Market research

Smart research can be a catalyst for change; misguided research can stand in the way of innovation. Market research is the gathering, evaluation, and interpretation of data affecting customer preferences for products, services, and brands. Understanding and revealing new insights about attitudes, awareness, and behavior of prospects and customers often indicate opportunities for future growth. According to Christine Ecklund, President, Christine Ecklund & Associates, “The market research departments of more and more companies are renaming themselves ‘Consumer Insights’ departments as the value added is recognized to be the insight gained from the data, not just the execution of the research.” Research must be appropriately designed and correctly analyzed to ensure findings are accurate and not misleading. Although anyone can access secondary research on the web, research itself does not provide answers. Interpreting data is a skill in itself. There are many proprietary research tools and client intelligence competencies to help global corporations develop brand strategy. Smaller branding firms may partner with market research firms and, in many cases, are provided with existing research reports about customer preferences or marketing segments.

Not everything that counts can be counted, and not everything that can be counted counts.

Albert Einstein

Qualitative research

Qualitative research reveals customers’ perceptions, beliefs, feelings, and motives. Findings are often rich in context and may offer new insights and perspectives about the brand.

Ethnography

Observes customer behavior in everyday life either in a work or home environment. Typically used by designers to gain insight and inspiration. There’s a school of thought that claims that traditional ethnography can only be conducted by professionals who have studied the social sciences.

One-on-one interviews

Individual in-depth interviews with senior management, customers, and thought leaders are ideally conducted face-to-face, but may be conducted on the phone. Information and anecdotes yielded by this method are rich and particularly valuable to the branding process. Focus groups

A fast-paced group discussion about predetermined topics led by a moderator with carefully selected participants who share common characteristics. Focus groups are best used to uncover attitudes, perceptions, needs, prejudices, and ways of using products.

Mystery shopping

Trained mystery shoppers anonymously visit stores, branch banks, and other locations where they pose as customers. They evaluate the shopping experience, salesmanship, professionalism, closing skills, followup, and overall satisfaction. Mystery shoppers follow a list of predefined steps, make mental notes, observe conditions and performance, and produce audit reports that provide objective feedback. Types of research

Primary research Collection of new information designed to fit specific needs.

Secondary research Interpretation and application of existing statistical, demographic, or qualitative data.

Focus groups were originally invented to FOCUS the research, not BE the research. They rarely deliver the consensus-building clarity needed to innovate. Marty Neumeier

The Designful Company

How the research is designed and executed is critical; however, it is the consumer insight gained from research that ultimately drives the brand. Christine Ecklund

President Christine Ecklund & Associates Quantitative research

Quantitative research creates statistically valid market information. The aim is to provide enough data from enough different people to enable companies to predict—with an acceptable range of confidence—what might happen. A large group of people is asked exactly the same questions in precisely the same way. The sample is a microcosm that has the same characteristics of the overall target market. Researchers attempt to project the opinions of a relatively small number of people (the sample) to model the opinions of the entire population.

Online surveys

One of several ways to gather primary research data. This approach uses the internet to gather information from respondents as they sit at their own computers. Typically, potential respondents receive an email inviting them to take a survey, with a link to the survey itself.

Usability testing

Designers and human-factor engineers observe through a two-way mirror in a formal laboratory testing environment. Users are selected carefully, and results are analyzed in depth.

Product testing

Products can be tested “in home” to replicate real life or at a “central location” to get a point-in-time user experience. Whether it is preparing and eating a food product or driving a new vehicle, product testing is critical to the long-term success of a brand.

Competitive intelligence

Many business information database services on the web provide data and information about industries, private and public companies, and their stock activity and management. Some of this information is free and easy to access, while a good deal of it is through subscription. Brokers are also a good source of industry and stock reports, as are press archives.

Eye tracking

Eye movement recorders examine how an individual views packaging, advertisements, signs, shelf displays, or computer screens by tracking eye movements. These devices show when the subject starts to view a picture, the order in which the elements of the image were examined and reexamined, and the amount of viewing time given each element.

Segmentation

Divides consumers and businesses into clustered groups, each with its own special interests, lifestyles, and affinity for particular goods and services. Consumer segments are usually defined by demographic and psychographic information. Demographics are vital statistics, such as age, sex, marital status, ethnicity, family size and composition, education, income, occupation, and housing. Psychographics refer to psychological attributes that describe an individual’s lifestyle or attitudes.

Equity tracking

Monitors ongoing brand health and advertising effectiveness. Most large brands conduct continual in-market equity tracking that includes key brand ratings, brand and advertising awareness, and brand usage trended over time.

Syndicated data

Standardized data that is regularly recorded and sold by suppliers such as Nielsen, IRI, and NET.

Market structure

Defines how a category is structured and how its brands interact. Provides a hierarchy for attributes such as size, form, or flavor. Identifies “white space” or market opportunities where no brands are currently competing.

Researchers use information to quantify, qualify, define, benchmark, and cast a critical eye on a company and its brand, the markets they serve, and the opportunities they seek. Dennis Dunn, Ph.D.

Principal B2BPulse