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Understanding the Types of Marketing Research

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❶They can also be less expensive than individual interviews, as you are working with multiple people at the same time.

Types of Market Research and Their Differences

Primary Research: Collecting New, Specific Information
Descriptive Research
Types of Market Research

Evidence for commercial research being gathered informally dates to the Medieval period. In , the German textile manufacturer, Johann Fugger , travelled from Augsburg to Graben in order to gather information on the international textile industry. He exchanged detailed letters on trade conditions in relevant areas. Although, this type of information would have been termed "commercial intelligence" at the time, it created a precedent for the systemic collection of marketing information.

During the European age of discovery, industrial houses began to import exotic, luxury goods - calico cloth from India, porcelain, silk and tea from China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World. During this period, Daniel Defoe , a London merchant, published information on trade and economic resources of England and Scotland.

Defoe was a prolific publisher and among his many publications are titles devoted to the state of trade including; Trade of Britain Stated, ; Trade of Scotland with France, and The Trade to India Critically and Calmly Considered, - all of which provided merchants and traders with important information on which to base business decisions.

Until the late 18th-century, European and North-American economies were characteristed by local production and consumption. Produce, household goods and tools were produced by local artisans or farmers with exchange taking place in local markets or fairs.

Under these conditions, the need for marketing information was minimail. However, the rise of mass-production following the industrial revolution, combined with improved transportation systems of the early 19th-century, led to the creation of national markets and ultimately, stimulated the need for more detailed information about customers, competitors, distribution systems and market communications.

By the 19th-century, manufacturers were exploring ways to understand the different market needs and behaviours of groups of consumers. A study of the German book trade found examples of both product differentiation and market segmentation as early as the s. In , Amercian advertising agency, N. Between and , George B Waldron, working at Mahin's Advertising Agency in the United States used tax registers, city directories and census data to show advertisers the proportion of educated vs illiterate consumers and the earning capacity of different occupations in a very early example of simple market segmentation.

Parlin published a number of studies of various product-markets including agriculture ; consumer goods c. In Paul Cherington improved on primitive forms of demographic market segmentation when he developed the 'ABCD' household typology; the first socio-demographic segmentation tool. In the first three decades of the 20th-century, advertising agencies and marketing departments developed the basic techniques used in quantitative and qualitative research - survey methods, questionnaires, gallup polls etc.

Duncan of the University of Chicago. Adequate knowledge of consumer preferences was a key to survival in the face of increasingly competitive markets. The advent of commercial radio in the s, and television in the s, led a number of market research companies to develop the means to measure audience size and audience composition.

In , Arthur Nielsen founded market research company, A C Nielsen and over next decade pioneered the measurement of radio audiences. He subsequently applied his methods to the measurement of television audiences. Around the same time, Daniel Starch developed measures for testing advertising copy effectiveness in print media newspapers and magazines , and these subsequently became known as Starch scores and are still used today.

During, the s and s, many of the data collection methods, probability sampling methods, survey methods, questionnaire design and key metrics were developed. By the s, Ernest Dichter was pioneering the focus group method of qualitative research. For this, he is often described as the 'father of market research. These methods eventually lead to the development of motivational research. By the s, the first courses on marketing research were taught in universities and colleges.

Brown became one of the popular textbooks during this period. Marketers, such as Paul Green, were instrumental in developing techniques such as conjoint analysis and multidimensional scaling , both of which are used in positioning maps, market segmentation, choice analysis and other marketing applications.

Web analytics were born out of the need to track the behavior of site visitors and, as the popularity of e-commerce and web advertising grew, businesses demanded details on the information created by new practices in web data collection, such as click-through and exit rates.

As the Internet boomed, websites became larger and more complex and the possibility of two-way communication between businesses and their consumers became a reality. Provided with the capacity to interact with online customers, Researchers were able to collect large amounts of data that were previously unavailable, further propelling the marketing research industry.

In the new millennium, as the Internet continued to develop and websites became more interactive, data collection and analysis became more commonplace for those marketing research firms whose clients had a web presence. Retail outlets were appearing online and the previous need for bricks-and-mortar stores was diminishing at a greater pace than online competition was growing.

With so many online channels for consumers to make purchases, companies needed newer and more compelling methods, in combination with messages that resonated more effectively, to capture the attention of the average consumer. Having access to web data did not automatically provide companies with the rationale behind the behavior of users visiting their sites, which provoked the marketing research industry to develop new and better ways of tracking, collecting and interpreting information.

This led to the development of various tools like online focus groups and pop-up or website intercept surveys. These types of services allowed companies to dig deeper into the motivations of consumers, augmenting their insights and utilizing this data to drive market share.

