Market Research Slides


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Market Research Slides

  1. 1. Market Research
  2. 2. WHAT IS MARKET RESEARCH? “ Market research is the systematic gathering , recording and analysing of data about problems relating to the marketing of goods and services.” “ Market research is the means by which those who provide goods and services keep themselves in touch with the needs and wants of those who buy these goods and services.”
  3. 3. METHODS OF RESEARCH <ul><li>There are 2 main sources of information which organisations make use of: </li></ul><ul><li>Primary </li></ul><ul><li>Secondary </li></ul>
  4. 4. METHODS OF RESEARCH <ul><li>FIELD RESEARCH </li></ul><ul><ul><li>this is information collected by the organisation itself or by a paid market research agency </li></ul></ul><ul><li>DESK RESEARCH </li></ul><ul><ul><li>this is information already collected for another purpose, e.g. government statistics </li></ul></ul>There are 2 main types of market research:
  5. 5. FIELD RESEARCH <ul><li>Personal interview </li></ul><ul><li>Telephone interview </li></ul><ul><li>Postal surveys </li></ul><ul><li>Purchase survey </li></ul>Involves the use of PRIMARY data which does not already exist and must be collected from scratch. Methods include: <ul><li>Observation </li></ul><ul><li>Use of technology </li></ul><ul><li>(EPOS & Loyalty Cards) </li></ul><ul><li>Consumer panels </li></ul><ul><li>Test marketing </li></ul>
  6. 6. COSTS & BENEFITS OF FIELD <ul><li>up-to-date </li></ul><ul><li>collected for exact purpose required by the organisation </li></ul><ul><li>not easily available to competitors therefore can be used to gain marketing advantages over rivals </li></ul><ul><li>time consuming </li></ul><ul><li>expensive </li></ul><ul><li>requires specialist researchers </li></ul>
  7. 7. SAMPLING <ul><li>3 decisions to be taken: </li></ul><ul><li>Who is to be surveyed. This will be the POPULATION that you plan to target in your research. </li></ul><ul><li>How many people should be surveyed from the target POPULATION? </li></ul><ul><li>How do we choose those to be included in the survey? </li></ul>
  8. 8. METHODS OF SAMPLING <ul><li>Random Sampling </li></ul><ul><li>the sample is selected at random </li></ul><ul><li>main advantage is that no bias is involved in selection </li></ul><ul><li>main disadvantage is that it may not focus on any particular market segment </li></ul><ul><li>Stratified Random Sampling </li></ul><ul><li>the sample is divided into segments based on previous knowledge </li></ul><ul><li>e.g. the researcher knows that 10% of the population are in socio- economic group AB, 50% in C and 40% in DE. </li></ul><ul><li>Main advantage is that this method makes the sample more representative of the population </li></ul><ul><li>Quota Sampling </li></ul><ul><li>This involved the population being segmented into groups which share specific </li></ul><ul><li>characteristics (gender, age, income, marital status etc) </li></ul><ul><li>It is the job of the researcher to find and interview the people who fit th </li></ul><ul><li>categories required. </li></ul><ul><li>Main advantages are that this method provides a more targeted method of </li></ul><ul><li>sampling and it is cheaper than random sampling </li></ul>
  9. 9. DESK RESEARCH <ul><li>INTERNAL SOURCES </li></ul><ul><li>sales figures </li></ul><ul><li>stock figures </li></ul><ul><li>accounting records </li></ul><ul><li>customers’ comments and complaints </li></ul><ul><li>sales representatives’ reports </li></ul><ul><li>market research data gathered earlier </li></ul>Involves the use of SECONDARY data which already exists in some form having been collected for another purpose. This information may be internal or external.
  10. 10. EXTERNAL SOURCES <ul><li>EXTERNAL SOURCES </li></ul><ul><li>Government publications </li></ul><ul><li>Competitors’ information </li></ul><ul><li>Trade directories/journals </li></ul><ul><li>Market research organisations - Mintel </li></ul><ul><li>Newspapers, magazines, CD ROMs </li></ul><ul><li>International publications </li></ul>Secondary data is available from a wide variety of external sources. Although this information has been collected for another purpose, firms may be able to adapt it for their own use. Organisations may have to pay for access to this data but this will still be cheaper and probably less time-consuming than primary research
  11. 11. BENEFITS OF MARKET RESEARCH <ul><li>aid to decision-making </li></ul><ul><li>reduces risk </li></ul><ul><li>provides a link to outside world </li></ul><ul><li>public relations </li></ul>
  12. 12. PROBLEMS WITH MARKET RESEARCH <ul><li>Sampling bias </li></ul><ul><li>- results from a small group may turn out to be completely different from the reactions of the wider population </li></ul><ul><li>Human behaviour </li></ul><ul><li>- while the responses of the sample may be correct at the time of the research, opinions change </li></ul><ul><li>Interviewer bias </li></ul><ul><li>- the interviewer may have led the interviewee into saying what they think the interviewer wants them to say </li></ul>
  13. 13. Questions <ul><li>Organisations continually try to obtain primary information about the market in which they operate. </li></ul><ul><li>Describe the advantages and disadvantages of 3 types of field research an organisation could use to obtain primary information. (2007, S2, Q1(a)) (8 Marks) </li></ul><ul><li>Carrying out market research does not necessarily guarantee success in the market. </li></ul><ul><li>Explain why information gathered by an organisation might be of little use to them? (2001, S2, Q1(b)) </li></ul><ul><li>(6 marks) </li></ul>Sol
  14. 14. Questions <ul><li>A sports goods manufacturer is considering introducing a new range of trainers. </li></ul><ul><li>(a) Describe and justify 3 methods of field research which would tell them whether or not this proposal is viable. </li></ul><ul><li>(6 marks) </li></ul><ul><li>(b) Describe the difference between random and quota sampling. </li></ul><ul><li>(2 marks) </li></ul><ul><li>(c) The manufacturer chose quota sampling rather then random sampling when conducting research. Justify the choice of quota sampling. (2004, S2, Q2(d)) </li></ul><ul><li>(1 mark) </li></ul>