At Trendlines we do a lot of market research — also known as competitive
intelligence. How do we go about gathering information and gaining
insights on far-flung markets and a vast array of products and services?
(Read part 2 of this article.)
Sources and methods of information gathering for these projects are typically divided into two types: primary and secondary. Primary research involves interacting directly with the source of information, such as face-to-face or telephone interviews. Secondary research refers to looking through published resources, including industry literature, trade journals, proprietary databases, and the Internet.
We at Trendlines have come to understand that in order to gain a comprehensive picture, as well as valuable insights into any particular market, a combination of both primary and secondary fact-finding research methods must be wisely employed.
No Cutting Corners
While it is often easy to be fooled into believing that a clear, accurate overview of a specific industry can be obtained by reading published materials (secondary resources), particularly on the Internet, this is simply not true. Take the market for kosher products, for example. Entering the keywords "kosher products" into Google elicits over 286,000 entries. Sounds like there could be a huge market potential out there, right? Well, maybe. From interviews with distributors of kosher products, we learned that actual sales volume for some market segments is not great (relatively speaking), that introducing new products into a very conservative consumer base is no easy task, and that obtaining the multiple kosher certifications required is daunting. We would never have learned all of that from research conducted exclusively through secondary sources.
Before You "Cut To The Chase"
Although it is tempting to dive right into the interviews, doing thorough homework beforehand is extremely important. When conducting interviews, we find it best to be knowledgeable about the topic, be it a new building material or an advanced surgical procedure. When we show a high level of understanding, our subject responds accordingly and we receive answers that are informative and enlightening.
Of course, before picking up the phone, we first identify the right people to interview. Sometimes this is an industry expert or analyst who has written an article we've read while researching. Sometimes, it's a top executive at a specific company (reading through the company's press releases for relevant quotes may provide the executive's name and title). Sometimes our clients know the specific person we should contact and want an independent, professional interview.
We Do Interviews
We conduct interviews rather than surveys. Although there are times when surveys are appropriate, (when quantity takes precedent over quality — branding studies, concept testing, and customer satisfaction research), we believe that well-prepared interviews provide valuable insight that can make a major contribution to the strategic decision-making process for which most market reports are commissioned. At Trendlines, we put in a lot of thought into constructing focused interview questions designed to start a conversation, rather than elicit brief yes or no answers.
A good interview is interactive and can take surprising turns. Often the interviewee introduces aspects of an issue that we (or our client) may not have previously considered.
The Great
Debate: Telephone vs. E-mail
We routinely use (and recommend) a combination of telephone and e-mail contact. Sending a brief e-mail that introduces the topic and the questions before calling works best. It allows interviewees to become familiar with the subject, understand the goals of the interview, and consider their answers. It also helps to quickly break the ice of a cold call.
As with any telephone call, there is a risk of calling at an inconvenient time. We try to reduce this possibility by emailing first and asking for a convenient time. We've also found that sometimes playing to our interviewee's ego ("I was very impressed with an article you wrote..." or "As an expert in your field...") and listening well to what they say has helped us learn quite a lot.
Some people are good at expressing themselves in writing, and from time to time we're lucky enough to receive informative e-mail replies to our queries. In fact, after many years of defending the telephone interview as the best possible option, I now believe that an e-mail correspondence can surpass a telephone conversation — provided we've contacted someone who writes clearly. A well-written e-mail leaves little room for error as compared to interpreting and summarizing a telephone interview. Sometimes an exchange of e-mails offers a chance to ask additional questions. Also e-mail responses enable interviewees to reply at their leisure, sometimes eliciting more detailed answers.
It Takes Two To Tango
No businessperson doubts the importance of market research. It takes focused primary and secondary gathering methods intertwined together to enable market research experts to acquire a complete overview. Sensitive interviews, conducted after thorough familiarization of the market through focused reading, provide the insight required to astutely analyze findings and supply management teams with an invaluable tool for making fateful strategic decisions.
Sources and methods of information gathering for these projects are typically divided into two types: primary and secondary. Primary research involves interacting directly with the source of information, such as face-to-face or telephone interviews. Secondary research refers to looking through published resources, including industry literature, trade journals, proprietary databases, and the Internet.
We routinely use (and recommend) a combination of telephone and e-mail contact. Sending a brief e-mail that introduces the topic and the questions before calling works best. It allows interviewees to become familiar with the subject, understand the goals of the interview, and consider their answers. It also helps to quickly break the ice of a cold call.
