Primary Market Research Techniques

This info-guide provides a summary of primary research techniques - primary, being research that is generated first-hand by you and your business.

                              

  

1. Questionnaires

Pros:

• consistent and objective;
• calculate responses (statistics);
• additional questionnaires can be prepared if necessary;

Cons:

• inflexible;
• time consuming to prepare, print and calculate responses.

2. Surveys Prepared by College or Business Students

Pros:

• inexpensive;
• third party;
• survey prepared under guidance of program instructor;
• many students can carry out a range of data collection.

Cons:

• priorities and time frame may not be the same as yours;
• may not be able to fit practical market research into course content;
• inexperienced at obtaining information.

3. Informal Talks with Customers

Pros:

• open and revealing responses;
• inexpensive;
• can obtain subjective and non-verbal information;
• opportunity to ask unprepared additional questions.

Cons:

• time consuming;
• must prepare key issues in advance;
• responses may be vague and contradictory and without much thought.

4. Interviews (One-on-one)

Pros:

• face to face discussions;
• combines objective and subjective information;
• opportunity to obtain additional comments.

Cons:

• requires more prep time to develop closed, open ended and probing questions;
• time consuming to arrange appointments;
• few people may be willing to be a subject for an interview.

5. Focus Groups (8-12 people)

Pros:

• in-depth probing;
• wide open responses;
• observation of interaction and dynamics of participants.

Cons:

• may require a professional facilitator;
• additional cost of room and observers.

6. Suppliers, Distributors, Agents & Brokers

Pros:

• inside knowledge of industry;
• knowledge of players, trends.

Cons:

• could favor existing dealers;
• narrow view point.

7. Competitors

Pros:

• observe traffic counts, average sales figures and customer patterns;
• observations on any market aspect (i.e. location, advertising, pricing etc.);
• competition in other communities willing to talk to someone who won't be a threat.

Cons:

• biased;
• unwilling to talk to potential competitor;
• travel and long distance costs.

8. Retired From the Industry

Pros:

• objective and open;
• knowledge of industry and its pitfalls and who is succeeding.

Cons:

• information may be dated;
• tired of business concerns.

9. Mentor (experienced business person outside the industry)

Pros:

• objective;
• can analyze situation and be very frank;
• can assess your own capacity, resources and managerial ability;
• can advise on strategy and major decisions.

Cons:

• lack specific industry knowledge;
• not always available on a no fee basis.