chapter 02 market research cb

7/28/2019 Chapter 02 Market Research CB

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Market Research


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Marketing research is a formalised

means of collecting, analysing and

interpreting information to be used

in helping making marketing

decisions.


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Market Research

should be thought

of as a lamp-post.

Without light you

are fumbling

around in the dark


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However, itshould not be

used as a drunk

may use the lamp

post

to prophimself up


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Nor should it

be used as a

dog may use a

lamp post


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Market ResearchHow to collect certain information about:

your customers,

market and

competitors.

This information tells you about:

your potential market,

prices,

trends,

competition,

target customer,

its preferences,

income,

habits, accessibility,

convenient time and

plans.

This information should be accurate, and reliable to help you make

the right business decision.


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Important questions

What kind of business

should I do?

What is the demand

for my business?

Who are my

customers?

What are the market

forces that will affect

my business?

Where should I locate

my business?

How much profit can I

get at differentlocations and times?

Who are my competitors and

what kind of product, priceand service they offer?

How I differentiate my

business from my

competitors?

What types of service do my

customer prefer?

What types of advertisingattract my customers?

What is the market price and

how I can change my price

accordingly?


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An Existing business

What are the new trends, product, time, location and service

in the market? And how I adapt them?

What are my weaknesses and strengths in my business

compare to my competi tors?

How I can dif ferentiate my business and make it unique?

Should I change and redir ect my advertising campaign

according to the recent situations?

How can I change my customers spending habits?

How can I expand my business with minimum cost?


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How to design a questionnaire Keep your

questions very

short,

understandable,and clear.

Ask direct

questions.

Ask questions thatcan be answered

easily, open/close-

ended .

Ask questions that

do not have morethan one meaning.

Make sure your

questions do not

offend anyone.

Make your questions only in your

subject matter.

Customize your questions to

encompass more than one group of

people, male/female.

Be honest with the intent of thequestionnaire.

Give enough time answer.

Be courteous and friendly whenasking people to participate in your

survey.

Ask questions in different repeated

ways, so you minimize missing data.


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2 steps in designing the research

1. Defining the general problem

2. Identify specific components of

the research task.

Explore a new thinking

Improving current performance

Characteristics of the targeted consumer

population and env. context of the problem


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2 Approaches to Research

1. Exploratory research

is conducted because a problemhas not been clearly defined.

It helps determine the bestresearch design, data collectionmethod and selection of subjects.

2. Problem- solving research


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Market Research


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Secondary Research


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Internal Sources

Company Accounts

Internal Reports and Analysis

Stock Analysis

Retail data - loyalty cards, till data, etc.


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External Sources

Government Statistics

Commercial Data

Household Expenditure Survey

Magazine surveys

Other firms research

Research documents publications,

journals, etc.


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Sampling Methods


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Market Research

Sampling Methods:

Random Samples equal

chance of anyone being picked

May select those not in the target

group indiscriminate

Sample sizes may need to be

largeto be representative

Can be very expensive


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Market Research

Stratified or Segment Random

Sampling

Samples on the basis of a

representative strata or segment

Still random but more focussed

May give more relevant

information May be more cost effective


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Market Research

Quota Sampling

Again by segment

Not randomly selected

Specific number on each segment

are interviewed, etc.

May not be fully representative

Cheaper method


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Market Research

Cluster Sampling Primarily based on geographical areas

or clusters that can be seen as beingrepresentative of the whole population

Multi-Stage Sampling Sample selected from multi-stage

sub-groups

Snowball Sampling Samples developed from contacts

of existing customersword of mouthtype approach!


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Primary Research


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Market Research

Primary Research

First hand information

Expensive to collect, analyse and

evaluate Can be highly focussed and relevant

Care needs to be taken with the

approach and methodology to ensure

accuracy Types of question closed limited

information gained; open useful

information but difficult to analyse


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Market Research

Quantitative and QualitativeInformation:

Quantitative based on

numbers 56% of 18 year oldsdrink alcohol at least four timesa week - doesnt tell you why,when, how

Qualitative more detail tellsyou why, when and how!


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Purpose


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Market Research

Advantages of Market Research

Helps focus attention on objectives

Aids forecasting, planning and strategic

development May help to reduce risk of new product

development

Communicates image, vision, etc.

Globalisation makes market informationvaluable (HSBC adverts!!)


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chapter 02 market research cb

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