Day 48 in MIT Sloan Fellows Class 2023, New Enterprises 2, Primary Market Research
What is Primary Market Research
In 24 steps in the disciplined entrepreneurship program, the first step is market segmentation.
We brainstorm potential markets and get more insights about segmentation.
WHO IS YOUR CUSTOMER? WHY THEY PAY FOR US?
are critical questions in this step.
The goal of PMR is to understand your customer in all dimensions: rationally, emotionally, and economically. socially, culturally and more. This is holistic understanding of the customer, not a number.
Remember this phrase by Elaine Chen.
The customer is the expert of their problem and you are the expert in finding a solution to that problem.
Primary market research has a significant role in this step. This is a great opportunity to talk directly to your end users and you need to be extremely careful about removing biases and getting deeper/honest insights from customers.
Example: Phantom Case
Phantom Premium Haptic Devices
For instance, this technology(sensible technology which realizes virtual "touching" experience by machine) has the following market segmentations.
Tips for Primary Market Research
- Start from Qualitative research
- Don't believe a secondary market research and just be disappointed at that it already exists
There are 7 processes you need to follow.
- Write out the goals and objective of the research and research methodology
- Define recruitment criteria for interviewees
- Develop a recruitment questionnaire
- Develop supporting content(discussion guide, online survey)
- Recruit subjects
- Run the research program
- Digest results, next steps
Five biggest obstacles to good primary market research
- Lack of structured process
- Not properly executing the designed process : Don't skip talking with others!
- Confirmation bias: Don't accept only information you confim. Avoid IKEA effect.
- Selection bias: Don't select "biased interviewers" Select good representation.
- Social acceptability bias: Don't choose "too closed" friends or families.
