topic 2 market research - wordpress.com · 02.11.2015 · not they are cost effective. ... the list...
TRANSCRIPT
Learning Intentions / Success Criteria
Learning
Intentions
Market
research
Success Criteria
By end of this topic you will be able to
explain:
• the different methods of field research
and their costs and benefits
• the different methods of desk research
and their costs and benefits
• the use of sampling in market research
• the use of market research information
to a business.
2
Market Research
Market research aims to find out what customers want and what is happening
in the marketplace. It involves looking at what already exists (secondary
information) and finding out something new (primary information). Market
research can find out:
• The types of customers who are making purchases and their buying habits.
• How successful marketing and advertising campaigns are, and whether or
not they are cost effective.
• What changes might need to be made to existing products to improve them.
• What customers would like to see in the future.
• How customers have reacted to, for example different products, prices and
promotions.
• There are two types of market research: field and desk.
3
Field Research
• This involves carrying
out research to gather
new information.
• As this information is
gathered first-hand for a
specific purpose, it is
called primary
information.
Field research methods
include:
• surveys/questionnaires
• interviews
• observations
• hall tests
• focus groups.
4
Advantages/Disadvantages of Field
Research Advantages
• Complete – field information
should have no parts missing.
• Timely – in the respect that the
information is up to date.
• Appropriate – field information
is fit for the purpose it is needed
for.
• Accurate – information should
be correct as it can be validated.
Disadvantages
• Not cost effective –
field information
requires trained and
paid interviewers or
expensive research
companies.
5
Sampling
• When field research is
being carried out, it is
impossible to ask
everyone for their
opinions on something.
• Because of this, people
have to be selected to
take part in a piece of
research.
Different sampling
methods can be used to
select people to take part
in research:
• random sampling
• quota sampling
• stratified random
sampling
• cluster sampling.
6
Random Sampling
The sample is picked randomly, e.g. using a
telephone directory or list of customers.
Advantages Disadvantages
• No bias is
shown by the
researcher.
• Saves time in
selecting the
sample.
• Sample may not reflect the target market.
• Can over represent a certain segment, e.g.
all males could be chosen at random.
• Can be expensive as many calls may have
to be made if customer lists are not up to
date.
7
Quota Sampling
The researcher chooses from a group of people
with certain characteristics.
Advantages Disadvantages
Quick and easy method as
group lists are pre-made.
The exact sample from each
group is not randomised, so
researcher bias could be
involved.
8
Stratified Random Sampling
A sample is selected that is representative of the target
market, e.g. if 75% of the population for a product is
working class, male and aged 20-30, then that’s what
75% of the sample should be.
Advantages Disadvantages
• Sample represents the target
market.
• No researcher bias as the
sample is randomised from
the list of those that meet the
characteristics required.
• Takes time to work through
population lists and select
the exact sample required.
• The sample chosen could be
geographically dispersed,
adding to the costs of
research. 9
Cluster Sampling
The population is split into smaller ‘clusters’,
often geographically, which could represent the
population on a small scale.
Advantages Disadvantages
• Saves time compared to
researching samples spread
across wider areas.
• One of the cheapest methods
of sampling.
Risk of the sample not being
accurate enough to represent
the target market.
10
Methods of Field Research
Once a sample population has been identified,
the filed research method must be chosen.
Methods of field research:
• Personal Interview
• Telephone Survey
• Postal Survey
• Online Survey
• Street Survey.
11
Personal Interview
This is a face-to-face interview. A number of
questions will be asked by the interviewer.
Advantages Disadvantages
• Clarification can be
gained on questions not
understood.
• Body language and
facial expression can be
monitored.
• Information is obtained
instantly.
• Time-consuming and expensive
to carry out.
• Not many people may be able to
be interviewed in this way
compared to other survey
methods.
• Researcher requires training to be
successful (e.g. questioning
techniques). 12
Telephone Survey
People are contacted by telephone and asked to
answer questions.
Advantages Disadvantages
• People spread across large
geographical areas can be
accessed.
• Less expensive than a personal
interview.
• Clarification can be obtained.
• Information is obtained instantly.
• People might not like
taking part in a
telephone survey.
• Large and/or time-
consuming surveys are
unlikely to be suitable
for this method.
13
Postal Survey
A survey is sent through the post, is completed
and then sent back.
Advantages Disadvantages
• People spread across
large geographical
areas can be accessed.
