ENTREPRENEURSHIP

BY: JOVELYN L. AMONCIO, LPT

COMPETENCIES

At the end of the lesson, the learners will be able to:

Validate customer-related concerns through: Interview
Focused Group Discussion (FGD); and Survey
CS_EP11/12ENTREP-0d-g-9
COMPETENCIES

At the end of the lesson, the learners will be able

to:
• Explain what market research is
• Understand the meaning of data gathering
• Appreciate the importance of market research
MARKET
RESEARCH
BY: JOVELYN L. AMONCIO, LPT
1. IT IS THE MOST COMMON
WAY TO GATHER PRIMARY
DATA WITH THE USE OF
QUESTIONNAIRES OR
INTERVIEW SCHEDULE.
1. IT IS THE MOST COMMON
WAY TO GATHER PRIMARY
DATA WITH THE USE OF
QUESTIONNAIRES OR
INTERVIEW SCHEDULE.

A: SURVEY
 2. IT IS THE TRADITIONAL
METHOD OF DATA COLLECTION
WHICH IS NORMALLY DONE
PERSONALLY WITH THE
RESPONDENTS.

SONAPELR WINTERIVE
 2. IT IS THE TRADITIONAL
METHOD OF DATA COLLECTION
WHICH IS NORMALLY DONE
PERSONALLY WITH THE
RESPONDENTS.

A: PERSONAL INTERVIEW
 3. IT REFERS TO THE PROCESS OF
GATHERING, ANALYZING AND
INTERPRETING THE INFORMATION
ABOUT THE PRODUCT OR THE
SERVICES TO BE OFFERED FOR SALE
IN THE MARKET.

KTARME CEAHRSER
 3. IT REFERS TO THE PROCESS OF
GATHERING, ANALYZING AND
INTERPRETING THE INFORMATION
ABOUT THE PRODUCT OR THE
SERVICES TO BE OFFERED FOR SALE
IN THE MARKET.

A: MARKET RESEARCH
 4. A FOCUS GROUP IS A RESEARCH
METHOD USED TO COLLECT OPINIONS
AND FEEDBACK FROM A GROUP OF
PEOPLE ABOUT A SPECIFIC PRODUCT,
CONCEPT, OR SERVICE.

COFSU GPROU SSDIOSUNCI

 4. A FOCUS GROUP IS A RESEARCH
METHOD USED TO COLLECT OPINIONS
AND FEEDBACK FROM A GROUP OF
PEOPLE ABOUT A SPECIFIC PRODUCT,
CONCEPT, OR SERVICE.

A: FOCUS GROUP DISCUSSION

5. PROBABLY ONE OF THE BEST WAYS
OF GATHERING DATA ABOUT
CUSTOMERS IN THEIR NATURAL
SETTING WITHOUT HAVING TO
INTERACT OR TALK TO THEM.

VIONTAOBSER ECHIQUETN
5. PROBABLY ONE OF THE BEST WAYS
OF GATHERING DATA ABOUT
CUSTOMERS IN THEIR NATURAL
SETTING WITHOUT HAVING TO
INTERACT OR TALK TO THEM.

A: OBSERVATION TECHNIQUE
 ENTREPRENEUR,
KNOW THY MARKET WELL!
BASIC QUESTIONS IN MARKET
RESEARCH

•Why- purpose and objective

for conducting the market
research.
•What- determines the scope and
the limitations of the market
research to be conducted.
• Which- determines which segment
of the market must be studied; this
must be the market segment that
the entrepreneur is eyeing.
•Who- identifies who among the
members of the selected market
segment will participate in the
market research.
• When- determines the time and timing
of the research. This is critical for
entrepreneurs whose product or service
will be offered to a time-constrained
market such as office workers.
•Where- pinpoints the relevant
location of the market research.
•How- determines the
methodology to be used for the
market research.
 MARKET RESEARCH METHODOLOGIES

• Important market information can only be obtained by

conducting a good market research.
• The more the entrepreneur knows about his or her relevant
market, the more customers can be properly segmented and
reached, products can be positioned, brands can be
promoted, prices can be set, and locations can be
pinpointed.
 SALES DATA MINING
• Using the information from case example 3, the data can
logically be arranged chronologically from 7 am to 6 pm
otherwise known as data array. The data can be further grouped
into intervals of two, three, or four hours. On the other hand,
the hotdog customers can be further classified into male and
female customers. They can be sub-classified into small
children (12 years old and below), teenagers (13 to 19 years),
and adults (20 years and above).
CASE EXAMPLE 3: SELLING HOTDOGS

A researcher observed and recorded the

following data in a store selling hotdogs.
1. Boy, aged 10, bought two hotdogs at 2 pm.
2. Girl, aged 8, bought one hotdog at 4 pm.
3. Man, aged 26, bought three hotdogs at 1pm.
CASE EXAMPLE 3: SELLING HOTDOGS

