Market Solutions FAQ

Rather than provide a text book definition, we'll give you our perspective on this in lay terms.

Market research is a way of knowing. It is getting an answer to your question(s). Market research derives the answers from speaking with your existing or potential markets. That is, market research develops and asks the right questions of the right people and interprets the data in the right way - so you can act!

Market researchers are the people with experience in structuring the right questions, identifying the markets and best ways to contact them, and then interpreting the data. We regard ourselves as the interpreter between you and your market.

Anyone with a question about their market can use market research to inform a decision. Remember that the market is not always the customer but may be your staff and stakeholders as well. Almost all industries use market research or are the recipients of it.

When a market research firm contacts you to conduct a study, your answers will lead to improvements in the consumer or service environment around you.

Market Research is used when you have a question. It may be that you need confirmation of a decision for your stakeholders. You may be required or wish to conduct regular monitoring of customer or staff satisfaction.

Possibly a new product or service is being conceptualised and you want market confirmation regarding the product development. Alternatively, a product or service might not be performing to expectation and you want to identify how it can be improved.

Truly, the options are endless!

Market Solutions can advise clients on the need for market research. Sometimes an intuitive and common sense decision will be sufficient, other times however you may require market place testing.

Quantitative research is required when results are to be generalised to the population of interest. Quantitative research requires a valid number of representative respondents and typically applies some form of statistical analysis.

Qualitative research is an unstructured, exploratory research methodology based on small samples which provides insights and understanding into a research problem. Whenever a new market research problem is being addressed, quantitative research is often preceded by appropriate qualitative research. Sometimes qualitative research is undertaken in an attempt to gain a further understanding of quantitative research findings.

Qualitative research is more appropriate if the subject matter is sensitive or when the researcher requires an understanding of the values, emotional drives and motivations that reside at the subconscious level. However, it should always be remembered that qualitative research is not conclusive and cannot be generalised to the population of interest.

Market Solutions views qualitative and quantitative research methods as complementary to each other.

Determining the sample size is complex and requires consideration of the following issues:

* Research Method - For exploratory or qualitative research projects a smaller sample is required when compared to a quantitative research project from which conclusive results are required.

* Analysis Required - If sophisticated analysis of the data (such as multivariate techniques) is required the sample size should be larger than that required for more descriptive analysis. A larger sample is also required if the data is to be analysed at the sub group or segment level compared to projects where analysis is limited to the aggregate or total sample.

* Resource Constraints - Both budget and time constraints should be taken into consideration when determining sample size.

* Acceptable Level of Error - In general, a margin of error (confidence interval) of (5% is considered sufficient (at the 95% confidence level). For example, if 50% of respondents to a survey are satisfied, then we can be 95% confident that between 45% and 55% of the total population are satisfied. The table below displays the sample size required for a given population size and confidence interval.

Once you have identified that market research is required you need to put together a brief. The brief should provide:

Some background on the service or product;
The reason for the research;
The research objectives;
Information on the target market including population figures etc if available;
Timeline;
Budget (optional); and
Contact details.

If the question you have asked is fairly open and you cannot specifically mention objectives etc. you could meet with the research companies receiving the brief or conduct a briefing session to communicate what you require. Alternatively you may get assistance from a market research company in developing the brief.

Market Research companies should always... always, work closely with the client. Why? Because in your field, you are the expert.

Therefore a good research company should maintain continued and close contact with their client. That is why a good working relationship is essential.

You can expect to be involved in the inception meeting to finalise the research approach. You may need to provide a database to the research company which is usually required electronically. Clients will need to approve the questionnaire or moderator's guide before fieldwork commences. Finally, clients will be involved in a discussion of the research findings and recommendations.

If you are still concerned about what market research can offer you can seek help from the MRSA (Market Research Society Australia). Maybe visit their website on www.mrsa.com.au.

If we've missed any key points please feel free to share your experience by contacting us.