Know all about market research through this presentation.

1. MARKET
RESEARCH

2. WHAT IS MARKET RESEARCH?
•It is the process of gathering, analyzing and interpreting information about a market.
•If there is no demand for a product or the market is very small, it would be of no use to develop a
product.
•Market research helps to gather quantitative and qualitative information about a market.
•Market research can be of 2 types:
•Primary research : It is the collection of original data through direct contact with customers.
•Secondary research : It uses information that has already been collected and is ready for use.

3. PRIMARY RESEARCH
•Advantages:
It is relevant and up to date.
The questions asked are prepared by the people who want to use it first hand.
It is not available to other business.
•Limitations:
It can be expensive.
It is time taking and not available immediately.

5. METHODS OF PRIMARY RESEARCH
•Primary market research can be carried out through a number of methods such as the following
Questionnaires: These are a set of questions that needs to be answered as a means of data. It
helps to gather qualitative information along with the customer’s opinion about a product.
However it can be expensive and time taking to carry out while if the questions are not well
thought, the results may not show the correct picture.
Online Surveys: These are a set of questions answered over the internet. These are easy , quick
and cheap to carry out. The data which is collected can also be easily analyzed using IT tools.
However there is scope for fraud. Some people may not be able to understand the question while
many of people may not have access to the survey due to poor internet access.

6. METHODS OF PRIMARY RESEARCH
Interviews: It involves asking a series of question often face to face due to which the interviewer
may be able to fully explain the questions along with gathering detailed information about the
interviewee’s like and dislikes of a product. However these are very time consuming and
expensive.
Focus groups: It is a group of people who are representative of the target market . These people
interact and help the business gather information about the preferences of the customers. It is
quicker and cheaper than interviews. However the discussion could be biased if some people are
influenced by the views of others. In some cases, it can be time consuming and expensive if they
are carried out by specialist market research agencies.

7. SAMPLING
•Sample is a group of target market who are selected to respond to a market research exercise.
There are 2 methods of sampling:
Random sample: It is when people are selected at random and each individual has an equal
chance of being a part of market research exercise.
Quota sample: It is when people are selected based on certain characteristics such as age or
income.

8. MARKET AND PRODUCT
ORIENTTATED BUSINESS
•A product orientated business is one whose main focus of activity is the product itself. They
produce a product and then sell the product without any prior market research. These are
usually basic commodities or newly developed product.
•A market orientated business carries out market research before launching a product so they
can produce the product accordingly to maximize sales. These businesses usually have a
marketing budget which is a financial plan for the marketing of a product.

9. SECONDARY RESEARCH
•Advantages:
It is cheap.
Can be quickly obtained.
Can be used obtained basic market information. E.g. size of market and age structure of population.
•Limitations:
The data may be out dated.
The information may be irrelevant.
The data may not be completely accurate.

10. SOURCES OF SECONDARY DATA
•A lot of information can be obtained through internal sources of a business like the sales
department records, finance department, the public relations personnel etc.
•There are a variety of external sources of secondary data which include the following:
Government Statistics
Online sources
Trade association for the industry
Newspapers
Market research agencies

11. HOW ACCURATE IS YOUR RESEARCH DATA?
•The accuracy of data that has been collected largely depends on the following factors:
The way in which the questions of questionnaire were phrased , to ensure honest response from
the sample .
No bias data should be included.
The sample selected should show true representation of the target audience.
The larger the sample, accurate the data would be.
Age of the information.

12. HOW TO USE A QUESTIONAIRRE?
•First of all you need to keep in mind that what do you want to find out in the questionnaire , Who
do you need to ask (age group , male/female & etc) and lastly you need to know where you will
carry out your questionnaire?.
•After finding the answers of the above question ,you need to write questions for the
questionnaire. Questions should not be more than 12, the question should be short and clear such
as yes or no questions. Do not write open handed questions as it will lead to excess useless
information. You should also think about the order in which you want to ask the questions.
•Lastly you need to decide the sample size along with the time and place of when and where you
will be carrying out the questionnaire.

13. PRESENTATION OF DATA
•Data of market research can be presented in a number of ways which are the following:
Table or a tally chart: It is commonly used while carrying out research. In most cases the
data is then converted into a graph or chart.
Chart: It shows the proportion of each piece in terms of the total number. E.g. Bar chart, pie
chart etc.
Graph: It shows the relationship between two sets of data.

14. CHART
TALLY CHART

15. THANK YOU