4. Couple, man and wife, aged about 30,

bought two hotdogs at 8 am.
5. Boy, aged 14, bought five hotdogs for
friends at 3 pm.
6. Three girls, aged about 18, bought six
hotdogs at 6pm.
7. Girl, aged 5, asked mom to buy her one hotdog
at 11am. Mom aged 27, bought one for herself.
8. Twin boys, aged 7, asked their older brother to
buy them four hotdogs at 12 noon. Older brother,
aged 14, bought two hotdogs for himself.
9. Two teenagers, boy and girl, aged about 15,
bought two hotdogs at 1 pm.
10. Five children (two girls, three boys), about
nine years old, bought five hotdogs at 12 noon.
11. Man, aged 27, bought two hotdogs at 9am.
12. Woman, aged 30, bought three hotdogs at
10am.
13. Three boys, aged 13, bought five hotdogs at
4pm.
TABLE. 3.1. HOTDOG SALES ACCORDING TO TWO-
HOUR TIME INTERVAL

Time Hotdogs Bought

7-8am 2
9-10am 5
11-12nn 13
1-2pm 7
3-4pm 11
5-6pm 6
 TABLE 3.2. HOTDOG SALES SUMMARY

Time Hotdogs Male Female

Bought
12 below 13-19 20 above 12 below 13-19 20 above
7-8am 2 1 1
9-10am 5 2 3
11-12nn 13 7 2 3 1
1-2pm 7 2 1 3 1
3-4pm 11 10 1
5-6pm 6 6
TOTAL 44 9 13 6 4 7 5

13 20 11
HISTOGRAM
Series 1
7

0
7-10 AM 11-2 PM 3-6 PM

Series 1
HISTOGRAM OR BAR GRAPH

• Consists of a series of rectangles or “bars”.

Each bar is proportional in width to the
range of values within a class and
proportional in height to the number of
items falling in a class.
FREQUENCY POLYGON

6 6

4 4

3 3

0
7-10 AM 11-2 PM 3-6 PM

Series 1
FREQUENCY POLYGON

• Is constructed by marking the frequencies on

the vertical axis with a dot corresponding to
the values on the horizontal axis. These dots
are then connected with a straight line to
form a polygon.
PIE CHART

PIE CHART

26.67
20

53.33
PIE CHART

• It is a circular graph divided into

sections that represent the relative
frequencies or magnitudes of the
grouped values.
TABLE 3.3. CROSS-TABULATION (HOTDOG SALES)

Time 12 below 13-19 20 above Sum

7-10am 0 0 7 7
11-2pm 12 4 4 20
3-6pm 1 16 0 17

Time 12 below 13-19 20 above Sum

7-10am 0.00% 0.00% 100.00% 100.00%
11-2pm 60.00% 20.00% 20.00% 100.00%
3-6pm 5.88% 94.12% 0.00% 100.00%
FOCUS GROUP DISCUSSION

• FGD is one of the most common qualitative

research tools.
• It is effective in extracting consumer and non-
consumer experiences regarding products,
places, or programs.
FGD can be used to address substantive issues such as:
Understanding consumers’ perceptions, preferences,
and behavior concerning a product category;
Obtaining impressions on new product concepts;
Generating new ideas about older products;
Developing creative concepts and copy
material for advertisements;
Securing price impressions; and
Obtaining preliminary consumer
reaction to specific marketing programs.
 4 KEY DECISIONS TO BE MADE:

1.Respondent Selection
2.Sample Size
3.Data Gathering
4.Data Analysis
1. RESPONDENT SELECTION

Includes:
1. The definition of the respondents;
2. The classification of the respondents; and
3. The screening of respondents.
2. DATA GATHERING

Involves:
1. The selection and preparation of the venue and
equipment;
2. The formulation of the discussion agenda; and
3. A facilitator who is very skilled in moderating and
possesses the ability to draw out significant insights
from the participants.
3. DATA ANALYSIS

Includes:
1. The integration of the information gathered;
2. Some observations on respondent behavior; and
3. Listing of recommendations and report writing.
 9 STEPS IN CONDUCTING A FOCUS GROUP
DISCUSSION

1. Develop the research objectives. What is the research all

about?
2. Determine the participants’ profile. Who are the most
knowledgeable or most relevant participants?
3. Determine the appropriate token or “compensation” for
the participants.
9 STEPS IN CONDUCTING A FOCUS GROUP
DISCUSSION

4. Develop a participant screener

questionnaire.
5. Recruit the participants.
6. Select a good facilitator. The key qualities of a
good facilitator are:
•Kindness with firmness
•Involvement and encouragement
•Complete understanding
•Flexibility
•Sensitivity
9 STEPS IN CONDUCTING A FOCUS GROUP
DISCUSSION

