This is for the students who need to know more about market

2. Learning Objectives:
1. To introduce students to market research and gain a good
understanding
of its purpose and value in doing a good business plan.
2. To develop students skills in basic market research
3. To enable students to extract meaningful insights from market
research
findings that would help in defining, targeting, and capturing a
customer base.

3. Entrepreneur, Know Thy market Well
 This simple reminder must keep the entrepreneur alert all the time.
 The Entrepreneur should exert all the efforts to know the market he or she
wants to exploit.
 The more you know about your market, the better you will be able to determine
customers needs and wants.
 You will be able to reach them wherever they are.
 This will be possible through conducting good market research.

4. 7 Basic Questions in Market Research
Why Purpose and objectives 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 ( e.g., survey,
focus group discussion, observation, etc. )

5. Good market research allows entrepreneurs to make decision wiser.
Market Research Methodologies:
1. Sales data Mining
2. Focus Group Discussion
3. Observation Technique
4. Survey Research
In Market research there are 3 commonly used graphs
a. Histogram- ( bar graph ) consists of a series of rectangles or bars. Each bars 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.

6. b. 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 a form a
polygon.
c. Pie Chart – It is a circular graph divided into sections that represent the
relative frequencies or magnitudes of the grouped values.

7. 2. Focus Group Discussion
• This is the most common qualitative research tools.
• It is effective in extracting consumer and non consumer experiences
regarding products, places or programs.
• Can also be used for generating initial insights.
FGD can be used to address substantive issues such as :
1.Understanding consumers’ perceptions, preferences, and behavior
concerning a product category.
2. Obtaining impressions on new product concepts;
3. Generating new ideas about older products;
4. Developing creative concepts and copy material for advertisements;
5. Secure price impressions; and
6. Obtaining preliminary consumer reaction to specific marketing programs

8. In FGD, there are four key decisions to be made:
1.Respondent selection
2. sample size
3. data gathering
4. data analysis
Respondent Selection includes
1.The definition of the respondents;
2. The classification of the respondents; and
3. The screening of the respondents.

9. Data Gathering methods in FGD involve:
1. The selection and preparation of the venue and equipment;
2. The formulation of the discussions agenda; and
3. A facilitator who is very skilled in moderating and possesses the ability to draw out significant
insights from the participants.
Data Analysis Includes:
1. The integration of the information gathered;
2. Some observations on respondent behavior; and
3. Listing of recommendations and report writing.

10. 9 Steps in conducting a Focus Group Discussion
1. Develop the research objectives. What are the research all abou?
2. Determine the participant’s profile. Who are the most knowledgeable or
more relevant participants?
3. Develop the appropriate token or “compensation “ for the participants.
4. Develop a participant screener questionnaire.
5. Recruit the participants.
6. Select a good facilitator
7. Develop a facilitator’s discussion guide.
8. Arrange for the venue and logistics.
9. Analyze the results of the Focus Group Discussion.

11. 3.Observation Technique
it is probably one of the best ways of gathering data about customers in their natural
setting without having to interact or talk to them
Following conditions should be met by a researcher to properly documented and tallied
analysis.
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 observation.
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.

12. Advantage 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 the customers in their natural setting,
3. It does not subject the researcher to the unwillingness of customers of their inability
to reply to certain questions.
4, Some informations 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.

13. Guidelines in Conducting Observation Research
1. Determine the pre- observation objectives.
2. Prepare your pre – observation tips
3. Focus on what you want to observe
4. Observation proper
5. Post observation tips
4. Survey Research
Survey is the most preferred instrument for in – depth quantitative research.
3 Important concerns in Planning a Survey:
1. Sampling technique
2. Getting the sample size
3. Designing the questionnaire – this is the most sensitive phase.

14. Questionnaire Design
Sampling Techniques are classified into probability and non- probability sampling .
Probability Sampling – is where the respondents are randomly selected from a population
Non- Probability Sampling – refers to the technique that is resorted to “when it is difficult to estimate
the population of the study because they are mobile or transitory in a given location
Sample Size Determinants
1. data variability of a proportion
2. confidence level in the estimation process
3. error in the result of the estimation process

15. Steps in Conducting a Survey Research
1. Develop the research objectives
2. Determine your sample
3. Choose the interviewing methodology
4. Create your questionnaire
5. Pre- test the questionnaire
6. Conduct interviews and enter data
7. Analyze the Data
2. Customer Profiling is a way to create a portrait of your customers to help you make design
decisions concerning your service.

16. Methods of Customer Profiling
1. Demographics
Social classes and reference groups often dictate what is acceptable or
unacceptable behavior
Occupations-
Domiciles or habitats areas of residence and environmental surroundings oftentimes
define and limit the choices available to customers.
2. Psychographics- defines the customer’s motivations, perceptions, preferences and lifestyle
Motivation – goes to the roots of customer’s needs and wants
Perception – is the way a person chooses to receive of interpret information from the external
world.

17. 3. Technographics
classifies people according to their level of expertise in using a product or a service.
Application of Customer Profiling
2 Ways in Customer Profiling
1. To develop a product or service to test out in the marketplace.
2. To profile the different types of customers in a given industry or area as to their needs
and wants.
Market Segmentation – it is customers similar wants and needs and similar willingness and
ability to pay
Market Segmentation – customers prefer to deal in commodities
Market Mapping – refers to grouping customers and products according to certain market variables.

18. The Purpose of market mapping is to provide the market analyst a better understanding
of the market as a whole and to paint a clearer picture of where the different competitors are
relative to the different market segments.

19. Thank you !!!!!!!!!!!!!!!