Welcome to an exploration of the fundamental world of market research. In this post, we’ll delve into the very essence of market research, shedding light on its scope, the diverse approaches it encompasses, the inherent structure that guides it, and the art of its organization.

Within the confines of this article, we shall delve into addressing the subsequent inquiries:

What is the scope of market research?

• What is the scope of market research?
• What are the approaches to implementing market research?
• What is the structure of market research?
• How will the market research be organized?

In consumer and business-to-business markets, the decisions that research is guiding tend to be similar. Each of these decisions requires information from the market to reduce business risk.

• To reduce business risk
• To measure the effectiveness of promotions
• To assess customer satisfaction and loyalty
• To show the market size and shares of suppliers
• To measure use and attitudes toward products
• To determine optimum pricing strategies and brand influence
• To determine effective segmentation strategies.
• To rest a product/concept

What are the approaches to implementing market research?

There are two important schools in market research – qualitative and quantitative. Qualitative research is often used as a precursor to a larger study and it provides diagnostic data and insights using focus groups and depth interviews. Qualitative information is rather harder to define but the emphasis is on ‘understanding’ rather than simple measurement.

Quantitative research is concerned with larger numbers of interviews, at least 200 and sometimes 1,000 or more. Such quantitative data is required to some level of accuracy (though not in all cases to very high levels) and the methods used must be capable of achieving this. These numbers provide measures of behaviour and attitudes that represent the larger market from which the sample has been drawn.

Much qualitative research is concerned with empathizing with the consumer and establishing the meanings he or she attaches to products, brands and other marketing objects. Another focus is motivation. For example, why does one product rather than another meet consumer needs and what are these needs that are being met? Qualitative research is conducted amongst a sample, but in this case, usually a small one, since there is no attempt to extrapolate to the total population.

Quantitative and qualitative research are often complementary, and in a research design, both may feature. The qualitative element frequently takes place at the front end of the study, exploring values that need measuring in the subsequent quantitative phase.

What is the structure of market research?

The market research process begins with a definition of the problem – the brief. This is prepared by the sponsor of the research and it is converted into a proposal by the market researchers. The proposal shows the design of the study, which often involves input from desk research and fieldwork made up of qualitative and quantitative methods. Analysis and reporting conclude the project.

The starting point of any market research project is to have a brief – background to the problem or the opportunity, and a statement of what information is required in order to make a decision. It is especially true in market research that a problem well defined is a problem half solved, as this leads naturally to the definition of the objectives of the survey – what the work is meant to achieve. If this is not done adequately – too often it is not – the effort put into the work will be wasted. Objectives are a statement of what the research will be used for and what specific items of information are being sought.

A plan of how these objectives are to be met and how the information is to be obtained is then required. This is the proposal or research design, and it will cover the use of both qualitative and quantitative methods, detailing who will be interviewed, what number and whether this will be face-to-face, by telephone or online. The resources needed (especially the money) and the timescale are also important at this planning stage.

Fieldwork or data collection is the visible part of market research. Fieldwork normally involves interviewing and completing a questionnaire for each individual or organization in the sample. This may be numbered in tens, hundreds or even thousands. The individual questionnaires and responses are usually of little or no interest; what is required is an aggregation of the whole sample or perhaps groupings within that sample. This larger picture is obtained by analysing the data using proprietary software that allows cross-cuts of the data. Once an analysis and aggregation of the data have been produced, this needs interpreting and presenting in a meaningful way so that the decision-maker can act on the results. This is the reporting stage of the process and may involve the researcher making recommendations.

How will the market research be organized?

However, most market research requires fieldwork of some kind or another, and logistics, budgets and the need to meet timetables require some division of labour and a team approach. Fieldwork options are an important part of the market research process, and we devote a good deal of space to them in this book.

The tasks covered in the outline of the market research process can be rather crudely divided between ‘thinking’ and ‘doing’. Thinking-type tasks include planning the research, selecting an appropriate research design, developing questionnaires and similar tools, deciding how the data should be analysed and interpreted, and communicating the results. These tasks require professional-level skills and a background in the body of theory underpinning market research. However, unlike the doing parts of the process, a large team is not usually required for these parts of the process; in many projects, the work can be handled by one person.

The two main ‘doing’ parts of research are data collection and data analysis. Almost every aspect of the data collection and data analysis needs professional help. Depth research using focus groups needs someone to recruit participants and a place to hold the event where there are recording facilities and a one-way mirror. Running the focus groups needs a moderator skilled in managing the participants and getting them to open up.

Possibly one consequence of the organizational split between market research suppliers (agencies) and clients (the companies making the marketing decisions) is that market research does not realize its full potential in contributing to decision-making. The researcher, however experienced and skilled, is often remote and a stranger to those making decisions. He or she is also insulated from other factors that may need to be taken into account in decision-making – production capabilities, finance and wider corporate goals. In addition, rightly or wrongly, market researchers are often seen as backroom people: valuable in a narrow field but not capable of taking the broader view or contributing to long-term strategy. This is a role that is changing as researchers have the advantage of drawing on experience in the many markets they examine and because they now have access to a much more powerful arsenal of statistical tools that aid their interpretation.

Most market research programmes involve a good deal of labour in the interviewing and analysis. For this reason, large surveys have to be carried out by specialist market research companies organized to carry out the many tasks.