Process of systematically investigating themarket for a given product or service,gathering and analyzing data regarding thenumber and location of customers;customers’ interests, preferences, andbuying habits; and pricing and pricesensitivity of demand.…For the purpose of gaining insight about amarket to help a company formulate itsbusiness and marketing strategy.SOURCE: http://www.startups.co/information/go-big-dictionary/market-research-definition
Categories of Market ResearchIn a Startup Environment…PrimarilyQUANTITATIVEPrimarilyQUALITATIVEBehavioral researchIn-personsurveysSecondaryResearch1:1 interviewsFocus groupWeb or socialsurveys
When and where is it used?Concept Alpha Beta MVP Launch Scale Break-even ExitMarketvalidationMarketsegmentationPrice analysis CompetitiveanalysisCustomerresonanceRevisit from conceptfor target marketexpansionLifecycle of a StartupRevenue/A few examples above…
• Market validation• Market segmentation• Pain point articulation• Target market prioritization• Marketing planning• Competitive analysis• Price analysis• Customer resonance• Product development• Trend identification• Influencer & media landscapeWhat can market research help your startup determine?
PHASE IPlanningPHASE IIImplementationPreparationPHASE IIIFieldworkPHASE IVAnalysisPHASE VActionPlanIdentifygoals2ndaryresearchDevelop interviewquestionsRecruitintervieweesConductinterviewsCollect &summarizedataReviewfindingsDevelopconclusionsDecidewhat to dodifferentlyImplement!5 Steps to Conduct Qualitative Market Research
Research Differences: B2B vs. B2CCategory Consumers (B2C) Business Users (B2B)User Type Responder is an end-user Responder is engaging aspart of professionPopulation Larger sample population(generally)More defined targetsDecision-making Approvals come from self(or spouse?)Approvals come frommultiple stakeholdersInterview language Simple, everydaylanguage is used duringthe interviews.Knowledge of industryterms may be needed
Step 1: PlanningConfirm the questions we aretrying to answer, flesh outmethodology, approach, anddesired outcome.Activities include: Secondary research (online & founder insights) Select target audience & qualification criteria Prioritize your goals, questions to answer
Step 2: Implementation PreparationCreate all needed materials for theprimary research, build & test list ofquestions (discussion guide).Activities include: Build and test discussion guide Build target interviewee list Schedule interviews
Discussion Guide Question TypesWarm UpQuestionsE.g. Tell me about your backgroundBest for: Starting an interview!Example Use: General market knowledgeExampleQuestionsE.g. Give me an example of…Best for: Complexities - Leading questions, disruptive technologies, etc.Example Use: Purchase decisions, product developmentDirectQuestionsE.g. Where do you go for…Best for: Factual questions and/or you need a very concrete answerExample Use: Competitive analysis, influencer identificationIndirectQuestionsE.g. What are the biggest challenges you face around…Best for: Need to understand their world, want to see language they useExample Use: Pain point articulation, target market prioritization
Step 3: FieldworkActivities include:Conduct interviews (record, record, record)Review early insights midstreamSummarize interviewsThis is where the rubber hits theroad—conduct interviews!
Step 4: AnalysisActivities include:Analysis summaryBring in broader groupReview analysis & implicationsDevelop implications on ‘questions to answer’Aggregate data into findings,review patterns in the data,glean insights.
Step 5: Build Action PlanActivities include:Decide what new hypotheses & realizations you haveAgree on what to do differentlyImplement!Don’t sit on the insights—dosomething about it!
What to Remember1. Record the conversation. Don’t transcribe intoyour own words.2. Interviews won’t go as planned. Each interviewwill be different.3. Recruitment isn’t easy. Give yourself enough time,prepare.4. Don’t forget your original goals... It’s easy to getcaught up in the conversation.5. …but be open minded to new insights. Takeeverything in, but don’t jump to conclusions.
Where to go from hereApproach Pro’s Con’sDo-it-yourself Least $ expenditure Your time is preciousResponses will be morebiasedCustomeducationalworkshop*Expert guidanceMore confidence inresultsLearn to do itStill have responder biasStill takes timeTargetedsupport*Get help where youneed in mostBeware of disconnectsFulloutsourcing*Proven methodology,objectivitySpend your time wiselyMost costly in terms ofhard $’s• Always be talking tocustomers (anddocumenting it!)• Determine your highestpriority goals• A few ways to getstarted…*Services offered by Magnetude Consulting