Marketing Research

When existing marketing research reports are insufficient for understanding a company’s internal environment, the company may choose to conduct new marketing research to fill any gaps in market intelligence. Such marketing research projects generally fall into two categories: primary research and secondary research.

Primary and secondary research can be further categorized as either quantitative or qualitative. Quantitative research involves data collected from a sample set of the target population using questionnaires or surveys with scales or rating systems, then analyzing that data using statistical techniques to identify trends, conditions and opinions. Qualitative research involves data collected from a small group of participants and not analyzed with statistical techniques but used to define a problem, generate or validate hypotheses, explore an issue and reveal insights or motives.

• Primary Marketing Research about a company’s strengths and weaknesses involves developing a broader understanding of the perceptions and attitudes toward the company’s products by using tools such as interviews, focus groups, and survey questionnaires. These research projects are not limited to learning about customer perceptions and behavior; they may also involve understanding the perceptions of suppliers toward the company’s policies and products, conducting an employee survey to better understand existing capabilities and potential training needs, and evaluating technology that is being used in the marketplace. The means to gather data on a variety of areas where a company needs to know more is available, but the focus should be on discovering areas of improvement and consolidating areas of strength.
• Secondary Marketing Research involves the use of content and information that is currently available within the company or in the market through primary research that has already been conducted and is readily obtainable through company reports, trade journals, industry publications, and the Internet. Secondary research involves gathering this existing information to better understand the company’s strengths and weaknesses.

Here is an example of Marketing Research:

A medical supply company is looking to extend its product line in the area of Diabetes testing devices. The company has made an assumption that the average age of onset of Type 2 Diabetes is decreasing from the past average of 55 years. The company plans to conduct primary market research and gather existing secondary market research to validate or disprove this assumption.

• Primary market research may include holding a conference and inviting a cross section of family doctors in the area. Information provided by the doctors can help them understand the current trends.
• The company can also consider existing secondary market research by reviewing current medical journals to see if there are recorded trends and statistical analyses supporting the theory of a younger population developing Type 2 Diabetes.

If the research collected suggests that the population is indeed demonstrating an increase in onset of Type 2 Diabetes at a younger age, the new product line could include products that will be marketed to a younger age group through the use of technology more suited to a younger demographic. Cell phone apps, cloud storage databases, and the like may be useful and desired by this emerging group.

Understanding a company’s strengths and weaknesses with respect to its ability to meet its customers’ demands and face competition helps the marketing strategy team determine the competitive positioning of the company’s products. A detailed list of strengths and weaknesses should be documented so it can be used as an input to other processes within marketing strategy and other functional strategies. The document may also contain a plan on how to address any weaknesses and capitalize on strengths.

Here is an example of Strengths and Weaknesses:

• A general overview of strengths and weaknesses of an established local print shop might be as follows:

Strengths: Brand recognition, good knowledge of local market, technology, qualified staff in place, experienced management, and good operational procedures

Weaknesses: Limited ability to support customer requirements for same-day print-on-demand and small-run printing, and lack of infrastructure for online sales and marketing

• The strengths and weaknesses of a retail clothing store might be as follows:

Strengths: Loyal customer base, exceptional customer service, and differentiated products

Weaknesses: Weak brand image (as compared to competitors’ branding), high costs associated with supply chain, and lack of e-commerce capability

Acknowledgement: The content is borrowed from www.smstudy.com (original blog url: http://www.smstudy.com/Article/Marketing-Research)