In the first part of this article, I discussed some of the basic
techniques we use at Trendlines to conduct client-focused market research.
This article expands on the subject, discussing the dynamics of analyzing
the information gathered.
Define and Focus on the Goal
Keeping in mind that the goal of all market research is to provide clients with focused information that will help them make better business decisions, the first task is to clearly define the objectives of the specific market research project. Perhaps you are at an important crossroads in the design of a new product and need to know what your potential customers are likely to prefer. Maybe a decision has been taken to expand into new geographic regions but the most promising countries have not yet been prioritized. For start-up or young companies with new technology, learning and understanding the dynamics of the market sector they intend to enter is essential.
Once specific objectives have been articulated, develop a list
of the questions whose answers will contribute pertinent insight. (Examples:
If you are designing a new medical monitoring device, will physicians
and nurses prefer a numerical digital display or a gauge/chart showing
data relative to a norm?
Is your market space in Germany dominated
by a "gorilla"
or is it a level playing field?)
Once the
questions are ready, secondary
research should help you identify who can
best answer each question. Asking the right people the right questions
is fundamental to obtaining quality information.
Organize and Categorize the Data
Once the information gathering stages are complete, organize the data around
relevant sub-topics. For a company
contemplating new geographic markets, relevant sub-topics might include target
market size, potential barriers to entry, and profiles of local strategic marketing
partners. For the new start-up or young company, sub-topics will likely include
competing technologies, need for customer education, and acceptable pricing
options.
When all the pieces of
information are correctly categorized, it's easy
to analyze data. Of course, throughout the process, it's critical to keep
the goal and objectives and the initial questions in mind.
Make Use of Analysis Tools
There are
a variety of popular analytical tools.
One tool that is very widely used and extremely effective is the SWOT
analysis. A SWOT analysis clearly shows how
and where a company stands in relationship to the market. Too many
weaknesses and threats may indicate a problem.
Plotting the value
chain or making an industry
map plainly outline the paths a product or service may take
from its origin to its final destination. These are invaluable tools for
data analysis. Comparative charts, tables,
and graphs are other essential tools that portray the sometimes
subjective issues that are difficult quantify and illustrate.
When analyzing data, special attention should be taken to check and
cross-reference the information obtained. When pieces of information
contradict each other, a third source may be brought in or information
can be weighted for probability of accuracy.
Keeping in mind that the goal of all market research is to provide clients with focused information that will help them make better business decisions, the first task is to clearly define the objectives of the specific market research project. Perhaps you are at an important crossroads in the design of a new product and need to know what your potential customers are likely to prefer. Maybe a decision has been taken to expand into new geographic regions but the most promising countries have not yet been prioritized. For start-up or young companies with new technology, learning and understanding the dynamics of the market sector they intend to enter is essential.