Trying to figure out market research examples? Wonder what market research for small business is all about? Well, let’s go through an outline example of mini marketing research for small businesses.
This report tells you about the importance of market research, the types of market research methods, example of market research methods, market research methods, aspects to consider while using market research. It also covers the uses of market research, advantages of doing market research and other related issues. Now let’s get started with the mini marketing research example.
One-on-One Interviews
One-on-one interviews are conducted in a similar manner to focus groups, but with one person. One-on-one interviews go a step beyond typical personal interviews. Company managers use these interviews to watch someone actually use their product.
For example, a computer software firm may want to test a new program, so they set up a computer and watch as individuals use the software. Like focus groups, managers observe behind one-way mirrors. Moderators then sit in the room with each person and ask them questions, including how they like the software, or how easy it is to use. Companies then determine whether they need to make changes to the software, based on actual consumer usage.
Questionnaires
Some companies choose to perform market research by sending questionnaires to their existing customers or users who have shown interest in their product or service. A company may ask the customer or person to fill out a survey while in the store or they may send out a survey via mail or email. Examples of questions that a questionnaire may ask include:
- What benefits do you get from this product?
- How does this product compare to other products like it that you’ve used?
- What would you change about this product?
- What would make you a perfect company or brand?
- What is your primary method of communication (for future questionnaires or marketing efforts)?
- What made you purchase this product from our company?
- What features are the most valuable to you?
- Where do you typically do your shopping?
- What income range are you in?
- How old you are?
- What gender do you identify with?
Conducting Phone Surveys
Companies use phone surveys to further validate information obtained from focus groups and one-on-one interviews. Marketers conduct phone surveys among higher numbers of consumers and customers. Consequently, data obtained from the higher number of phone surveys are more indicative of what the average consumer thinks about a particular product or service.
For example, a bank may conduct 300 phone surveys to measure how satisfied customers are with its customer service. Marketers would develop a questionnaire from which to ask the questions. This may include key measurable elements like friendliness, timeliness and accuracy in the questionnaire, and then ask customers to rate those elements on a scale of 1 to 10, with 10 being the highest rating. The bank may ask customers to elaborate on their responses, which the bank manager could then use to make improvements in customer service.
Observation
Watching how customers use your products or services is a quick way to spot potential problems, such as how difficult it is for customers to navigate your online store. Observation spans a huge range of applications – from browsing habits on a website to watching the flow of traffic into and out of a car park.
How does observation work?
Observation is a type of qualitative market research, where you gather insights and information by watching people go through a series of activities. Observation is usually hidden – for example using online customer monitoring software such as LuckyOrange or through security cameras – though some might be overt, such as walking with a customer around a store. They don’t have to take place in special rooms or labs; observing customers in shops, restaurants or even out-and-about are all valid approaches.
Advantages of observation – While you always need permission and full consent from a subject, if you’re able to watch them covertly subjects often behave more naturally and show their true actions, rather than their ‘ideal selves’ that they typically show to strangers.
Disadvantages of observation – Observation is time-consuming and expensive. Researchers have little control over the situations and environments typically used in observational research, and sometimes the act of observing can bias results or influence the situation. Someone who knows they’re being observed may act less naturally.
Using Test Marketing
Companies often take marketing research one step further with test marketing. For example, the restaurant company may actually roll its chicken meal out into five of its 10 local restaurants, advertising the meal on local television and radio and through coupon magazine ads. Corporate marketing managers may then track sales and profits to validate the success of the new meal. The restaurant would then know if its marketing research was an accurate indicator of success.
Testing
Testing focuses on learning about people’s experiences. Often used in later stages of product development, it’s a chance for potential customers to test out your product or service. It can be used to ensure a product is fit for market – such as being robust enough when handled – to getting feedback on how a product works.
Any time that your customers try a new product or service is technically a test – for example, a restaurant chain may place a new dish on the menu, advertising the dish with discounts and money-off coupons. Sales of the new dish can then be tracked to validate its success, and feedback sought from customers as to whether they liked it.
Advantages of testing – Testing can result in specific feedback that can help hone a product. By letting customers test a product, any rough edges can be refined before rolling it out on a larger scale. Testing also puts the product in a real-world environment, which can throw up usability issues that otherwise wouldn’t have been spotted.
Disadvantages of testing – It can sometimes be expensive and time-consuming, and some companies can often overlook this stage because it happens quite far into the development cycle.
The Use of Focus Groups
Focus groups are usually conducted at focus group facilities. These facilities have one-way mirrors so managers can listen to consumers’ feedback about their products and services. A moderator, or special interviewer, usually runs the focus group. She develops a discussion guide of five to 10 questions related to the product. She then asks participants various questions about the product. The ideal size for a focus group is six to 10 people.
A moderator may speak to customers about a small restaurant’s new chicken sandwich meal. She may ask them if they like the idea of a new chicken sandwich, how much they would pay for it and whether or not they would purchase it. Companies often use focus groups to narrow several versions of a product down to the best offering.
Conclusion:
These days everyone needs a market research plan. If you want to take the guess work out of starting your business, you need an understanding of how to best target your small business. While deciding on your focus, it’s also important to analyze the competition in your region. A good way to assess your competitors is by doing some local marketing research.