Conducting a Market Research
To identify the wants and needs of consumers, entrepreneurs, especially those who own a start-up company, conduct a market research that will also allow them to create innovations and improvements that will make them competitive in the industry.
However, businessmen should know that conducting a market research means they have to spend time and money.
Companies, especially start-ups, conduct a market research to identify the wants and needs of consumers. By doing a research, entrepreneurs can also create a product which reflects the needs of people and make innovations that will make a product or service different from the rest.
According to business consultants, there are two types of information a market researcher can gather: exploratory which involves open-ended questions and specific which is gathered by asking structured and formal questions.
Meanwhile, here is comprehensive definition of the two:
This provides answers to a specific problem and involves unstructured interviews which can solicit lengthy answers from a small group of interviewees.
This involves structured interviews that provide answers to a broader scope. Usually, this type of research is more expensive than exploratory.
Meanwhile, there are three avenues in conducting a market research: telemarketing, direct mail, and personal interview.
Telemarketing (also called as phone survey)
This avenue provides the highest response rate among people. In a phone survey, researchers can also interview many people in different geographical locations and economic class over a short period of time.
And since the cost of phone service is relatively cheap, businessmen will not have to pay a huge sum of money.
The response rate for a direct mail is always low, usually less than 5 percent. However, the advantage of this avenue is that respondents will be given a longer time to think about their answers.
In drafting a direct mail questionnaire, make sure that each question is short and to the point; the questions are directed to specific individuals; and the questionnaire is attached with a cover letter explaining the purpose of the research.
This type of avenue is the most intimate among other market research strategies since interviewers personally ask the respondents on certain topics.
A personal interview has two main types: the group survey and the depth interview.
Group interview, which is mostly used by large companies, usually involves group interviews that are very useful in creating new and innovative ideas. This type of personal interview also allows researchers to know the buying preferences of respondents.
The second type of personal interview is the depth interview which involves one-on-one conversation with the respondents. Depth interviews can be either “focused” in which interviewers ask questions based on a checklist; and “non-directive” in which interviewers encourage people to address certain topics. Because of this arrangement, the respondents lead the interviews.