To Count or Not to Count -

That is the Question

Ever wonder what your customers - the folks who decide to buy your products or those who actually use your products - really think about your company, the competition, or new product ideas?

Ever think you would have a greater chance of success in the market place if you knew a little bit more about what these customers want, what makes them tick, and what would delight them and make them loyal to your company?

Then the time has probably come for you to do a little market research.

The May 04 edition of Mosaic Marketing Management Marketing Tips covers how marketing research can help answer some of these questions and point you in the right direction strategically.

In this issue we're going discuss the two basic types of market research (quantitative and qualitative) and the factors that can help you decide which type is best suited to your information needs.

Count Me In for the Facts

Quantitative research is all about numbers and facts. It involves sampling and talking to large numbers of respondents (100 or more) through the mail, over the Internet, or through phone surveys to discover "what" is happening in the market.

And it is used when you want to project results - with confidence - to an entire group of customers or potential customers.

Some of the most popular information gathered through quantitative research methods include:

• market share
• market size
• composition of an installed base by equipment type and brand
• awareness levels
• purchase intent
• level of demand

These numbers can be gathered just one time to better understand current market conditions or over time (as in tracking studies) to understand past changes and predict future trends.

Quantitative research's best feature is its ability to reduce risk. Given statistically valid sample sizes we are more confident in our knowledge, which leads us to better decisions affecting our future. For a deeper discussion on sample size, confidence levels, and confidence intervals, click here.

Never Count My Feelings

Qualitative research is all about feelings and "warm fuzzies." It involves talking to smaller numbers of people in focus groups, one-on-one conversations in person or over the phone, or even through customer advisory boards. The information gathered is directional only, and should never be quantified and used for projections. Don't make a "go" or "no go" decision based soley on qualitative research.

Qualitative research is used when you want a deeper, richer understanding of the "why's/why not's" and "how's" of the market.

Some of the most popular information gathered through qualitative research methods include:

• reaction to new product concepts (Show and Tell plays out well in qualitative settings)
• reaction to new advertising messages
• feature set/benefit trade-offs
• feature set/pricing level trade-offs
• reasons for market preferences
• perceptions of competitors

This kind of information is generally gathered at one point in time to better understand a particular issue, yet customer advisory boards that meet repeatedly over time certainly do allow for some "tracking" of issues - in its loosest sense - to take place.

Qualitative research's best feature is its ability to help us understand the reasons behind the numbers. This richness of information gives marketers a lot of insight into how customers really think. And isn't that what we wanted all along?

Using Both Types of Research......See below!

Depending on your information needs and the composition of the group of customers you want to talk to, you may choose to use one or both types of market research.

A typical marketing research protocol is to...

1. Conduct qualitative research first to test theories, uncover key issues, and learn the language of the target market
2. Conduct quantitative research to prove or disprove theories or to validate market size and other key findings
3. Follow up with qualitative for further directional input on future tactics.

Again, what you do depends on what you want to learn and who can tell you that information.

Facts and Feeling

Even in the rough and tumble world of business-to-business marketing both facts and feelings "count." How you gather that information and how you use it is what matters most.

Need help understanding how these types of research can help you and your company gain ground in the market place? Give me a call - I've got lots of experience in this area.

Remember, Mosaic creates customers for business-to-business companies through specific project work, on-going retainer assignments, and marketing coaching sessions.

Until next time.....

Rosemary Walter
847-483-5018
Rose1Walter@MosaicMM.com

Quote of the Month

© 2005 Rosemary Walter, all rights reserved. You are free to use material from Mosaic's Monthly Marketing Tips in whole or in part, as long as you include complete attribution, including a live website link. Please also notify me where the material will appear. The attribution should read:

"By Rosemary Walter of Mosaic Marketing Management, Inc. Please visit Rosemary's web site at http://www.MosaicMM.com for additional marketing articles and resources on marketing for business to business companies."