Market Research Strategies
Running a successful business requires tailoring goods and services to meet the demands of consumers. Market research is the gathering of information pertaining to consumer preferences and analyzing the data to determine which products and services are viable. Businesses use a variety of common strategies to conduct market research.
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Questionnaires
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Questionnaires consist of lists of questions relevant to the products or services a business intends to offer. According to the U.S. Small Business Administration, "the most common research instrument is the questionnaire." For instance, a business that plans to launch a new type of cookie might ask survey respondents about how often they purchase cookies, where they buy them, and about their favorite brand or type of cookie. Questionnaires can be administered with paper forms filled out with a pen or pencil, over the phone or online. The terms questionnaire and survey are often used synonymously.
Focus Groups
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Focus groups are in-depth market research sessions where a group of potential customers tests a product or service and provides feedback. Focus groups can allow business managers to get more-detailed opinions about products prior to putting them on the market. Often, focus groups are conducted after initial market research such as surveys.
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Interviews
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Interviews are another way to conduct market research that may be more in-depth than a typical questionnaire. Interviews do not necessarily have preset questions, and respondents answer in whatever way they wish rather than selecting an answer from a preset list. Interviews can be in person or over the phone and do not require that the interviewee be provided with a product or service to test.
Secondary Research
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Secondary research is information gathering and analysis that does not involve generating new data. Secondary research involves looking through relevant research conducted by others, such as government organizations, educational institutions or other businesses to help inform decisions. Secondary research can be beneficial for determining competing companies and products in a market and for gathering data about market conditions. Many businesseses employ both secondary research and primary research (collecting their own data) as a part of their overall market research strategy.
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