3.2 (Market research)

• Why is market research important?


  • Successful selling of goods and services and generate profit
  • Business failure at risk
  • Knowing customers and adapting business correspondingly
  • What price will customers be willing to pay?
  • What is competition in markets like?
• Market research overview:

  • Market segmentation
  • Data collection
  • research design
  • Qualitative research
  • Quantitative research
  • Competitive analysis
  • Consumer Behaviour Analysis
  • Market size and forecasting
  • Data Analysis
  • Reporting and Presentation
• Primary research:

  • Collecting data firsthand
  • Interviewing
  • Focus groups
  • Observation surveys
  • Test market
  • Consumer feedback
  • Surveys
• Secondary research:

  • 'Desk research'
  • Internet(Tracking behaviour usage)
  • Government publications
  • Newspapers and magazines
  • Local library
  • Professional agencies
  • Business records
• Pros and Cons of Primary research:

  Pros:

  • Can get specific information for company/ activity
  • Asking actual customers targeted, which are more appropriate
  • Firsthand information gathered
  • Complex questions can be asked with emotional/ feelings and opinions (Qualitative research)

  Cons:

  • Can be more expensive that secondary; especially new firms
  • Likely to be rejected by some respondents/ not taken seriously
  • May not answer truthfully/ emotional and off topic or personal questions
  • Interviewer bias- can ask leading questions- as well as being subjective
• Pros and Cons of Secondary research:

  Pros:

  • Accessibility
  • Low cost
  • Saves time
  • May help clarify research questions
  • Government and agencies
  • Understand the problem
  • New conclusion or data

  Cons:

  • Quality of research
  • May not full-fill research's need
  • Incomplete information (Half truth)
  • Outdated information
  • Lack of quality
• What is qualitative research?

  • Exploring ideas or formulating hypotheses/ theories
  • Summarising, categorising, interpreting
  • Words
  • Few respondents
  • open-ended
  • Understanding, context, complexity, subjectivity
• What is Quantitative research?

  • Testing hypotheses or theories
  • Math and statistical analysis
  • Numbers, graphs, tables, fewer words
  • Many respondents
  • Close-ended or multiple choice
  • Testing, measurement, objectivity, replicability
• Sampling:

  • Subset of population representa the whole of the entire group
  • Often impractical to survey every single person from population
  • Random sampling occurs when random people are picked for research
  • Quota sampling is when people are chosen based on characteristics (Age, gender, location etc)

  
• 5 Factors driving need for sample:

  • Difficulty reaching audience
  • Limited time horizon
  • Budget flexibility
  • Larger sample size requirement
  • Limited human resources
• Accuracy of market research data:

  • Same may be too small
  • Wrong methods chosen
  • People may lie
  • Questions asked in interviews may not be the best -> 'Leading questions'
  • Secondary data out of date
  • Data might not be specific
• Presentation of data:

  Qualitative -> Written format ( reports etc)

  Quantitative -> Visually

  • Key to all presentation of data is analyses and meaning
  • When presenting connection is key!
• Bar chart:

  • easy to see numerical values
  • Can be difficult to compare when similar or context of data

  
• Tables:

  • Clear to read and organise information
  • Lacks visuals and sometimes too much content

  
• Pie charts:

  • great visuals
  • Very easy to understand
  • Sometimes too many slices
  • It doesn't always capture context.. biggest is not always the best

  
• Additional ways of presenting:

  • Line graphs
  • Pictograms