As information around the world became more accessible, increased competition led companies to demand more of market researchers. It was no longer sufficient to follow trends in web behavior or track sales data; companies now needed access to consumer behavior throughout the entire purchase process. This meant the Marketing Research Industry, again, needed to adapt to the rapidly changing needs of the marketplace, and to the demands of companies looking for a competitive edge. Today, marketing research has adapted to innovations in technology and the corresponding ease with which information is available.

This demand is driving marketing researchers to develop new platforms for interactive, two-way communication between their firms and consumers.

Mobile devices such as Smart Phones are the best example of an emerging platform that enables businesses to connect with their customers throughout the entire buying process.

As personal mobile devices become more capable and widespread, the marketing research industry will look to further capitalize on this trend.

Mobile devices present the perfect channel for research firms to retrieve immediate impressions from buyers and to provide their clients with a holistic view of the consumers within their target markets, and beyond. Now, more than ever, innovation is the key to success for Marketing Researchers. Marketing Research Clients are beginning to demand highly personalized and specifically-focused products from the marketing research firms; big data is great for identifying general market segments, but is less capable of identifying key factors of niche markets, which now defines the competitive edge companies are looking for in this mobile-digital age.

First, marketing research is systematic. Thus systematic planning is required at all the stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses. Experts in marketing research have shown that studies featuring multiple and often competing hypotheses yield more meaningful results than those featuring only one dominant hypothesis.

Marketing research is objective. It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially. While research is always influenced by the researcher's research philosophy, it should be free from the personal or political biases of the researcher or the management.

Research which is motivated by personal or political gain involves a breach of professional standards. Such research is deliberately biased so as to result in predetermined findings.

The objective nature of marketing research underscores the importance of ethical considerations. These facilities have one-way mirrors so managers can listen to consumers' feedback about their products and services. A moderator, or special interviewer, usually runs the focus group. She develops a discussion guide of five to 10 questions related to the product. She then asks participants various questions about the product. The ideal size for a focus group is six to 10 people. A moderator may speak to customers about a small restaurant's new chicken sandwich meal.

She may ask them if they like the idea of a new chicken sandwich, how much they would pay for it and whether or not they would purchase it. Companies often use focus groups to narrow several versions of a product down to the best offering. One-on-one interviews are conducted in a similar manner to focus groups, but with one person. One-on-one interviews go a step beyond typical personal interviews. Company managers use these interviews to watch someone actually use their product.

For example, a computer software firm may want to test a new program, so they set up a computer and watch as individuals use the software. Like focus groups, managers observe behind one-way mirrors. Moderators then sit in the room with each person and ask them questions, including how they like the software, or how easy it is to use.

For example by conducting exploratory research the marketer can find out that the competition is using popular social media channels like Facebook, Twitter, LinkedIn and YouTube to reach target consumers effectively and successfully engaging customers with the brand directly. Now with this information he can plan a formal research design to test his hypothesis. Thus descriptive research is used to explain, monitor and test hypotheses created by marketers to help them find accurate answers.

Due to this reason descriptive research is rigid, well structure and well planned and uses quantitative techniques like questionnaires, structured interviews, data analysis etc. For example, the marketer from previous case and use descriptive research to find out if he also starts using social media marketing techniques for promoting his products and services then:.

Causal research is used by marketers to find cause and effect relationship of variables. In this type of research, the marketer tries to understand the effects of manipulating independent variable on other dependent variable. Causal research uses field and laboratory experimentation techniques to achieve its goals. This research is used by marketers mainly to predict and test hypotheses.

Think I have missed any major insights in this article? Get thee to the comments and let me know. Thanks for the article.. Sandeep, a formal education can help you hone your conceptual skills as well as give you a better understanding about the applicability of market research in different business scenarios.

You are currently working in the field level of market research. The data collected by you as an interviewer can be then processed as qualitative data or quantitative data.

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Marketers use marketing research to find answers to various questions related to market dynamics, business environment and consumer behaviour. For this a .

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There are many different types of market research that cover various areas of study, and as a result are often misunderstood. Whether you’re interested in learning more about your customer’s buying habits or how much they might pay for a new product, market research can help (if you use it correctly).

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Types of Marketing Research Definition: The Marketing Research is the systematic process of collecting, recording and analyzing the information relevant to finding solutions to a problem in the field of marketing. Where else market research can be used. But understanding the different types of market research available to you isn’t just useful for new businesses. It’s also handy for existing businesses who are looking to find new customer segments and markets for their existing products or services.

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There are many different types of marketing research which can be used by any company trying to find out better ideas for their products or services. The usage of these market research types depends on the research objective of the organization. Depending on method the right MR agency is hired. Jun 30,  · Marketing research is usually the first step in the marketing process, after ideas for products are conceived. Small companies conduct marketing research to .