Market Research

Learning Intentions

Students will be able to:Describe the basic terminology of statisticsExplain how ‘sampling’ can help marketers and others to make decisions without asking everyone in an entire population

Describe the influencing effect of question design on data collection

Market Research

Purpose

Market Research

Advantages of Market ResearchHelps focus attention on objectivesAids forecasting, planning and strategic development

May help to reduce risk of new product development

Communicates image, vision, etc. Globalisation makes market information valuable (HSBC adverts!!)

Market Research

Disadvantages of Market Research Information only as good as the methodology used

Can be inaccurate or unreliable if done poorlyMay stifle initiative and ‘gut feeling’Always a problem that we may never know enough to be sure!

Primary Research

Market Research

Primary ResearchFirst hand informationExpensive to collect, analyse and evaluateCan be highly focussed and relevantCare 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

What Is statistics?

What Is statistics?

A branch of mathematics dealing with collection, presentation, analysis and interpretation of data

Statistical thinking is logical, uses data, recognises interdependence of activities (variables), and looks at how things vary.

What Is statistics?

It is only a very recent concept/idea. Until the just prior to the renaissance no one on earth had any idea that you could measure the ‘odds’ of something occurring.

And if no one believed you could measure the odds of something occurring, no one could predict the odds of something occurring.

What Is statistics?

Example?

Gambling with dice.

Two main kinds of statistics

Descriptive statisticsCollecting, describing, presenting data

Inferential statistics Drawing conclusions and/or making decisions concerning a population based only on sample data

Key definitions

Populationa collection of all members of a group being investigated

Samplesubset of the population

Samples and Populations

By studying the behaviour of a sample we can get a good idea of the behaviour of the population. Not a perfect picture, but good enough to guide decision making.

But why don’t we just check out the entire population to make sure we get it right?

Why take just a sample?

1. Less costly to administer

2. Less time consuming

3. More practical to administer than a census, & include more detail (for given resources)

4. possible that no product would be left if population tested (destructive)

5. possible that the population cannot be accessed

Samples and PopulationsWe can make sure our sample is as likely as

possible to be representative of the population though.

We control the quality of information contained in the sample by controlling the amount of sample data collected (i.e., number of people surveyed) and the sampling design used to collect it (e.g., the way you collected the data – i.e. cluster sampling vs. snowball sampling).

Market Research

Quantitative and Qualitative Information:

Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how

Qualitative – more detail – tells you why, when and how!

Question Design

An experiment. I will hand out a question.

Record your answer on the piece of paper in front of you and hand it over to the designated person on your table.