A Simple and Complete Guide to a Market Research

If you are planning your own business, a market research is always the first step. If you have an existing business, a market research can greatly increase profit and produce results. Here is a simple and a complete guide in working on one.

1. Define the Problem & Objectives

Gather preliminary information that will help define the problem and suggest hypotheses. Consider these factors: Customer/ Market Analysis, Competitive Analysis, External Environment and Internal Environment.

2. Choose a research design which best fits your objectives.

There are five types of research designs. Experimental Designs try to find out the cause and effect relationship of a treatment of a variable. There are three experimental designs which are: pre-experimental, true-experimental, quasi-experimental and factorial. An example of an experimental research is having 3 groups with different treatments for each then choosing the most effective treatment.

Historical Research involves investigation of events, situations or problem that happened in the past and present and can happen in the future; their correlation or cause-effect relation.

Correlational Research investigates relations between variables (independent, dependent and intervening variables)

Field Research studies partakers in their natural setting or outside the business using tools such as observations, interview, and surveys with questionnaires.

Qualitative Research is gained from a very small group of people. Some examples are interviews, observations and critical incidents methodology.

 

3. Choose the best Sampling Design

There are six common types of sampling used in a market research.

Quota Sampling is similar to stratified sampling. The population is segmented into mutually exclusive subgroups then judgment is used to select the subjects or units from each segment based on a specified proportion. There are three steps in quota sampling: stratification of the population, predetermining of quota and selection samples.

Judgment Sampling involves the selection of respondents considered to be in the best position to give the needed information. Some examples of key informants are the controller, managers or owners of the firm.

Convenience Sampling is the selection of units from the population based on availability. This design is used to get the information fast. The disadvantage of this technique is that we have no idea how representative the information collected about the sample is to the population as a whole. But the information could still provide some fairly significant insights, and be a good source of data in exploratory research.

Snowball Sampling means choosing initial samples. These samples will then refer other respondents from whom the same information may be obtained.

Purposive Sampling involves the selection of key informants based on a predetermined set of criteria. These are people considered to be most appropriate source of data in terms of the objectives of the study.

Accidental Sampling implies that information is collected from the respondents who by chance are met by the researcher in the process of gathering data.

 

4. Collect and analyze your data.

In collecting data, you should extract meaningful information and always ensure the accuracy of data. There are two types of data. Primary Data refers to information which is gathered directly from the original source (ex. First person accounts). Secondary Data refers to information which are taken from published and unpublished data which are previously gathered by other individuals or agencies (ex. Books, magazines, internet, etc). The primary tools of collecting data are: Interview, Observation, Survey and Questionnaire.

To analyze data, focus on the essential features of the study and application of appropriate statistical tools to generate results. Data may be analyzed quantitatively and / or qualitatively depending on the level of measurement and the number of dimensions and variables of the study. Analyze in depth to give meaning to the data presented in the table. Avoid simple table reading. Use either descriptive of inferential analysis. Check if data are sufficient, valid, realistic and accurate.

 

5. Report Presentation

In presenting the data, there should be an Executive Summary, Body which are the findings of the study, Limitations of the Research, Conclusions, Recommendations, and Appendix. There are three ways of presenting data. Textual form consists of quantitative data while Tabular and Graphical consists of qualitative data.