Unit 4: Market Need Analysis

Lesson 2: Market Research Methodologies

Contents
Engage 1
Introduction 1
Objectives 1

Explore 2

Explain and Elaborate 3

Market Research Methodologies 3
Choosing the Right Market Research Methodology 4
Qualitative Research Methods 5
Quantitative Research Methods 7

Extend 8
Activity 8

Evaluate 9

Wrap Up 11

Bibliography 12
Unit 4.2: Market Research Methodologies

Engage

Introduction

Fig. 1. Interview

Conducting market research doesn’t stop at analyzing the needs and demands of the
market. It involves complex processes that an entrepreneur must learn how to undertake.
The various methods as to how market research is to be conducted will depend on the goals
of the desired business. Find out the different options and costs of carrying out market
research as you engage yourself throughout this lesson.

Objectives
In this lesson, you should be able to do the following:
● Learn the different methodologies used in market research.
● Apply the various market research methodologies in different business contexts.

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Unit 4.2: Market Research Methodologies

DepEd Competencies
● Screen the proposed solution based on viability, profitability, and customer
requirements. (CS_EP11/12ENTREP-0b-c-5)
● Select the best product or service that will meet the market need.
(CS_EP11/12ENTREP-0d-6)

Explore

10 minutes
Guide Questions
Answer the following questions briefly and coherently:

1. What for you is the best approach in analyzing the needs of the market?

2. What considerations must be taken in assessing the viability of a product or service?

3. How important is market research prior to executing the desired business?

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Unit 4.2: Market Research Methodologies

Explain and Elaborate

Market Research Methodologies

Fig. 2. Market research

It is true that vital information related to the market can only be obtained by conducting
market research. Being able to conduct proper market research would enable the
entrepreneur to implement smarter decisions on his own. But in order to do this, there are
several ways that will allow the entrepreneur to gather information directly from the
consumers. These market research methods are used to get the type of information about
the consumers, the market, and even the competitors, which will greatly influence the
decisions of the entrepreneur.

Market research methodologies are advantageous for any business because these tools are
effective at tapping into the actual needs and wants of the target market. Further, they
encourage a healthy exchange of information with the consumers by primarily knowing
their likes, preferences, and even their dislikes.

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Unit 4.2: Market Research Methodologies

Why are market research methodologies

significant in building a business?

Choosing the Right Market Research Methodology

Being able to choose from various market research methods does not necessarily imply the
need to pick them all. The methodologies to be chosen would depend on the objectives of
the business and the cost of gathering data. In picking the right method available, the
following points must be taken into account:

1. Pick a method that complements well with the business’ objectives.

The option to be chosen in gathering data must resonate with the objectives of the
business in order to save time and money. The methodology employed must allow
the entrepreneur to collect information that will support the aims of his desired
business.

2. Assess the information that is already available.

Research and evaluate pieces of information that are already available on-hand or
online. From there, identify the gaps that still need to be filled by choosing the right
market research methodology.

3. Compare the various market research methodologies.

When choosing the most appropriate methodology, making a comparison is helpful.
Evaluate the usefulness or advantages of each method and identify which of them
would be the most beneficial and least costly to the proposed business.

4. Calculate the total time for collecting and organizing research data.
The amount of time to be spent in order to produce the necessary information will
always vary according to the chosen market research methodology. Even though
market research is an integral part of the implementation of a business, such must
be done with minimum wasted effort and time.

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Unit 4.2: Market Research Methodologies

Review
Tips in choosing the right market research methodology:
● Pick a method that complements well with the business’ objectives.
● Assess the information that is already available.
● Compare the various market research methodologies.
● Calculate the total time for collecting and organizing research data.

Qualitative Research Methods

Qualitative research is an important approach towards understanding the reasons behind
the purchasing behavior and decisions of the consumers. This type of data-gathering
research method is performed through observation techniques and unstructured
questioning. It gives answers to the whys and hows of the decision-making processes of
various consumers.

Interviews
Interviews are conducted in order to give entrepreneurs or businessmen the chance to
deeply evaluate the areas of interest of the individuals they want to target. This method
aims to give the precise characteristics of the audience that entrepreneurs want to
understand, which will consequently help them in the development phase of their products
and/or services.

Example
Basic Customer Interview Questions

Situationer
An entrepreneur is planning to provide a ride-hailing service in a province through the use
of a mobile application. The target market of this project consists of students, employees,
professionals, and other individuals seeking a convenient mode of transportation. The
following questions were asked to the respondents through interviews:

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Unit 4.2: Market Research Methodologies

Questions Objectives

How do you feel about the current This question aims to understand the actual
transportation situation in your province? feelings of the respondent towards the
transportation situation in his or her area.

What mode of transportation do you take to This question aims to know the type of
and from school or your workplace? transportation that is primarily used in the
province.

