So what is today about?
Why and How?
“It is a capital mistake
to develop before
one has data”
Sir Arthur Conan Doyle
So what is market research?
research can be
defined as the
collection, collation and
analysis of data relating
to the market and
consumption of data.
So who uses it?
I know every successful
business, but which
sectors use it most?
Spending on Market Research
by Sector in the UK
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?
Market Research Budgets
1 - 2% of company revenue = total budget
50% - 80%
85% of British top
500 companies have
20% - 50%
Outsourced to market
Types of Market Research
Types of Market Research: By
specifically for the
task, product or
for purposes other
than the research
(e.g. published articles,
government stats, etc ONS,
mintel, Keynote etc…)
Types of Market
Research: By Methodology
Type of Question
Information per respondent
Type of analysis
Ability to replicate
Benefits of Qualitative Market
Research vs Quantitative
Smaller sample size
Allows researches to observe (through
one way mirror) ‘real’ consumer
reactions, can understand
motivations and feelings
Often useful to do before
Gives the researcher a low time and
cost to gain understanding of what
to probe in larger scale quantitative
simply every individual
that can be included in
This is also known as
the target population
everyone can be
Time = Money
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
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
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 /
Because the sample did not accurately
reflect the whole population.
This is called Bias sampling
occurs when an individual or party
already has a preference or favourite with
reference to the questions asked
example ask Pat what is the best
football team in the UK
Sheffield Wednesday’s Football Club
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
Although never Bias
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.
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
This guy did
not even get
out of bed for it
a random method but the sample is
divided into strata's or segments based on
For example spit the population into boys
and girls, or age……
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.
Year 7 - 9
Number of girls 480
If I want a sample of 30 girls, I would choose the number of people to take
part from each year as follows:
480 / 900 x 30 = 16
320 / 900 x 30 = 11 (nearest whole number)
100 / 900 x 100 = 3 (nearest whole number)
Is a highly specialised
method of sampling. It
involves starting a process
with one individual or
group and using their
contacts to develop the
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
involves separating the
population into clusters,
usually in different geographic
A random sample is then
taken from the cluster and
thought to be representative
of the entire population
Issues to consider in
Bias in formulation
Ease of completion
Careful how you ask the
Q. Do you approve of smoking whilst
Q. Do you approve of working whilst
Market Research: Summary
Market Research is usually an integral part of
understanding innovations - you ignore it at your
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!
Top 10 market research activities
New Product development/concept testing
Ad or brand awareness monitoring/tracking
Customer Satisfaction (inc Mystery Shopping)
Usage and Attitude Studies
Media Research & evaluation
Advertising developing and pre-testing
Social Surveys for central/local government
Repeat customer Studies