Presentation on theme: "Marketing May 2006 Learn Premium.com. Objectives Market research an understanding of the term "market research" the objectives of market research Methods."— