How To Do Market Research

When comedians try out new material, they don’t ask their audiences what kind of jokes they want to hear. They try the material and, depending on the response, either dump it, fine-tune it, or leave it as is. The same principles hold true for market research. Whether you’re addressing one person or a large focus group, you present your concepts in the best possible light and then judge the response.

Effective market research

The most effective type of market research for new product introductions is qualitative research. Unlike quantitative research, it doesn’t supply numerical answers. Instead it forces consumers to make value judgments, and react on an emotional level, as you watch.

Let’s say you’re planning to introduce a vitamin-enriched soft drink. Go to a shopping centre and ask the management if there’s a facility for conducting focus group interviews. Most shopping centres will rent a suitable room for a small fee. Next, gather potential members of the focus group. Ask passing shoppers whether they’d like to participate. Tell them they will be compensated with a few dollars or a gift certificate if they’re selected.

Perhaps you want reactions from consumers who regularly buy vitamins and soft drinks for themselves and their children. You might ask screening questions such as:

Do you buy soft drinks on a regular basis? (If no, terminate interview)
What brands and types?
Do you have any children living at home?
Have you consumed any soft drinks within the last week? (If no, terminate interview)
What types?
Do you use vitamins? Do your children use them? (If no, terminate interview)
How often and what types?

Focus group

After screening and selecting the participants, assemble them in the meeting room. Make some introductory remarks, and then introduce your concept boards. Mention that the concept boards are real advertisements, so the quality of the artwork doesn’t matter. Then ask these questions about each one:

What’s the main message here? - Make sure your product communicates the position you’ve chosen.
Who is this product for and why? - They might see it as something they’d drink or something they’d offer their kids.
What would it replace? - Helps you determine whether you’ve competing with sodas, vitamin products, etc.
How often would you buy it? - You want to know whether it would become a regular or occasional purchase.
How would it fit into your lifestyle? - They might think it would improve their health or make vitamins more palatable to their kids.
What would it taste like? - You don’t want customers to think it would taste medicinal.
Would you try the product? - Especially note the response to this question. You’re hoping for an enthusiastic “yes”. A lukewarm “yes” is almost as discouraging as a “no” or “maybe”.

If you have samples of the soft drink, ask the panelist to taste it and give you their reactions. Would they buy it? How would they describe the taste? Would they order it in a restaurant? Again, the only encouraging response is an unambiguous enthusiastic one. What if the response is less than enthusiastic? Go home, lick your wounds, and find ways to improve your formula, packaging, positioning, or description of benefits. Then form another focus group and try another test.

George Tanewski is Research Fellow in the AXA Australia Family Business Research Unit at Monash University. Dr Tanewski writes extensively on family business issues and also sits on the board of a prominent Melbourne family business. For further information please contact George Tanewski on 61-3-9903-2388 or george.tanewski@buseco.monash.edu.au
First published: 20 September 2001.
Last updated: 11 November 2004.