Performing Primary Market Research

How do I find out exactly what my customers want?

Primary Research, asking questions directly instead of reviewing already published data is one way to get specific information from customers. Conducting primary research can be performed in-house, using an outside market research agency, or a combination of the two. Both internal and external data should be gathered.

Records of customer buying patterns, product sales figures and other types of marketing information should be collected and analyzed to determine past and current customer sales trends. Then, determine what specific, additional information is needed to make informed marketing decisions for your business.

The two most utilized forms of obtaining primary research are focus groups and surveys.

Focus Groups

Focus groups are usually conducted with seven to twelve people who gather for a few hours to discuss a product or service. Focus groups are almost always conducted by outside research firms and are good first steps before launching a large-scale survey. Information gained from this type of research includes perceptions, emotions, issues and ideas that would not be gleaned from individual interviews. Keep in mind that focus group reactions cannot be applied in generalized terms because the sample is too small and is not random.

Surveys

Surveys of current customers and potential customers can help solve existing marketing problems and identify potential challenges. Surveys can be conducted via telephone, in person or through the mail.

Key to conducting any survey is the development of the questionnaire. Begin by stating clearly the objectives for conducting the survey; i.e., what is it you need to learn about your customer or target market. Analyze each question closely to determine that the response will obtain the desired result.

A highly structured questionnaire elicits uncomplicated information that is easy for the respondent to provide. An unstructured questionnaire allows more freedom to the interviewer and can illicit specific information that would otherwise not have been provided by the respondent.

Selecting the method of communication of the survey is also critical. Although personal interviews are flexible, they are also the most costly and have the most potential for interviewer bias. Telephone interviews are less costly but can miss in-depth information. Mail surveys can reach a broad range of respondents, have no interviewer bias and are relatively inexpensive, but there is little opportunity to collect in-depth information and usually are subject to slow return of the requested information. Dependent on budget and timing concerns, transmitting surveys using all three methods gives the best overall collection perspective.

When developing the questions for the survey, consider carefully content, wording, format and sequence of the questions. Avoid unnecessary questions; form questions that the respondent is willing to answer and has the information readily at hand. Be sure to define the issue, use simple, understandable words and be specific. Multiple-choice questions usually make it easier for the respondent to answer, but detailed information is lost. Open questions offer the opportunity for detailed responses but are more difficult to tabulate and analyze. Begin with basic information questions so the respondent becomes comfortable with the process, then place questions the respondent may be more reluctant to answer in the body of the survey.

Improved response to questionnaires can be generated by using direct incentives for participants, having telephone contact with respondents before they receive the questionnaire and providing stamped, self-addressed envelopes for return of the survey.

Pre-testing of the questionnaire to a small, sample group will help eliminate ambiguities and biases.

Analysis

If the marketing objective was clearly defined in advance, the focus groups and surveys developed and conducted with that objective in mind, analysis of the data should provide appropriate direction for the overall marketing approach.