Market Research- Rishabh Patre

Market research is the process for listening and learning, with the goal of making better decisions.

Marketing research methods

Formal

Concept Testing

Conjoint analysis

Customer price sensitivity

Informal

Lead users

Empathetic design

Immersion

Formally, Market research refers to the formal collection, analysis, and reporting of external data that a company finds relevant to its business.

Formal Market Research

Direct observation

• Observe Customers• What are they

buying?• How they use it?

Experimentation

• Introduce products at different prices or sizes

• Customer response is recorded

Gathering and analysis of purchase

data

• Use of computer tech to keep tab on customer preferences and behaviour

Survey Research

• Surveying people and extrapolating the outcomes to the overall population

Focus groups

• Views of small group of invitees discussing together in presence of a trained moderator

Interviewing dissatisfied customers

• Learning from dissatisfied and lapsed customers

Market Research – A 7 Step Process

Define the problem

Determine type of information needed

Select research tools

Design the tool to fit the situation

Apply it

Analyse

Communicate the findings

Formal Methods

• Evaluate customer response on a concept by asking questions

• Concept testing can help us understand the extent to which people in the target market value different attributes. And once we know it, we can fine tune the design and execution of the idea

• LIMITATIONS – Negative response don’t tell you the want of customers

Conjoint analysis

Conjoint analysis is a popular marketing research technique that marketers use to determine what features a new product should have and how it should be priced. Conjoint analysis became popular because it was a far less expensive and more flexible way to address these issues than concept testing.

http://www.sawtoothsoftware.com/download/techpap/undca15.pdf

Go through this small example for clarity between the difference of concept testing and conjoint analysis -

Understanding customer price sensitivity

Understanding the relationship between price levels and customer buying behaviour is an important piece of the larger puzzle that market planners must understand.

% change in quantity / % change in price = Price Elasticity of demand

Informal Methods

• Lead users are companies and individuals whose needs are far ahead of market trends

• By observing them, marketers can develop ideas for innovative new products and services

Learning from lead

users

• It gives organisation and opportunity to know how people actually use a product and services

• It involves observing, capturing data, reflecting and analysing, brainstorming and developing solution prototypes

Empathetic design

• Decision makers should directly hear customer wants or complaints rather than looking in research reportsImmersion