Market Research and Sales Forecasting Ch 8
It is the process of collecting and analyzing data related to marketing and consumption of goodsand services.
Descriptive: - what is happening in the market, trends and taste of consumers
Predictive: - what will happen in the future. Changes in market etc.
Exploratory: - About the possibilities in the market for launching a new product.
Areas of Research
– Identifying market trends, size, growth etc.
Competition – Strengths and weaknesses of competitors and their strategies about a particular product.
Promotion – To check the effectiveness of promotional activities.
Product – Different product alternatives and the requirements of consumers.
Distribution – Decisions about suitability of retail outlets.
Pricing – Strategy about the pricing of the product.
Types of Marketing Research
Primary Research / Field Research / First Hand Research
It is the original data gathering from target market by researcher.
Methods of Primary Research
In this type, researchers find out the number of potential consumer (Market Size).
Quantitative Research Techniques
Survey Method – A survey consists of gathering data by interviewingPeople.
Observational Method – Data is collected by observing a person that howmuch time he takes to decide whether to purchase the product or not.
Experimental Method – Researcher performs experiments by changing oneaspect of the product. e.g. changing the price and observing the results.
Test Marketing – A limited quantity of new product is produced andlaunched in a limited geographical area and then on the bases of resultsdecisions are taken.
In this type, researchers find out the motivational factors behind the consumer buying habits. This type is most important because all decisions for price, promotion, place, product etc are depend on these results.
Qualitative Research Techniques
Main technique is
with individuals or groups.
Secondary Research / Desk Research
Desk research includes the use of secondary data which has been already gathered by someone for research. Secondary data is available on Internet, Libraries, Govt. Departments, different surveyrepots etc. Advantages of secondary research include cost benefit as it is available at little or nocost. It clearly indicates whether we should go for the expensive primary research or not.
Advantages and disadvantages are on page 144, table 8.1
Benefits of Marketing Research
Providing link with outside the business.
Important issues for market researchers