How to do Marketing Research for a New Product
Introduction
A lot of marketers, business owners, and entrepreneurs pass through the rigorous process of figuring out a good product but they get stuck on the next step to take.
This article will guide you on how to do marketing research for a new product, including simplified steps you can take to achieve a solid research and goal.
Most importantly, you should have a product or a service in mind while following through these steps; unless you just want to have an understanding of how to do marketing research for a new product.
What Is Marketing Research?
Marketing Research scales on a broad level because it involves the systematic process of collecting, recording, and analyzing information relevant to finding solutions to a problem in the field of marketing.
It encompasses researching into a new product, its mode of distribution and its development.
In addition, Marketing Research covers the four P’s of marketing (Product, Place, Price, and Promotion) in Identifying and measuring consumer’s preferences.
Definition of marketing
Marketing is a group of activities an organization performs to promote the sales or purchase of a product or a service; either to a target customer or another business, while achieving an objective or a goal.
Definition of research
Research is the study of a particular problem, concern, or issue using a scientific method or a workable technique with the aim of solving or getting facts out of the problem.
What is Market Research?
Market research is a technique that involves gathering information to better understand a company’s target market.
As a result, most businesses and entrepreneurs use this information to design better products, improve user experience, and construct a marketing message that attracts quality leads and improves conversion rates.
Difference between marketing research and market research
You may be wondering, what is the difference between marketing research and market research?
The simple difference between these concepts is:
Marketing research is all about getting information about a product and a consumer’s preference.
On the other hand, market research means getting information about a segment of the four P’s of marketing – Place. It is all about getting information about a customer, product competition, and the industry generally.
In short, market research is a subset of marketing research.
How Do You Do Marketing Research?
Figure out your consumers
Knowing your target market is the first step to starting a marketing research.
It is best to know the particular group of people you want to market your product to because not everyone will be your customer.
The demographics, interests, needs, and personalities of the targeted consumer will be investigated here.
In other words, information such as age, gender, income, education level, location, occupation, and marital status are data that can be used for market segmentation.
Market segmentation simply means grouping your potential customers according to their similarities or buying habit.
Study your competitors
Marketing research gives useful information about your competitors because when you study and understand your competitors, you will have a deeper understanding of market opportunities. You can also, research your competitor’s website and conduct customer interviews as well.
Similarly, making a list of all your competitors will be great; after that, you can conduct individual strengths, weaknesses, opportunities, and threats to each company.
Subsequently, you can estimate your company’s market position and further get an understanding of strengths, weaknesses, opportunities, and threats you pose.
Make use of presentation templates
Presenting your detailed research in an understandable way is a key aspect. There are several templates that come with creative slides, graphics, and engaging contents, that can help you create a comprehensive presentation.
Data such as marital status, age, gender, likes, and dislikes can be shown with the use of charts and graphs; seamlessly giving your sales and marketing team a whole view of the potential customers and further, aiding a faster grasp and understanding of the target audience.
Cumulate and analyse additional data
Other data such as articles, statistics from the bureau, questionnaires, market survey, and the likes can be included in the research report and analyzed critically. This is because your business or company can benefit hugely from the insights that will be gotten from it.
From the analysis of the data gathered; the growth rate, company size, buying trends, cash flow, market share, and the overview of your company can be determined.
The Four Types of Marketing Research
Descriptive Market Research
The descriptive research is concerned with testing the hypothesis to search out the correct answers to the research problem. For instance, who are the potential buyers of the product? How the products are consumed? What is the demand forecast? And who are the potential competitors?
The objective of the descriptive type of market research is to measure the frequency with which things occur, and also the extent to which the variables beneath the study will be correlated.
Predictive Market Research
The predictive research is conducted to forecast certain market variables for which the research is intended.
This includes predicting the long run sales; projection of growth; test market to predict the success of a brand-new product, and shaping of a firm’s product line among many others.
Marketing research can be further classified on the premise of information generated.They include:
Quantitative Research: This type of research or analysis is based on numbers.
Qualitative Research: This type of research is based on description and distinction.
