Market Research

Field Research

Field research is the collection of raw data outside a laboratory or workplace setting. It involves observing, interviewing, or experimenting in the natural environment to gather firsthand information. This method is often used to understand real-world conditions and behaviours.

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There are three methods of field research:

• Observation: Watching and recording behaviours in natural settings without interference.
  • Example: Observing customer interactions in a retail store to understand shopping habits.
• Focus Groups: Guided discussions with a small group to explore opinions on a topic.
  • Example: Forming a focus group to gather feedback on a new product design.
• Surveys: Collecting data through questionnaires from a large group.
  • Example: Distributing an online survey to assess customer satisfaction with a service.

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Advantages of Field Research:

• Specific to Business/Product: Field research provides highly relevant data tailored to the specific needs of a business or product, ensuring precise answers from the target market.
• Information Ownership: Businesses own the data collected, which they are not required to share. This exclusivity provides a competitive advantage.
• Control over Research Process: Conducting the research in-house allows businesses to ensure accuracy and reliability, as they have direct oversight over the methodology and execution.
• Immediate, Up-to-Date Information: Field research provides current data about market conditions and consumer behaviour, ensuring that businesses have the most recent insights for decision-making.

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Disadvantages of Field Research:

• Expensive: Field research involves high costs due to the need for compiling and distributing surveys and paying interviewers.
• Time-Consuming: The process can take a long time, as it requires the development and execution of a detailed research plan. From starting the project to obtaining answers, the timeline can be extended.

Desk Research

Desk research is the process of gathering existing data and information from published sources, such as reports, books, and online resources. It involves analysing secondary data to gain insights without conducting new, original research.

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There are three methods of desk research:

• Internal Reports: Using existing data within an organisation, such as sales reports and customer feedback, to gain insights.
  • Example: Analysing past sales data to identify seasonal trends in product demand.
• Government Publications: Accessing statistical data and reports from government agencies to understand industry trends.
  • Example: Reviewing census data to understand demographic shifts in a target market.
• Internet: Using online resources to collect information on market trends and competitors.
  • Example: Searching industry reports and competitor websites to assess market positioning and strategies.

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Advantages of desk research:

• Cost-Effective: Desk research is cheaper than field research since many sources are free, which helps keep costs down.
• Quick and Easy: It allows businesses to address marketing issues faster, especially with the rapid availability of information on the internet.
• Variety of Information: Provides access to a wide range of data, enabling effective decision-making through sources like extensive government reports and online databases.
• Good Starting Point for Market Research: Desk research can provide a foundational understanding before conducting more detailed studies.

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Disadvantages of desk research:

• Inaccuracy: There is no control over the accuracy of the information, as the original conductor may have made mistakes, making it less reliable.
• Outdated Information: Data may be outdated since markets can change significantly, reducing its usefulness in decision-making.
• Lack of Competitive Advantage: Since the information is freely available, competitors can also access it, offering no particular competitive advantage.

Importance of Market Research

Business conduct market research for the following reasons:

• Cost Savings: Market research can save the business money in the long run by preventing costly mistakes and inefficient strategies.
• Risk Reduction: It reduces the risk of failure for products and the business by providing insights that guide decision-making.
• Identifying New Markets: Helps identify new markets and growth opportunities, allowing businesses to expand and diversify.
• Threat Identification: Assists in identifying potential threats, enabling businesses to prepare and respond proactively.