CHAPTER 3

• This is new research; it is collected by the organization or by an agent hired by the organization. 


  Primary Research
• The most common to gather primary Research with the use of questionnaires or interview schedules.


  Survey
• It is one of the most reliable and credible ways of getting relevant information from target customers.

  Interview
• Interviews normally last for how long?

  15-40 minutes, or longer
• What does a researcher ask in a structured interview?


  A standard set of questions
• It is the traditional method of conducting an interview; it allows the researcher to establish relationship with potential participants and therefore gain their cooperation.

  Personal interviews
• They are less expensive and less time-consuming, but response rate is not as high as a face-to-face interview.

  Telephone interviews
• An excellent method for generating and screening ideas, concepts, by moderating group interviews and brainstorming sessions.

  Focus Group Discussion (FGD)
• This entails the researcher using information that had been published by other sources.

  Secondary Research
• Reports and record sales; customer buying history; return on investment 


  Internal (secondary research)
• Industry surveys, companies' annual financial reports, studies in journals, trade magazines, books, trade associations, mass media, banks.

  External (secondary research)
• Benefits of Conducting Market Research

  1. Allowing you to understand the nature and needs of existing customers to devise strategies effective in maintaining satisfaction.
  2. Assists the business in identifying and understanding potential customers.
  3. Reveal current position of firm in the marketplace to assess how much of goals has been achieved and plan the way forward from that.
  4. Helps in minimizing business risks.
• Key Elements of Market Research

  Product Characteristics
• Four concepts of the idea of total product (Levitt, 1980)

  1. The physical product or service provides core benefit to customer
  2. Expected product that includes attributes expected by customer
  3. The augmented product that his differentiated from the competitor and offers extra benefits.
  4. The potential product is the definitive product that the entrepreneur can provide the market.
• It is tangible and can be stored for future use.

  Goods
• It is intangible and cannot be stored.


  Service
• Key features of a service

  1. Intangibility
  2. Inseparability
  3. Perishability
  4. Heterogeneity
• It is a place where two parties can gather to facilitate the exchange of goods and services.

  Market
• It is part of the total population that has shown some level of interest in buying a particular product or service; Total Addressable Market (TAM)


  Potential Market
• Defined as the number of people who are both willing and capable of buying a particular product or service in a particular market


  Available Market
• Refers to a group of potential customers to whom a company wants to sell its products and services.

  Target market or served market
• A set of customers or clients who are already using a particular product or service. 


  Penetrated Market
• The researcher should be aware of fluctuating sales trends as this may point to new trends in the market; this will underscore which customer segments are experiencing highest sales growth or decline in monetary terms


  Expected Sales Trend
• This entails analyzing past time series; done according to elements such as trend, cycle, seasonal, and erratic. 


  Time Series Analysis
• This deals with a projection of the sales for the next period.

  Exponential Smoothing
• This entails a measurement of the impact of factors (causal) such as income and price on sales level.


  Statistical Demand Analysis
• It is a description or analysis of a typical or ideal customer for one's business.


  Customer Profiling
• It is a marketing tool that businesses use to understand their customers and helps make better business decisions.

  Customer Profiling
• Methods of Customer Profiling

  1. Geographic information
  2. Demographic information
  3. Psychological information
  4. Behavioral information
• Variables of Geographic information

  1. Climate
  2. Dominant ethnic group
  3. Culture
  4. Density (rural or urban)
• Variables of Demographic information

  1. Gender
  2. Age
  3. Income
  4. Occupation
  5. Education
  6. Religion
  7. Ethnic group
  8. Family size
• Variables of Psychological information

  1. Needs and wants
  2. Attitudes
  3. Social class
  4. Personality traits
  5. Knowledge and awareness
  6. Brand concept
  7. Lifestyle
• Variables of Behavioral Information

  1. Perceptions
  2. Knowledge
  3. Reaction
  4. Benefits
  5. Loyalty
  6. Responses