• Surveys can be
completed at a time
that people choose
and is more
convenient to them.
• Relies on people opening the letter
containing the questionnaire in the
first place, completing it and
sending it back.
• Information is not obtained
instantly.
• Clarification cannot be gained; the
survey has to be designed carefully.
14
Online Survey
A website is used to ask questions and people
simply access the website to answer them.
Advantages Disadvantages
• Online software can often be
free of charge.
• No postal or telephone costs.
• People spread across large
geographical areas and
countries can be accessed.
• Online software can often
collect and analyse the results.
• Online software that is free
might limit the number of
questions that can be asked.
• People require access to the
internet.
• Clarification cannot be
gained; the survey has to be
designed carefully.
15
Street Survey
Asking people in the street to complete a survey.
Advantages Disadvantages
• Specific individuals can be
chosen (e.g. based on their
age or gender).
• Clarification can be gained.
Expensive to carry out as
individuals need to be
employed to carry out the
survey.
16
Desk Research
This involves looking at
existing information
(secondary information)
from either within the
organisation (internal
information) or outwith
the organisation (external
information).
Desk research might
involve looking at:
• websites
• newspaper articles and
magazines
• government reports
• textbooks.
17
Advantages/Disadvantages of Desk
Research Advantages
• Timely – desk
information is quick to
gather.
• Cost effective – desk
information does not
require trained and paid
interviewers or research
companies.
• Available – desk
information already exits
so is easy to look up.
Disadvantages
• Not objective – desk information
is collected and presented by
someone else, so could be biased.
• Not appropriate – desk
information is not fit for the exact
purpose and may have to be
‘shoehorned’ to fit the businesses’
needs.
• Not concise – the researcher may
have to read through a lot of
information to get what is needed.
18
Types of Desk Research
• Desk research involves
looking at different types
of secondary (existing)
information.
• Some of this information
might be available
electronically through, for
example, the internet.
There are different types
of information that might
be analysed:
• Written
• Oral
• Pictorial
• Graphical
• Numerical.
19
Written
Information that is presented as text, e.g. reports,
text messages, e-mails, written text on web
pages.
.
Advantages Disadvantages
• Can be kept for future
reference.
• Facts can be passed on more
accurately compared to oral
information.
• May be unable to obtain
clarification.
• Requires a degree of literacy
skills.
20
Oral
Information that is spoken and heard by someone
else, e.g. in a meeting or on the telephone or
from a TV programme.
.
Advantages Disadvantages
• Instant response is given.
• Questions can be asked
immediately.
• Body language can be
monitored.
• Points might be
misinterpreted.
• Requires careful listening
skills.
21
Pictorial
Information presented through photographs or
pictures in reports, newspapers or websites.
Advantages Disadvantages
• Information is presented
attractively.
• Significant points can be
highlighted and/or
emphasised.
• Complex information cannot
be communicated.
• Factual information cannot
be communicated as easily
as in written information.
22
Graphical
Information presented through a graph or chart.
Advantages Disadvantages
• Comparisons can be made
easily.
• Complex information can be
presented clearly.
• Requires numeracy skills to
create graphs.
• The user needs to be able to
interpret graphical
information.
23
Numerical
Information presented through numbers, e.g.
sales figures on websites of companies.
Advantages Disadvantages
• Financial information
can be analysed.
• Calculations can be
carried out.
Requires numeracy skills
to handle and interpret
numerical information.
24
Sources of Information
Advantages Disadvantages
Primary • Source is known and is therefore more
reliable than secondary information.
• Information is gathered for a specific
purpose and is therefore relevant.
• Time-consuming to collect, which might
delay decision-making.
• Expensive to collect which will reduce
profitability.
Secondary • Easier to obtain than primary
information.
• Usually cheaper to obtain than
primary information.
• It was collected for another purpose so
might not be as useful.
• The information might be biased, which
would lead to wrong decisions being made.
Internal • Unique to the organisation and is
therefore relevant.
• The source is known and therefore
more reliable.
• Information might not be up-to-date or
complete, which means a wrong decision
could be made.
• Computer systems might be required to
store internal information, which would be
expensive.
External • Easy to obtain, saving the organisation
time.
• More information can be accessed
through, for example, the internet
compared to internal information.
• Source might not be known and could be
unreliable.
• The information might not be up-to-date,
meaning it might not be relevant anymore. 25