7. Develop a facilitator’s discussion guide.

8. Arrange for the venue and logistics.
9. Analyze the results of the focus group
discussion.
SURVEY RESEARCH

Survey is the most preferred instrument for in-

depth quantitative research. The respondents
are asked a variety of questions which are often
about their personal information, their
motivations, and their behavior.
OBSERVATION TECHNIQUE
• One has to simply observe people as
they go about their usual activity such
as buying and using products and
services and assess how they behave.
• These observations must be documented
and tallied for proper analysis later on.
Prior to doing the observation, it is
important for the researcher to ensure
that the following conditions are met:
1. The needed information must be
observable or inferable from the
behavior that can be observed.
2. The subject matter contains
some sensitivity that needs
detached observations.
3. The behaviors of interest must
be repetitive, frequent, or
predictable in some manner.
4. The behaviors of interest must
be of a relatively short duration.
Activity: Brainstorming
In this activity, each member of the
group will contribute ideas, concept or
own understanding about the topic.
 ADVANTAGES OF OBSERVATION
RESEARCH
1. It allows the researcher to see what customers
actually do rather than rely on what they say
they do.
2. It allows the researcher to observe customers
in their natural setting.
 ADVANTAGES OF OBSERVATION
RESEARCH
3. It does not subject the researcher to the
unwillingness of customers or their inability to
reply to certain questions.
4. Some information are better gathered quickly
and accurately through observation.
DISADVANTAGES OF OBSERVATION
RESEARCH
1. The researcher cannot get the reasons behind the
behavior.
2. The researcher can only focus on the “here and
now”. It cannot cover the past nor cover the future.
3. Finally, the observation technique may border on the
unethical because the respondents have not agreed to
be observed.
2 TYPES OF OBSERVATION TECHNIQUES

Human Observation Mechanical Observation

- humans observe the - mechanical devices are

events as they happen. used to record events for
later analysis.
BELOW ARE THE GUIDELINES IN CONDUCTING
OBSERVATION RESEARCH

1. Determine the pre-observation objectives.

2. Prepare your pre-observation tips:
a. Prepare and clarify your observation points and issues.
b. Prepare your observation materials.
c. Identify the persons to be observed.
d. Position yourself strategically without being noticed.
BELOW ARE THE GUIDELINES IN CONDUCTING
OBSERVATION RESEARCH

3. Focus on what you want to observe:

a. Is it customer demographics?
b. Customer buying behavior?
c. Customer usage behavior?
d. Other customer information?
BELOW ARE THE GUIDELINES IN CONDUCTING
OBSERVATION RESEARCH

4. Observation proper:
a. Observe keenly and listen intently.
b. Be mindful of the surroundings.
c. Be alert for obvious movements.
d. Be sensitive to subtle movements.
e. Look at the customer when the customer is
not looking.
f. Do not be obvious.
g. Observe and take note of other things that
you feel are important.
BELOW ARE THE GUIDELINES IN CONDUCTING
OBSERVATION RESEARCH

5. Post-observation tips:
a. Review your notes.
b. Make sure that the flow is correct.
c. Tabulate what needs to be tabulated.
d. Interpret and analyze your data.
e. Make a formal report.
In planning a survey, there are three
important concerns that one has to look
into:
1. Sampling technique
2. Getting the sample size
3. Designing the questionnaire
QUESTIONNAIRE DESIGN

These are some basic rules that have to be

followed in question formulation. These are:
• The questions, in their totality, should be able
to elicit all the necessary information required
in the research.
• Each question should be clear and definite.
QUESTIONNAIRE DESIGN

• Each question should cover one topic at a time.

• Each question should be presented in a neutral
manner.
• Each question should be translated into the
dialect that the target respondents are familiar
with.
SAMPLING TECHNIQUES

Probability sampling Non-probability sampling

- is where the respondents - refers to the technique
are randomly selected that is resorted to “when it
from a population such as is difficult to estimate the
in the lottery method. population of the study
because they are mobile or
transitory in a given
location.
SAMPLE SIZE

There are three basic sample size determinants.

These are as follows:
1. Data Variability of a proportion- dispersion of
the data or how widely spread the data is from
a central point.
SAMPLE SIZE

2. Confidence level in the estimation process- the

higher the confidence level desired, the bigger the
sample size needed; the current industry
standard has 95% confidence level.
SAMPLE SIZE

3. Error in the result of the estimation process –

the less error margin desired, the bigger is the
required sample size; it is expressed as plus or
minus a certain percentage.
N=
Where:
Z = 1.96 (the value of the normal variable
for a confidence level of 0.95. This means
that the probability of finding the true
population value within a given interval is
95%. If 99% is the chosen confidence level,
the value of Z is 2.58.)
Where:
p = 0.50 (the proportion of getting a good
sample)
1-p = 0.50 (the proportion of getting a bad
sample
d = error margin in decimal
n = sample size
 DO-IT-YOURSELF SURVEY: STEPS IN
CONDUCTING A SURVEY RESEARCH

1. Develop the research objectives.

2. Determine your sample.
3. Choose the interviewing methodology.
4. Create your questionnaire.
 DO-IT-YOURSELF SURVEY: STEPS IN
CONDUCTING A SURVEY RESEARCH

5. Pre-test the questionnaire.

6. Conduct interviews and enter data.
7. Analyze the data.