Marketing Research

Market Research Definition

The systematic gathering of data about individuals or organizations using statistical analysis and techniques to support decision making.
Market research often identifies how to improve the product, service or system and increase its chance of success within a particular sector or segment.

The price a user is prepared to pay is usually determined through market research.
This in turn sets an upper limit of cost to the design and production of a potential product, service or system.
Market research has a crucial role in determining the constraints a designer has to work within.

The use of consumer reports, newspaper, magazines, encyclopaedias, manufacturers information, etc. to conduct research.

Nature: Many sources of information are available
Reliability: Data can be both qualitative or quantitative
Costs: There may be an abundance of data, which can be too time- consuming and therefore costly.

The reliance on the knowledge and skills of an expert in the operation of the product.

Nature: Expert knowledge can help decide design direction. It may be difficult to locate an expert.
Reliability: Data is usually qualitative.
Costs: Can be expensive to hire an expert.

The observation of people using a product and collection of comments from people who have used a product.

Nature: The “user” is a non-specialist, which makes trials easier and cost-effective. However, users may carry out tasks in different ways from those expected and be inexperienced.
Reliability: Data is usually qualitative.
Costs: Cost-effective.

Nature: It is simple, easy to construct and can be done relatively quick.
Reliability: The data collected can be qualitative or statistics can be produced (quantitative).
Costs: Cost-effective.

A tool to quickly compare a product to others in the market in a graphical representation.
Puts product onto a chart with two axes labeled with specific criteria.
The position of the product determines to what extent it meets the criteria.

Nature: It is simple, easy to construct and can be done relatively quick.
Reliability: It is qualitative as it examines consumer perceptions. Could be biased.
Costs: Cost-effective.

The study and interpretation of the political, economic, social and technological events and trends that influence a business, industry or market.

Nature: Careful study of various factors influencing the business by which organizations monitor their relevant environment to identify opportunities and threats affecting their business.
Reliability: Can be biased; open for interpretation.
Costs: Lengthy process, therefore costly.

Examples

Market Sizing: Estimate the size of the market for eco-friendly household cleaning products by segmenting the total market and identifying the eco-conscious portion.
Trend Analysis: Examine economic trends related to sustainability and regulations, assessing consumer shifts towards eco-friendly options and potential policy impacts.
Competitive Landscape: Analyze competitors' market shares, pricing, and distribution strategies to identify opportunities and threats.
Consumer Preferences: Understand consumer attitudes towards sustainability and willingness to pay for eco-friendly products through surveys and interviews.
Target Market Identification: Define the target segment as environmentally conscious consumers and analyze their demographics and purchasing behaviors.
Demand Forecasting: Project sales volumes based on market size, trends, competition, and economic forecasts for effective resource allocation.
Risk Assessment: Identify and mitigate risks such as supply chain disruptions, regulatory changes, and competitive threats to enhance business resilience.

Technology Landscape Analysis: Research current trends in smart home tech, focusing on AI, NLP, and IoT, to understand industry advancements and user expectations.
Scientific Advances Review: Stay updated on breakthroughs in speech recognition, machine learning, and sensors to integrate cutting-edge features into the product.
Competitive Benchmarking: Analyze rivals' products to identify tech innovations and assess strengths and weaknesses for differentiation opportunities.
User Feedback Analysis: Gather user input to understand desired tech features and behaviors, shaping product design and functionality.
Collaboration with Research: Partner with tech firms or research institutions to access expertise and incorporate groundbreaking technologies.
Prototype Development: Integrate advancements into prototypes, testing and refining based on user feedback and tech feasibility.
Future-proofing Strategy: Anticipate future tech trends, ensuring product flexibility and adaptation for sustained competitiveness.

Consumers reactions to technology vary and they can be classified into three categories: technophiles, techno-cautious and technophobes.

Someone who immediately welcomes a technological change (innovators and early adopters).

Someone who needs some convincing before embracing technological change (early majority to late majority).

Consumers reactions to green issues vary and they can be classified into four categories: eco-warriors, eco-champions, eco-fans and eco-phobes.