CHAPTER 11

Market research
WHY WE NEED MARKET RESEARCH?
Market research involves finding out needs of
customers before developing the product.
Benefits of market research
- Ability to receive detailed information about
product , market, competitors.
- Ability to find needs of current and potential
customers.
- Identifying market trends
CONTINUE
⦿ Helping with planning of marketing
campaigns
⦿ Providing information to solve business
problems.
⦿ Identifying methods for marketing such as
promotion, packaging and distribution
methods.
⦿ Identify main competitors unique product
⦿ Explain reasons for sales of products
PRIMARY RESEARCH
⦿ Primary research involves collecting new
information that did not receive before. This
is known as field research.
⦿ Methods include
⦿ Interviews
⦿ Questionnaires
⦿ Observation
⦿ Focus groups
⦿ Experiments
⦿ Consumer surveys ( Interview , Postal,
On-line)
PRIMARY RESEARCH
⦿ Collect first hand ⦿ Expensive to collect
information ⦿ Time consuming
⦿ It is essential for ⦿ Sometimes can have
specific needs of a market research
company errors
⦿ Information is only for ⦿ Sometimes ineffective
the company for target market
⦿ Can know about
customers opinion on
time

Benefits Costs
SECONDARY RESEARCH
⦿ Secondary research involves information that
already exists.
⦿ It is called desk research.
⦿ Secondary research methods
⦿ Internet
⦿ Government publication
⦿ Newspaper and magazines
⦿ Libraries
⦿ Market research agencies
⦿ Business record,Articles,Trade organizations
SECONDARY RESEARCH
⦿ Quick and easy to get ⦿ Not reliable because
⦿ Cheaper than primary main purposes are
research different
⦿ Can receive new ideas ⦿ Competitors can find
and helpful data also
information ⦿ Can receive out of
⦿ Can help to get data date information
before doing primary ⦿ Information from
research other countries can
have different culture

Advantages Disadvantages
INFORMATION IN PRIMARY
RESEARCH
⦿ When we set ⦿ When we do primary
questionnaires we can research or set
collect data and it is questionnaires we can
easy to interpret and ask opinions and
draw chart or graph. reasons. We can get
reliable feedback. But
we cannot use to
draw chart or graph.

Quantitative Qualitative
 SECONDARY RESEARCH

⦿ Costs
⦿ Government publications-
useful source ⦿ Out of date
⦿ Newspaper- easy to copy ⦿ Different purpose
⦿ Libraries- cheap ⦿ Ignore changes over
⦿ Agencies – useful source time
⦿ Business records-useful

Benefits Costs
WHY MARKET RESEARCH DATA CAN
BE WRONG?
⦿ Wrong answer of customers
⦿ Wrong recording of interviewers
⦿ Collecting small sample from population
⦿ Choosing wrong type of research method
⦿ Asking irrelevant questions at interview
⦿ Language problem
⦿ Receiving out of date data
⦿ Collecting for different purposes
CHOOSING SAMPLE SIZE
⦿ Random sampling- select randomly from a
large people
⦿ Stratified sampling- divided selected group
and sample must include from each group
⦿ Quota sampling- According to gender, age
group or income group we can select
⦿ Sample size chosen must represent the whole
population. Otherwise we cannot get correct
information.
WRING A REPORT
⦿ We can use various methods.
⦿ Tables- large data can be grouped but lack of
visual.
⦿ Pie chart- can compare but too many slices
will e difficult
⦿ Pictograms- Attractive but large numbers will
be difficult
⦿ Line graphs- good to compare but must find
appropriate scales
PRIMARY RESEARCH
⦿ Focus groups-know ⦿ Time consuming
opinions of customers
⦿ Observation- get ⦿ Expensive to hired
accurate data staffs
⦿ Test- success when
making products
⦿ Take long time
⦿ Interview- can get
feedback
⦿ Time consuming
⦿ Postal –cheap
⦿ Some ignore
⦿ Online-widespread
⦿ Junk mail
Benefits Costs
TEST YOURSELF QUESTIONS
⦿ 1. What is primary research?
⦿ 2. What is secondary research?
⦿ 3. Explain one benefit and one cost for
primary and secondary research?
⦿ 4. Explain two methods of primary research?
⦿ 5. Explain two methods of secondary
research?
CONTINUE
⦿ 6. Explain two benefits of market research?
⦿ 7. What are the two errors that can occur in
doing market research?
⦿ 8. Differentiate between quantitative
research and qualitative research?
⦿ 9. Explain two methods of presentation
methods in writing reports?
⦿ 10. Explain two methods of sampling
methods?
CASE STUDY (WORK NOW)
⦿ Kalld is a small engineering business that sell
farm tools in Malaysia. He is planning to sell
overseas. Some managers think there will be
more disadvantages trading overseas.
Marketing manager is planning to do market
research but he have low budget.
QUESTIONS
⦿ Identify and explain two reasons why market
research might be important ?
⦿ Reason 1
⦿ Reason 2
(8)
⦿ Consider advantages and disadvantages of
primary and secondary research. Recommend
which one he could use. Justify your choice
⦿ Primary
⦿ Secondary
⦿ Recommendation
(12)