Market Research

Marketing research is a formalised means of collecting, analysing and interpreting information to be used in helping making marketing decisions.

Market Research should be thought of as a lamp-post. Without light you are fumbling around in the dark .

However. it should not be used as a drunk may use the lamp post – to prop himself up .

 Nor should it be used as a dog may use a lamp post .

 This information should be accurate.  accessibility.  its preferences.  target customer.  trends. This information tells you about:  your potential market.  convenient time and  plans. and reliable to help you make the right business decision.  income.  market and  competitors.  competition.  prices. .  habits.Market Research How to collect certain information about:  your customers.

price and service they offer? How I differentiate my business from my competitors? What types of service do my customer prefer? What types of advertising attract my customers? What is the market price and how I can change my price accordingly?     What are the market forces that will affect my business? Where should I locate my business? How much profit can I get at different locations and times?      .Important questions  What kind of business should I do? What is the demand for my business? Who are my customers?  Who are my competitors and what kind of product.

location and service in the market? And how I adapt them? What are my weaknesses and strengths in my business compare to my competitors? How I can differentiate my business and make it unique?     Should I change and redirect my advertising campaign according to the recent situations? How can I change my customers’ spending habits? How can I expand my business with minimum cost?   . product.An Existing business  What are the new trends. time.

 Make your questions only in your subject matter. Make sure your questions do not offend anyone. understandable. Give enough time answer. Ask questions in different repeated ways. Ask questions that do not have more than one meaning. Be courteous and friendly when asking people to participate in your survey. Customize your questions to encompass more than one group of people. male/female. and clear.How to design a questionnaire  Keep your questions very short. so you minimize missing data. Ask questions that can be answered easily. open/closeended .   Ask direct questions. Be honest with the intent of the questionnaire.        .

Characteristics of the targeted consumer population and env. context of the problem . Defining the general problem Explore a new thinking Improving current performance 2.2 steps in designing the research 1. Identify specific components of the research task.

data collection method and selection of subjects.  2.2 Approaches to Research 1.  Exploratory research is conducted because a problem has not been clearly defined. Problem. It helps determine the best research design.solving research .

Market Research .

Secondary Research .

etc. till data.loyalty cards. .Internal Sources     Company Accounts Internal Reports and Analysis Stock Analysis Retail data .

etc. .External Sources       Government Statistics Commercial Data Household Expenditure Survey Magazine surveys Other firms’ research Research documents – publications. journals.

Sampling Methods .

Market Research   Sampling Methods: Random Samples – equal chance of anyone being picked May select those not in the target group – indiscriminate  Sample sizes may need to be large to be representative  Can be very expensive  .

Market Research  Stratified or Segment Random Sampling Samples on the basis of a representative strata or segment  Still random but more focussed  May give more relevant information  May be more cost effective  .

Market Research  Quota Sampling Again – by segment  Not randomly selected  Specific number on each segment are interviewed. etc.  May not be fully representative  Cheaper method  .

Market Research  Cluster Sampling  Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population Sample selected from multi-stage sub-groups Samples developed from contacts of existing customers – ‘word of mouth’ type approach!  Multi-Stage Sampling   Snowball Sampling  .

Primary Research .

Market Research  Primary Research      First hand information Expensive to collect. open – useful information but difficult to analyse . analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question – closed – limited information gained.

when and how! . how Qualitative – more detail – tells you why.Market Research    Quantitative and Qualitative Information: Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week .doesn’t tell you why. when.

Purpose .

Globalisation makes market information valuable (HSBC adverts!!) . planning and strategic development May help to reduce risk of new product development Communicates image.Market Research  Advantages of Market Research      Helps focus attention on objectives Aids forecasting. vision. etc.

Market Research  Disadvantages of Market Research      Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and ‘gut feeling’ Always a problem that we may never know enough to be sure! .

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