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Primary Qualitative Market Research Methods
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Gathering Information
Primary Research
Internal Primary Research External Primary Research Internal Sources External Private Sources External Government Sources
Secondary Data Collection
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Primary Market Research
Creates data through interviews and other direct feedback mechanisms Addresses the specific technology and information needs Relies on the skill of the interviewer or questionnaire design Delivers real-time feedback to the researcher
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Listen to the Voice of the Customer
Understand what is really important Understand customer motivations Understand the buying cycle and how decisions are made Provide a sanity check to the internal perceptions of the technology
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Getting Feedback on Benefits
Expected level of quality of the product Linear performance quality - the more the better Exciter qualities can be the real sellers
may not be the obvious ones to the technology developer may become expected qualities over time
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Internal Primary Sources
Interview the inventor Brainstorm with other internal technical experts Brainstorm with the sales staff that have direct interaction with customers Beta test the technology with internal customers
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Internal Primary Research
Benefits
Interviewees have a keen understanding of the technology and its possibilities Research is fast and inexpensive Researcher gains an understanding of how the technology fits into the internal goals and product mix Can be myopic and rely on unfounded market assumptions
Drawbacks
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
External Primary Sources
Collecting data directly from the marketplace through:
Phone Surveys Mail Surveys E-mail and Newsgroups Focus Groups In-depth Customer Interviews
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
In-Depth Interview Advantages
Provides background data on the marketplace Answers specific questions Ensures the right experts are contacted Examines corporate buying behavior Identifies industry trends
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
In-Depth Interview Advantages
Follows a theme with one respondent from beginning to end Has a flexible structure that can be modified as learning occurs Topics can be expanded upon Identifies other industry players to contact
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Goals of In-Depth Interviewing
Use open ended questions and conversations to uncover:
perceptions, opinions, beliefs and attitudes
Understand the motivating buying factors Qualitative data that informs the quantitative research
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Interviewer Qualities
Good interviewing skills
good listening, clear communication
An eye for detail without getting lost in the trees Ability to appear genuinely interested Interest in the subject and the interview results
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Learn the Customers Language
Never assume you know what they are talking about Question every nebulous term Dont be afraid of asking the obvious They are the experts, acknowledge that and use it to your advantage
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Types of Responders
Yeasayers - only tell you the good
Ask them to pin down why it is good What would a benefit mean to them? Ask why a benefit or feature is not important Ask for suggestions on how to make it better Use them to identify barriers and improvements to the technology
Naysayers - only tell you the bad
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Telephone Interviewing
It can be the right tool when:
interviewing busy executives your interview population is geographically dispersed interviewing people for their knowledge speed is important
Lets you hear the voice of the customer
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Research Stages
Project definition Project execution Project analysis Project results dissemination
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Project Definition
Understand the internal dynamics of the stakeholders Understand the goal of the research Understand what decision is being made Understand the and strengths weaknesses of the company Understand the commercialization options
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Project Definition and Research Goals Exercise
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Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Effective Interviewing Techniques
Actively listen Use door openers and open-ended questions Probe Clarify Paraphrase Summarize
Reflect back Use silence Respond to nonverbal actions Adhere to the rules of the road Dont answer every question!
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Ask Open-Ended Questions
Encourage speaker to talk at length rather than enable a yes or no answer Who What When Where Why Decrease the probability of asking leading questions
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Probe
Ask additional questions, related to the speakers response to an openended question
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Summarize and Paraphrase
Briefly rephrase the information given by the speaker in the listeners own words
Shows you are listening and that you understand what the speaker is saying Helps you make sure you do understand Allows speaker to expand, but does not suggest the listener agrees Gives the listener time to
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Use Clarifying Words
Words used to clarify: Which specifically? What specifically? Who specifically
Example: My costs are down Response: Which costs, specifically?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
More Clarifying Needed!
Universals: All/None Every/Never Each/No One Always/Nothing Any/Nobody
Example: All my projects get killed. Response: All? or Have you ever had a project go through to commercialization?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
More Clarifying Needed!
Comparators: Better/Worst Under/Over Slow/Fast Early/Late Ahead/Behind Less/More Example: Our software is better. Response: Better compared to what?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Primary Market Research Tips
Techniques to get responses
Emphasize benefit to responders of their input Know who you want to talk to Offer pre-market use of the technology Offer beneficial items for responding Allow time for the research to be done Conversations are good
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
External Primary Market Research
Benefits
Tailored to company needs Real time feedback Answers specific questions Feedback on specific products/services Can be expensive and time consuming Strategy/product direction may be publicized
Drawbacks
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
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Reading Assignment Takeaways
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Good Ideas are a Dime a Dozen
Agree?
Why or why not
Is technology or the business concept irrelevant to the success of a business?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
First Kick
Ideas are commodities First mover advantage is not enough Competition exists (if you are lucky)
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
What Sets Winning Teams Apart?
Execution Intelligence
Domain knowledge Fast growth scar tissue Experience in hypercompetitive markets Risk management- anticipate and adapt Comprehensive experience profile Leadership competence
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
You Dont Know Your Customer as Well as You Think You Do
If you have an experienced management team, dont you know your customer? How do I get to know my customer? If I build it, wont they come?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Second Kick
Market validation
Know your customer Know what is important to the customer Make sure you are solving the right problem Find the quality influencers, get the product right
Explore the pain
Envision the solution
Establish credibility
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Get the Product Right the First Time
Why is getting it right the first time so important? How do you improve your chances of getting it right? Customers change, dont develop your product in a vacuum
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System
Other Points about Adams
Do you need a $1 billion market? 100 contacts in customer validation vs. 10 in Quicklook
Whats the difference?
Copyright 2010: Mr. Brett Cornwell
Mays Business School
Texas A&M University System