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Primary Vs Secondary Research Market by qkw22587

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Primary Vs Secondary Research Market document sample

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									                   How To Guide
                   Engage Targets with Market Research



                   Executive Summary:

                   This report has been designed to provide practical advice for gaining
                   insight from market research initiatives.



                   Read this brief 9-page report to learn:



                          Market Research Defined

                          Benefits of Market Research

                          Primary vs. Secondary Research

                          Common Market Research Projects

                          Market Research Tools & Best Practices



                   Read this report to learn how to leverage your information assets to
                   support decision-making, identify connections between actions and
                   outcomes, and listen to your customers.




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                   Table of Contents                                     Page


                   Market Research Defined                                   3

                   Benefits of Market Research                               3

                   Primary vs. Secondary Research                            4

                   Common Market Research Projects                           4

                   Market Research Tools & Best Practices                    6




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                   Market Research Defined


                   Market research is the process of systematically gathering, recording,
                   and analyzing data regarding customers, competitors, and market
                   conditions, to help organizations make better business decisions about
                   the development and marketing of new or existing products and
                   services.




                   Benefits of Market Research


                          Drive Customer-Centricity - use our Customer-Centricity
                           Checklist to learn 12 proven strategies.

                          Identify Market Opportunities - read our report: Market
                           Segmentation, Targeting, & Positioning, to learn how to
                           identify new opportunities.

                          Reduce Time-to-Market - leveraging the “voice-of-the-
                           customer” streamlines the product development, testing, and
                           marketing processes, increasing velocity.

                          Monitor Competitive Advantages - regular competitive
                           analysis ensures that your organization will not lose or fail to
                           communicate key advantages.

                          Provide Decision-Making Insights - making decisions without
                           adequate market intelligence can be disastrous. Base your
                           decisions on facts, not gut instinct.

                          Better Allocation of Resources - by analyzing which products,
                           programs, channels, and markets are most lucrative,
                           organizations can focus their precious resources on profitable
                           activities.

                          Increase Profitability & Growth - having a solid
                           understanding of market needs is critical for meeting and
                           exceeding customer expectations, and leads to customer
                           retention, increased profitability, and growth.

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                   Primary vs. Secondary Research


                   There are two categories of market research: primary research and
                   secondary research. Primary research involves the collection of data that
                   does not currently exist or is unavailable to an organization. Secondary
                   research involves the collection, analysis, and summarization of existing
                   data derived from third-party research firms or other sources.

                   Many organizations do not have the resources in-house to conduct
                   effective primary research campaigns, and glean insights from full-
                   service research firms such as Gartner, Inc., IDC, Forrester, Harris
                   Interactive, AC Nielsen, Datamonitor, Dun and Bradstreet,
                   Millward Brown, NPD Group, or TNS.




                   Common Market Research Projects


                   Following are a list of common market research projects designed to test
                   or validate assumptions made by the business:



                          Market Sizing & Segmentation - how large is our target
                           market? How should we segment our market? What are our
                           customer profiles? Use our Market Segmentation Tool to
                           analyze market sizing, market segments and customer profiles



                          Competitive Analysis - who are our direct/indirect competitors?
                           What products/services are eroding our market share? What
                           messages are competitors sending? Who is growing quickly and
                           needs to be watched?



                          Product Positioning - how much price power do we have?
                           Where do customers position us? What is our price elasticity of
                           demand?



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                          Product Penetration - what is our market share? Are we
                           gaining or losing share of wallet? What geographies are not
                           penetrated?



                          Brand Awareness & Preferences - what brand attributes are
                           most important? How aware is our market of our brand?



                          Consumer Behavior - how do our customers use our products?
                           What products are usually purchased together? How does
                           placement affect sales?



                          Customer Analysis - how many customers do we have? What
                           customers are most profitable? What is our customer lifetime
                           value?



                          Customer Satisfaction - what is our retention rate? How does
                           customer satisfaction affect profitability? Are we getting
                           referrals?



                          Demand Forecasting - what were our previous sales by product
                           line? What staffing will we need to deliver on sales? What is our
                           sales forecast?



                          Distribution Channels - which channels are not producing
                           results? How can we increase promotion of our products?



                          Decision-Making Process - how do our customers prefer to
                           buy? What are the top buying criteria? Is our sales process
                           aligned?



                          Marketing Effectiveness - how effective was our last
                           campaign? Where do the majority of our leads come from? What
                           is the ROI from marketing?




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                   Market Research Tools & Best Practices

                       1. Define Responsibilities - Use our Marketing Analyst Job
                          Description to define key responsibilities and set the direction for
                          this function.

                       2. Identify the Problem - a clear statement of the problem is the key
                          to effective market research. Examples of common research
                          problem questions are:

                                What competitive advantages do we have?
                                Who is our target market? What makes them unique?
                                Where do our prospects position us in the market?
                                What is our market share? Is it being eroded?
                                How likely are customers to refer us business?
                                Which sales channels are most effective?
                                How can we improve our sales process?
                                What new products should we develop?
                                How effective are our marketing campaigns?
                                What is the optimal price for our products?


