Market research involves collecting, analyzing, and understanding data related to markets and customer behavior. It is used primarily by manufacturing, service, and retail companies to guide decisions around new products, marketing, and sales. Most large businesses conduct both internal and external market research, spending 1-2% of revenue on average. There are different types of market research including primary data collection, secondary data analysis, qualitative research like focus groups, and quantitative research using surveys. Proper sampling techniques and question design are important to obtain accurate and unbiased insights.

1. Market Research
Why and How?
So what is today about?

2. “It is a capital mistake
to develop before
one has data”
Sir Arthur Conan Doyle

3. So what is market research?
Market research can be
defined as the
collection, collation and
analysis of data relating
to the market and
consumption of data.

4. So who uses it?
I know every successful
business, but which
sectors use it most?

5. Spending on Market Research
by Sector in the UK
44%
21%
13%
9%
4%
4% 5%
Manufacturing
Companies
Service companies
Retailers and
wholesalers
Ad. agencies
Public sector
Non-ad. research
agencies
Other

6. So who uses it?
Right so how much do
businesses spend on this?
And do they do it themselves
or get professional research
companies to do it?

7. Market Research Budgets
1 - 2% of company revenue = total budget
of this:
50% - 80%
internally
20% - 50%
externally
85% of British top
500 companies have
internal departments
Outsourced to market
research firms

8. Types of Market Research
 By Source
 - Primary
 - Secondary
 By Methodology
 - Qualitative
 - Quantitative

9. Types of Market Research: By
Source
 Primary
 Collection of data
specifically for the
task, product or
project.
 Secondary
 Based on data
previously collected
for purposes other
than the research
 (e.g. published articles,
government stats, etc ONS,
mintel, Keynote etc…)

10. Types of Market
Research: By Methodology
Qualitative Quantitative
Type of Question Probing Simple
Sample Size Small Large
Information per respondent High Low(ish)
Questioner’s skill High Low(ish)
Analyst’s skill High High
Type of analysis Subjective, Objective,
Interpretative Statistical
Ability to replicate Low High
Areas probed Attitudes Choices
Feelings Frequency
Motivations Demographics

11. Benefits of Qualitative Market
Research vs Quantitative
Benefit Comment/Example
Cheaper
Probes in-depth
motivations and feelings
Often useful to do before
quantitative research
Smaller sample size
Allows researches to observe (through
one way mirror) ‘real’ consumer
reactions, can understand
Gives the researcher a low time and
cost to gain understanding of what
to probe in larger scale quantitative
research

12. Population
Is simply every individual
that can be included in
the research
This is also known as
the target population
Asking surveying
everyone can be
expensive though
Time = Money

13. Sampling
 In most cases it is
impractical to survey
the whole population.
 It would be too costly
and too time consuming
to gather and process
the data (information).
 Instead researches take
samples of the
population

14. Sampling How?
Samples should be representative, they
should have the same characteristics as
the whole population
If they are not representative then the
results may be inaccurate, wasting time,
money and even influencing bad decisions

15. Example
 A survey may be carried out by a food company
to find out how many people would buy a new,
premium priced pizza.
 If they only asked pensioners (old people, older
than even Pat) on low incomes, their findings
would most certainly predict less demand /
revenue.
 Because the sample did not accurately
reflect the whole population.
This is called Bias sampling

16. Bias sampling
This occurs when an individual or party
already has a preference or favourite with
reference to the questions asked
For example ask Pat what is the best
football team in the UK
Sheffield Wednesday’s Football Club

17. Random Sampling
 Every item in the
population has an equal
chance of being chosen.
You could also pull
names from a hat.
 This is best suited when
the preferences of the
population are all the
same i.e. not gender
specific
 Although never Bias

18. Systematic Sampling
 A regular pattern is used to choose the sample.
Every item in the population is listed, a starting
point is randomly chosen and then every x
individual is selected. For example, a mixed
(male and female) class could be listed and
every 3rd
student selected
 This is may be unrepresentative if a pattern
exists in the list. For example, every 3rd
student
in the above sample may be a girl.

19. Convenience Sampling
The most convenient sample is chosen
which, for a sample of size sixty, could
mean the first sixty people you meet.
It is highly likely that this sample would be
biased and unrepresentative.
It s cheap
though
This guy did
not even get
out of bed for it

20. Stratified Sampling
Also a random method but the sample is
divided into strata's or segments based on
characteristics
For example spit the population into boys
and girls, or age……

21. Quota Sampling
 The population is divided into categories (strata) by age, gender,
social class..., and then a sample is chosen from each category.
The size of each sample is in proportion to the size of each category
within the population.
 For example
Year Group Year 7 - 9 Year 10-11 Year 12-13
Number of girls 480 320 100
If I want a sample of 30 girls, I would choose the number of people to take
part from each year as follows:
Year 7-9 480 / 900 x 30 = 16
Year 10-11 320 / 900 x 30 = 11 (nearest whole number)
Year 12-13 100 / 900 x 100 = 3 (nearest whole number)

22. Snowball Sampling
 Is a highly specialised
method of sampling. It
involves starting a process
with one individual or
group and using their
contacts to develop the
sample, hence
“snowball”
When this is undertaken via email
this is also referred to as Viral
Marketing or viral research, as
like a virus it start with one person
and spreads. This is a very
effective tool, when used correctly

23. Cluster Sampling
This involves separating the
population into clusters,
usually in different geographic
areas
A random sample is then
taken from the cluster and
thought to be representative
of the entire population

24. Issues to consider in
questionnaire design
Sensitivity of question
Bias in formulation
Cultural issues
Repetition
Respondent motivation
Questioner training
Comprehensiveness
Ease of completion

25. Careful how you ask the
question
Q. Do you approve of smoking whilst
working?
A: No
Q. Do you approve of working whilst
smoking?
A:Yes

26. Market Research: Summary
 Market Research is usually an integral part of
understanding innovations - you ignore it at your
cost....
 But it must be timely, objective and relevant,
otherwise it is worse than useless, leading you down
the wrong path
 So, be involved as far as you can be, especially up
front and don’t let the jargon deter you!

27. Top 10 market research activities
Market Measurement 18%
New Product development/concept testing 14%
Ad or brand awareness monitoring/tracking 13%
Customer Satisfaction (inc Mystery Shopping) 10%
Usage and Attitude Studies 7%
Media Research & evaluation 6%
Advertising developing and pre-testing 5%
Social Surveys for central/local government 4%
Brand/corporate reputation 4%
Repeat customer Studies 3%
Source: BMRA