How much do you spend on transportation This question aims to know the estimated
monthly? cost that an individual would likely pay for
his transportation.

What changes or improvements would you This question will help the entrepreneur in
like to see in your province in the aspect of addressing the demands and needs of his
transportation? target market.

Tip
In conducting interviews, questions to be asked must be those that
are relevant to the implementation of the proposed business.

Focus groups
Focus groups are usually conducted personally by entrepreneurs or market researchers.
This type of methodology is meant to bring about a comfortable environment while
discussing with the consumers their feelings towards a specific product or service. Focus
groups are helpful in product testing and evaluation, advertorial and imagery assessments,
and business conceptualizations.

Online focus groups

Similar to in-person focus groups, online focus groups are likewise performed to
understand the thoughts and feelings of consumers towards a specific product or service,
except that they are more convenient and cost-efficient to perform. In order to take
advantage of this methodology, the entrepreneur must utilize the different social media

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Unit 4.2: Market Research Methodologies
sites to be able to observe the behavior of the consumers.

Observations
The observational approach of conducting market research comes in different types. The
most common examples of observational research are usability testing, in-store
observation, and mystery shopping. The primary advantage of adopting this methodology is
that the entrepreneur can perceive the actual behavior or spending pattern of any
consumer, as opposed to a user-reported behavior. Any researcher or entrepreneur can just
simply watch consumers doing their grocery shopping routines in action.

Remember
Qualitative research is a type of data-gathering research method
performed through observation techniques and unstructured
questioning.

Quantitative Research Methods

Quantitative research obtains the information that can be easily and quickly counted and
statistically analyzed. This method enables the entrepreneur or the market researcher to
test and validate the best course of action to be taken. The methodologies provided under
this classification aim to ask the consumers for their opinions or feelings in a structured
way.

Survey research
Surveys are a very popular method in gathering primary data. This type of market research
methodology enables the entrepreneur to formulate questions that cover a variety of topics.
Surveys are usually composed of open-ended and closed-ended questions depending on
the needs of the project. It is highly recommended to use open-ended questions sparingly
so as not to cause a lot of inconvenience to the respondents. Too many open-ended
questions would give out invalid results because of the minimal responses taken from the
respondents.

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Unit 4.2: Market Research Methodologies

Experiments or Field Trials

This market research approach involves a scientific approach that includes the testing of
specific variables. Tests can be performed in controlled environments or under natural
settings. One example could be a businessman making two distinct packaging options for
the consumers. In order to find out which of the two would bring about greater sales
revenue, the businessman will deliver each product to selected test market stores where the
individual sales performance will be accurately measured.

Extend
Activity
Think of any business that you would want to pursue. List down the three most essential
market research methodologies that you will use during the market research phase of your
proposed business, and give the reason/s why such methodology is important.

Proposed business: ____________________________________________

Methodology Reason/s

1.

2.

3.

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Unit 4.2: Market Research Methodologies

Guide
● Choose only those methodologies that are highly beneficial for your proposed
business.
● Under the right column, the reasons given must focus on the usefulness or
relevance of the methodology chosen.

Evaluate

A. Answer the following questions based on your

understanding of the lesson, as discussed above.

1. What are market research methodologies?

2. What is the relevance of resorting to market research methodologies in

entrepreneurship?

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Unit 4.2: Market Research Methodologies

3. What is the difference between a survey and a questionnaire?

4. How would you define “focus groups?”

5. What is the main idea behind qualitative research methods?

B. Discuss five pros and cons of using interviews as a market

research methodology. Provide your answers in the table
provided on the next page.

Pros Cons

1.

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Unit 4.2: Market Research Methodologies

Pros Cons

2.

3.

4.

5.

Wrap Up
___________________________________________________________________________________________

● Qualitative research is a type of data-gathering research method which is

performed through observation techniques and unstructured questioning.
● Quantitative research refers to information that can be easily and quickly counted
and statistically analyzed.

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Unit 4.2: Market Research Methodologies

Market Research Methodologies

___________________________________________________________________________________________

Bibliography
Dollingner, Marc. Entrepreneurship: Strategies and Resources 3rd Edition. New Jersey: Prentice
Hall, 2003.

FlexMR. “Modern Market Research Methods: A Comprehensive Overview.” Medium.

Accessed on April 10, 2020.
https://medium.com/@FlexMR/modern-market-research-methods-a-comprehensive-
overview-a0b269356667.

Kotler, Philip & Gordon McDougall. Marketing Essentials. Prentice-Hall Canada Inc., 1985.

Kuratko, Donald. Entrepreneurship: Theory, Process, and Practice. Taguig: Cengage, 2017.

Petrescu, Maria, and Brianna Lauer. “Qualitative Marketing Research: The State of Journal
Publications.” The Qualitative Report, September 2017. Accessed on April 10, 2020.
https://nsuworks.nova.edu/tqr/vol22/iss9/1/.

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