2. Got an idea? You need market research!
• Feedback on a new product or service
• Exploring ideas you haven’t thought of
• Planning initial marketing
• Revamping your marketing approach
• Considering product
changes/improvements
3. But what kind of research do you need?
• Primary?
• Secondary?
• Quantitative?
• Qualitative?
4. The best research combines hard research
data with focus groups, surveys, census
data, etc.
Maybe all of the above!
5. Focus Groups
• Small groups of 8-15 people
• Focuses on series of pre-determined
questions on 3-5 general areas
• Held in a neutral location
• Usually last for 2-3 hours
• Run by a qualified moderator
Results are subjective and
qualitative.
6. Focus Group Advantages
• Group setting allows participants to share their
insight & be candid
• Subtle information can be learned from actions,
body language and other non-verbal
communication
• Possible to determine the perception people
have about you, your business and/or your
products and services.
• You have an opportunity to get input from
people with diverse backgrounds and
perspectives all at once.
7. Disadvantages
• Time needed to research questions, find
participants and plan the overall process.
• You need a professional moderator and note
taker with knowledge of your product or service.
• You must ensure that your biases or those of your
moderator don't alter or invalidate the results.
• Can be costly
8. You want some feedback…
so who are you going to call?
10. What will you learn?
Most focus groups center on the following
topics:
Strengths of your proposed product/service
Weaknesses
“First impressions” of name, logo, value, etc.
Perceptual map of competitors
Colors/shape/design of packaging
Price point(s)
11. Finding Participants
• Determine your target market—age, gender, interests,
socio-economic background, etc.
• Determine where to find them
• Establish a large pool of possible participants
• Get creative—advertise for them,
parking lot surveys, make a deal
with an organization, etc.
12. Find a professional moderator
• Must understand your product or service
(will sign an NDA)
• Helps you determine questions
• Provides advice on finding participants
• Moderates the group & keeps it on purpose
• Ensures that all relevant information is captured (note
taker)
• Provides you with a written report in 7-10 days
13. Use a professional moderator
• Do not moderate or run a focus group
involving your own product or service.
• Do not ask friends or relatives to be participants or to
moderate the group.
• You should not be a participant or in the room.
• It is impossible to be unbiased—and worse, you can bias
the group’s responses!
14. Find a place
• Neutral territory—
not your home or office!
• Comfortable
• Provide refreshments
(no alcohol before the group
does its work!)
15. How much does it cost?
• Moderator - $150/hour including prep time
and report preparation
• Cost to recruit participants
• Pay for participants ($50-$100)
• Note taker
• Room Rental
• Refreshments
16. What to Expect
• Professionally written, detailed
report in 7-10 days
• Centered on your issues/questions
• Suitable for venture capitalists
or bankers
• Becomes part of your business
& marketing plans
17. Final Thoughts
Focus Groups are not a substitute for hard
data.
The best research combines hard research
data with FG surveys, census data, etc.
FG research alone better than no research
but use caution in interpreting the results!