                       3. Establish Research Objectives - set objectives that once
                          achieved provide the information required to solve the problem.
                          Generally, your objective is to validate a working hypothesis. For
                          example, your objective may be to test a cause-effect relationship
                          such as: if we reduce our price, what will the impact be on sales
                          volume and profitability?

                       4. Set Research Project Timelines - based on your problem and
                          objectives, develop a project charter to schedule resources and
                          set timelines for execution.

                       5. Select Research Design - there are three main types of research
                          design: exploratory, descriptive, and causal.

                          Exploratory research involves collecting information in an
                          unstructured and informal way, such as reviewing competitors.
                          websites to gain further understanding of their offerings.



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                          Descriptive research refers to methods that analyze marketing
                          variables like consumer attitudes, behaviors, and intentions.
                          Customer satisfaction and brand perception surveys are
                          examples of descriptive studies.

                          Causal research is conducted by controlling various factors to
                          identify cause-effect relationships that affect the problem. Testing
                          the effect of marketing campaigns on sales in a specific geographic
                          region is an example of causal research.

                          Causal research is most informative but can be very expensive and
                          can require complex experiments to ensure validity. Start with
                          exploratory and descriptive research designs if your organization
                          does not have an existing market research function.

                       6. Determine Data Requirements - determine what information you
                          will need to solve the research problem and estimate the cost of
                          gathering that data. Primary research data is typically more
                          expensive and time-consuming than secondary research data, but
                          provides much more accurate insight. Depending on your timelines,
                          budgets, and resources, decide if purchasing an industry
                          benchmarking report from an analyst firm will provide a better
                          cost/benefit than conducting primary research for your project.

                       7. Download Tools & Templates - following are some market
                          research reports, tools, and templates that you can download and
                          quickly customize to suit your specific needs:

                                Advertisement Evaluation Matrix
                                Business Requirements Template
                                Brand Perception Survey
                                Competitive Ad vs. PR Analysis Tool
                                Competitive Analysis Tool
                                Competitive Product Positioning Map
                                Competitive Website Analysis Tool
                                Customer Profile Template
                                Customer Satisfaction Survey
                                Market Requirements Document
                                Market Research Report Template
                                Marketing Analyst Job Description
                                Market Segmentation, Targeting, & Positioning
                                Market Segmentation Tool
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                                 Practical Product Management Tools Report
                                 Product Development Charter
                                 Product Development Schedule
                                 Product Feature Priority Tool
                                 Product Feature Request Form
                                 Product Launch Checklist
                                 Product Positioning Tool
                                 Product Requirements Document
                                 Product Sanity-Check Tool
                                 Sales Analysis Tool
                                 STEP Industry Analysis
                                 SWOT Internal Analysis


                       8. Choose a Research Method - there are two methods for gathering
                          information: observation or asking questions. The most common,
                          and cost-effective tool is the questionnaire or survey. Structured
                          surveys are quantitative and list close-end questions, such as
                          multiple-choice, yes/no, or scale rankings. Unstructured surveys
                          gather qualitative data and allow respondents to answer in their own
                          words. Depending on your research objectives and problem, either
                          type of survey can be effective.

                          Some organizations find that mixing these types provides both
                          measureable results and real-world insights that can be missed by
                          setting specific questions. If you require primary research data,
                          consider each of the following research methods:

                                  Telephone Surveys - consider Harris Interactive.
                                  Online Surveys - Question Pro, Key Survey, SPSS.
                                  Personal Interviews - use our Business Requirement
                                  Document to collect data directly from discussions.
                                  Focus Groups - create a customer/prospect advisory panel
                                  that represents a cross-section of your target market and
                                  their needs.
                                  Video Cameras - watch consumers USE your product.

                       9. Collect & Analyze Data - once you have selected your research
                          method, built your data-collection tool, and performed the study,
                          gather all the data together to glean insights. The first step is the
                          ensure data quality and accuracy; verify that raw data was correctly
                          entered into the data-collection form and that there are no
                          respondents who are looking to skew results.
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                          Next, aggregate the data to determine averages, slice-and-dice by
                          demographics, and do other statistical analysis. Ensure that there is
                          a large enough sample size to provide a real statistical
                          representation and determine the margin of error. For a survey of
                          100 people, expect a margin of error of +/- 10%. For a sample size
                          of 600, expect +/- 4%.

                       10. Report to Senior Management - based on your findings, create a
                           report summarizing the research problem, objectives, research
                           design & methods, information sources, and results.

                          Focus on providing a high-level overview rather than getting into the
                          low-level findings. Assess the implications of your results on
                          business opportunities and risks, and make recommendations for
                          improving business operations. Send your Market Research
                          Report to the relevant stakeholders, and invite them to meet to
                          discuss further.




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