This further states that there are many kinds of marketing research that a company adopts on the premise of its pursued objectives and sort of information gathered.
Causal Market Research
The causal research is conducted to ascertain the cause-and-effect relationship between variables.
For instance, if the packaging of the merchandise is modified, then what is going to be its result on the merchandise durability?
This instance shows the fact that the reason an amendment in one variable is apparent, is because of the amendment within the alternative.
Exploratory Market Research:
In this type of research, the researcher uses exploratory analysis.
That is to say, when there is a little data about the research problem, the researcher needs to do the following:
- Clear his thoughts
- Get more insights
- Formulate the problems
- Remove impractical ideas
- Come up with a hypothesis to understand the connection of the research design.
This can be done by using secondary data; That is data from inside and outside of the organization; conducting experimental studies; and processing feedback from surveys or the market.
The Seven Steps in Marketing Research
It is not necessary that each analysis process should follow a given sequence.
However, marketing research follows a generalized pattern that may be softened and studied as ordered stages.
The various stages within the research method includes:
Identification of the Problem
Market research starts with the identification of a problem faced by an organization.
A defined statement of the problem may not be attainable at the first instance of the research process as a result of the basis of the problem apparent at the first stage.
A precise definition of the matter helps the researcher in subsequent researches, as well as the setting of correct analysis objectives, the determination of the techniques, and also the extent of data collection.
Research Objectives
After characterizing and shaping the problem, with or without informative analysis, the researcher must take down a formal statement of research objectives.
Such objectives are explicit in qualitative or quantitative terms and expressed as research queries, statements, or hypotheses.
On the other hand; a hypothesis may be a statement that may be refuted or supported by empirical findings. Once the objective or the hypothesis is developed, the researcher is prepared to decide on the research style or design.
Plan the Research Design
After stating the research problem and knowing the objectives, the research style or design should be developed.
A research style is a plan stating the process for collecting and analyzing the required data. It stands as a framework for the research plan of action.
The objectives of the study are enclosed within the research design or style. This is done to ensure that the information collected is relevant to the objectives.
The researcher should, in addition, confirm the kind of sources of data required; the data collection method, (e.g., survey or interview), the sampling, methodology, and also the timing and attainable prices of the research.
Plan the Sample
Sampling is a process that uses a small number of items, or things, or components of the ‘population’ to create a conclusion relating to the ‘population’.
In addition, vital queries that can come up include: who can be a justified representative sample? Which is the target ‘population’? What ought to be the sample size, how large, or how small? How to choose the assorted units to create up the sample?
Data Collection
The collection of data/ information relates to the gathering of facts to be employed in finding the problem. Therefore, ways of market research are basically ways of data collection.
Data can be secondary; which means it can be collected from involved reports, magazines, and alternative periodicals, particularly written articles, government publications, books, among many others.
Data can be primary, that is, collected from the initial base through enquiry with the help of various tools.
There are generally two types of sources:
(i) Internal sources— existing among the firm itself, like information, salesmen’s reports, and many others.
(ii) External sources—existing outside the firm.
Data Processing and Analysis
Data processing starts with editing data, and this involves a careful examination of the already collected data for consistency in classification, omission, and legibility.
After that, tabulation of the results can be done.
Data analysis involves the application of logic to the cumulated data on the subject. In addition, It encompasses finding out the consistent patterns and detailing the appropriate data.
Formulate Conclusion, Prepare and Present the Report
To sum up, interpreting the data and drawing up a conclusion for use in managerial decisions is essential.
The report should clearly show the research findings, and not include complicated results or details about the technical aspect of the research methodology.
Most times, the management has no interest in the details of the research style and statistical or graphical representation; but instead, in the valuable findings of the research.
If necessary, the researcher may state his recommendations or suggestions during or at the end of the research. Researchers should most importantly, show an accurate, understandable, and useful presentation.
Conclusion
Performing marketing research for a new product requires devoted energy, time, and money especially when you are new to the field; but once you are able to get and fully understand the processes listed above without missing any crucial part out; you will be on your way to creating a robust, yet simplified, valuable and detailed market research for your product, business or organization.
