Logical procedures for conducting a successful investigation.
In this article, the different types of market research and the seven basic elements that must be taken into account in terms of methodology to achieve successful research results will be shown.
Types of market studies.
There are three basic types of market research taking into account the objectives of the research.
Research types
1. Descriptive research. 2. Investigation of cause. 3. Prediction research.
1. Descriptive research:
Descriptive research is one that seeks to clearly define an object, which can be a market, an industry, a competition, strengths or weaknesses of companies, some type of advertising medium or a simple market problem.
In a descriptive investigation, the team will seek to establish the "What" and the "Where", without worrying about the "Why". It is the type of research that generates first-hand data to then carry out a general analysis and present an overview of the problem.
2. Causal investigation:
It is that research that seeks to explain the relationships between the different variables of a market problem. It is the type of research that seeks to reach critical knots and will seek to clearly identify strengths and weaknesses explaining the "Why?" and the "How?" things happen.
Cause investigations are generally applied to identify flaws in a marketing element, such as the design of a package, an element in consumer preferences that generates a competitive advantage, a product characteristic that consumers do not like, etc..
3. Prediction research:
It is one that seeks to project values into the future; It will seek to predict variations in the demand for a good, growth levels in sales, future market potential, number of users in x time, behavior of the competition, etc. In any predictive study, elements such as the historical behavior of demand, changes in market structures, and an increase or decrease in the level of income should generally be taken into account.
Predictive research, is the most complicated and interesting and is the one that can really make the difference between the success and failure of companies in the long term, hitting the behavior of a market in the future, is clearly the best way to guarantee stability.
Regardless of the type of research, the work methodology is generally the same for any type of research.
Research methodologies: 7 basic points.
The research methodology can be summarized in the following points:
7 elements: 1. Data, 2. Sample, 3. Experiment, 4. Analysis, 5. Regression, 6. Prediction or report, 7. Simulation.
1. Data collection:
The first step will always be the collection of primary information that can serve as a basis for analysis.
There are different types of sources: own surveys, historical studies, company records, chambers of commerce, field investigations, internal company data, sales records, etc., the type of information to be collected will depend on the objectives of the research.
2. Sampling:
It is the part that is responsible for capturing the relevant data from primary sources and then analyzing them and generalizing the results to the population from which they were extracted.
The idea will generally be to obtain sufficiently representative samples to generate conclusions that apply to the entire target population.
3. Experimentation:
It consists of managing one or several market elements (price, quantity, quality, advertising) in order to generate data about market reactions. It seeks to identify the impact of each variable on market behavior.
An example is given when special promotions are made in some areas (2 for 1), to know if the impact is positive or negative for the market and the company, and given the results, apply such promotions in general or not.
4. Analysis of consumer behavior:
Research the "Why", people vary their preferences, accept or reject certain products or some brands. These investigations are generally based on behavioral and psychological factors.
5. Regression analysis:
It is applying mathematical techniques to estimate existing relationships, based on preliminary data or isolated variables.
6. Prediction or report:
It consists of estimating values (descriptive research), or predicting values (predicative research), which will be the results of the research and the basis for drawing conclusions.
7. Simulation:
It consists of modeling market results to produce artificial data and evaluate various alternatives. New technologies have even come to simulate markets through virtual means.
Regardless of the type of research, it is important to always maintain quality criteria in data collection and be careful in tabulation and analysis.
