Types of market research

Did you know that 45% of startups fail due to a poor market analysis? Good market research is the framework of your successful business. So, the first thing you need to do is to determine the type of your research.

🔸Primary research
This is a direct search of information about the market and its customers. Here you can use focus groups, online surveys, interviews, and so on. The aim is to collect fresh data about the problems your buyers encounter. Such research is helpful to segment your market and identify customer’s personality. It is divided into 2 segments:

Recognition studies
This subtype is more related to potential problems worth solving rather than customers’ tendencies. As a rule, recognition studies mean an open interview or small surveys.

Case studies
This subtype goes after recognition studies and is used for delving into problems or opportunities important for your startup. In case studies a business may refer to a bigger or smaller segment and ask questions to solve a particular problem.

🔸Secondary research
This is a collection of public data. It includes reports of market tendencies, statistics, and industry content. This type is especially helpful for analyzing your competitors.

Types of secondary research sources

Public sources
This is the most available material. Since the data can be freely accessed, you won’t spend much time on the research. It’s worth starting with governmental statistics.

Commercial sources
These are market reports on the industry information. It is typically created by agencies like Pew, Gartner, or Forrester. Frequently, you have to pay for such information.

Internal sources
This refers to market data your company has. It involves average sales income, the level of customer retention, and other factors you can find in your business.

🔸Qualitative research
This is a collection of primary and secondary data on the non-numerical basis. Such an analysis helps deepen the derived information.

A qualitative analysis is used for summarizing the research. By means of this type you can find out the reaction of a new target market to the product and give an explanation to it.

🔸Quantitative research
This type is concerned with numerical data. It can be used to find patterns and averages, make predictions, and generalize results.

It integrates math analysis and data to reveal important statistics about your business and market. This sort of information, derived through such ways as multiple-choice questionnaires, help you assess the interest in your company and its product/services.

Have you ever analyzed the market? Which research type did you use? Share in the comments below ⬇️