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Unit 7: Market and Demand Analysis

a basis for what kind of questions and what audience to contact in the market survey. Notes
Understand if the marketing research plan states that information is needed for the
company’s products or services, make sure the survey asks questions about existing and
prospective customers’ needs, desires, purchases and use of the company’s products or
services, as well as similar products and services.
3. Create a list or database of the survey audience to use in the survey, unless the survey will
be a pop-up for visitors to a website. Use existing customer contact information or create
a list of prospective customers from area phone listings or purchased mailing lists.
4. Implement the survey, by mail, e-mail, on a website or by telephone contact within a set
time frame. Send it out to the audience, for example, for one week, three weeks or one
month during which time responses will be accepted. Have a cut-off date after which time
responses are no longer included. Organize the data gathered.
5. Sort and analyze the data. Start by counting the number of responses from categorized
respondents, then filter through the data for individual questions, counting the number of
like responses from the total. For example, if 550 out of 1,000 respondents said they liked
the product and 450 said they didn’t, that’s an indication of a 55 percent approval rating,
showing the company may want to invest in improving the product. Use the analyzed
data to make business decisions and recommendations.

Businesses use market research to gather valuable information in their quest for success. Market
research, for instance, can provide information and answer questions about a particular segment
of the population, customer preferences, and geographic areas. There are two types of market
research methods: secondary and primary market research.

What is the Difference between Secondary and Primary Market Research?

Secondary market research uses the information gathered from secondary sources, such as
government agencies, trade journals, or the chamber of commerce. Since the results of these
studies are not customized for a particular business, secondary market research is less accurate
than primary market research, but it can provide general information.
Primary market research, on the other hand, produces specific results tailored to a particular
business and offers a better assessment of the business’ assumptions.

7.3.1 Performing Primary Market Research

Although a professional research company can perform primary market research, it is cheaper
for a business to conduct its own study. The cost of paying a professional company usually
ranges anywhere from $3,000 to $25,000, depending on the type of research performed. In most
cases, a business can perform the research itself for significantly less. There are three ways to
conduct primary market research: surveys and questionnaires, interviews, and focus groups.

7.3.2 Creating Surveys and Questionnaires

The use of surveys and questionnaires is a good way to gather information about potential
customers. Before creating survey questions, it is necessary to formulate research questions to
clarify what business goals a survey will address. Survey questions, therefore, should be drafted
to meet the goals of the research. Common research goals may include the following: identifying
the target customers, the types of products they buy, where they shop for a specific product, and
how much they pay for a product.

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