9.4 Market Research
Essential idea:
Market research is any organized effort to gather information about markets or customers.
Nature and Aims of Design
Nature of Design
Market research often identifies how to improve the product, service or system and increase its chance of success within a particular sector or segment. The price a user is prepared to pay is usually determined through market research. This in turn sets an upper limit of cost to the design and production of a potential product, service or system. Market research has a crucial role in determining the constraints a designer has to work within. (1.5)
Aims
Aim 1: Often designers will work on projects that have new and radically unfamiliar contexts. This will deepen their understanding of market research, equipping them with a range of tools and skills that they can employ in many areas of life and empowering them as lifelong learners.
Guidance
As DP Design Technology student you should:
Understand the purpose of market research
Understand how consumers’ reaction to technology and green design can impact on design development and market segmentation
understand and apply market research strategies
Concepts and Principles
Market Research
Market research is an essential aspect of designing successful products. Careful and through market research helps designers determine the market potential and economic trends, as well as the key characteristics of their target market. All of these factors clarify the constraints that the designer must consider.
Types of Data
Designers use a range of data types to conduct their research. Each type of data has applications, advantages and drawbacks; As such, it is import to understand the differences, and how they can be used to drive design decisions.
Qualitative and Quantitative Data
Quantitative Data is data that be recorded as a number of value. This is data that measures the physical properties of a design, or user's needs or performance requirements.
Qualitative Data is data abut the quality or aspect of the thing being measured. Usually, for designers, this is data about how something looks or feels, what people think or feel about it, or what people’s opinions are.
Primary and Secondary Data
Primary data is collected from first-hand experience and observation. Examples include:
user surveys
user trials and observation
Secondary data has been collected by others.
ergonomic tables and databases
demographic data
Purpose of market research
Market research helps the designer build an understanding of the market and users, with the goal of identifying a need and developing the best possible solution.
Market research might be done to understand the following aspects of the design context:
Determine the market need for a product by understanding the needs of the users.
Determine the market potential for a product, and at what stage in the product lifecycle it should be introduced.
Identify promotional strategies that would be best suited to the target audience.
Collect demographic data to understand the age, gender, location, etc., of the target audience. By understanding key demographic data about the audience, the designer can focus their design.
Analyzing existing products can provide valuable information about how the design opportunity is being met. More importantly, careful analysis can reveal aspects of the design opportunity that are not being met by the existing designs. Analysis also provides information to guide how the produce is being designed and targeted towards different demographics, price points, etc.
Collect information about consumer trends and how these might influence the direction of the design. For example: greater consumer awareness of plastics in the ocean may indicate a need for a product that mitigates or eliminates plastic consumption or addresses the problem of plastic in the ocean more directly.
Consumer's reactions
Market research can also help reveal consumers reaction to a design. Much in the way movies are screened to select audiences before their official release in order to understand how best to introduce or make the movie, designers can preview or trial products with consumers to determine their reactions.
Certain concepts, such as sustainability and technology, can elicit a range of reactions among consumer groups. In Topic 8, Sustainable Consumption, we discuss the differences between eco-warriors, eco-fan, eco-champion, and eco-phobe. Being aware of these different reactions can allow a designer and their marketing team to target the appropriate audience.
With regards to introducing technology to target audiences people can be grouped into three broad categories:
Technophile: Someone who is eager to try new technology. These are the early adopters.
Technocautious: Someone who needs to be convinced of the benefits of a new technology before adopting it. They need to see and understand the benefits before embracing it. These are the majority or late majority
Technophobe: Someone who resists new technology. they do not want to change. These are the laggards.
Market Research Strategies
Market research strategies are varied. For the designer, they should select a range of strategies that are appropriate and relevant to their design context. They should also consider the advantages and disadvantages of each strategy, in particular cost and time.
For our purposes, we can categorize market research into the following groups:
Review these strategies to learn how they are applied to market research