Types of research

Market research is the collection of information or data to better understand what is happening in the market place. A firm's marketing department needs to know about economic trends, as well as consumers' views. Based on this information, they can put together a marketing plan, which will meet their own needs as well as those of their consumers.

There are two general types of research:

• Primary or field research
• Secondary or desk research

Primary or field research

Primary research provides new data for a specific purpose

Obtaining new data for a specific purpose.

The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered in face-to-face interviews, by telephone, by post or via the internet, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded.

Field research [Field research: Gathering primary or new data - questionnaires, surveys etc. ] has the advantage that the firm itself has control over the whole process. The disadvantages are that it takes longer and is more expensive.

Secondary or desk research

This is the use of existing data that has already been collected.

It can be anything from a company's own sales statistics to Department of Trade and Industry reports. Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations. Traditionally, these have been paper-based, but more and more information is now available on CD-ROM or on-line through the Internet.

Desk research [Desk research: Gathering secondary or existing data - internet, newspapers etc. ] has the advantages of being cheaper and quicker than field research. The disadvantages are not knowing if the findings are accurate, or how relevant they will be to your product.

The research process

Marketing departments need to have information so they can get their marketing mix [Marketing mix: The mix of the 4Ps (product, price, place, promotion). ] right. For example, they will want to know what similar products already exist and how much they cost. They will also want to know whether consumers will want to buy their new product, and what they think about it. The process for doing this is as follows:

1. Identify the problem
2. Set objectives
3. Gather data
4. Analyse data

Now have a look at the process in more detail. If you were a marketing manager, you might do the following things:

Identify the problem

Make sure you know what you are trying to find out, and how it will help you. This is something that people sometimes forget. There is an endless amount of information available, so it is important to be focused.

Set objectives

You have to decide which are going to be the best ways to gather this information. Choose the most appropriate reports and journals. Depending on how much time you have, choose what field research you can do. Designing questionnaires and testing products on consumers can take a long time. You also have to decide whether you have the necessary skills, or whether you need to use a specialist research organisation. This is a more expensive option.

Gather data

You would usually do desk research first, because it is cheaper and quicker. Then supplement this with field research, so that you don't duplicate your findings. Designing the questionnaires and conducting the surveys takes place during this phase.

Analyse data

Now that you have the findings, you have to work out what they are telling you. If you identified your objectives before you started, this should not be too difficult. You must look for trends [trends: Shared views or patterns of behaviour. ] and patterns. Then you should see how this affects your marketing mix. For example, if you were thinking of setting a price for your product of £10 per unit, and 70% of the sample group [sample group: The group of people being questioned by primary or field research. ] think this is too high, then you may need to consider reducing the price. If you don't, you may find that few consumers will buy it. But remember: no survey is perfect. There is always a margin of error.

Sample question

When you have finished take a look at the sample answers on the next page.

Sample answers

Further things to do

Look at different types of adverts (on TV, in journals and on billboards) for one company's range of products. Work out what message they are trying to give about their products and to which group of people they are trying to sell (eg business/private users).

Now try a Test Bite