients on software features.

• Focus Groups: Small group discussions; think of Oreo testing potential new cookie flavors with select groups of consumers.

• Observations: Ever notice someone at a mall noting shopper behaviors? That's observational research in action.

Secondary Research

Instead of collecting fresh data, secondary research involves examining previously gathered information. When In & Out wants to understand global quick service consumption trends, they might look at industry reports, articles, or market analyses already available.

Subtypes:

• Internal Sources: Sales data, customer feedback, or past marketing campaign results within a company.

• External Sources: Industry reports, news articles, and academic publications. For instance, Adidas might examine athletic wear industry reports to identify broader trends.

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Quantitative Research

This focuses on numbers and statistical analysis. If Stacy Adams wanted to understand how many consumers prefer laced shoes over slip-ons, they'd use quantitative methods to get precise data.

Subtypes:

• Structured Surveys: Using scales (e.g., 1-10) to gauge consumer preferences.

• Experiments: Offering two different product prices and comparing sales numbers.

Qualitative Research

It's about exploring deeper insights, feelings, motivations, and reasons. If Disney wanted to grasp viewers' emotional connection with a new show, they'd employ qualitative methods.

Subtypes:

• Unstructured Interviews: Open-ended discussions, perhaps how Pixar gathers feedback after early movie screenings.

• Focus Groups: Discussing the appeal and improvements of a product, like Adobe getting insights into a new software interface.

Competitive Analysis

This involves studying competitors to understand their strategies, strengths, and weaknesses. When Apple designs a new smartphone, it will surely keep a close eye on what companies like Samsung or Google are up to.

Experimental Research

Businesses test variables in a controlled environment to understand cause and effect. For example, a company like Etsy might tweak the design layout for a small group of users to see if it affects their shopping behavior.

In essence, market research is a toolkit, and the type of research chosen is like selecting the right tool for the job. By understanding and mastering these various research methods, businesses can paint a clearer picture of the market, consumers, and their own position within this vast landscape.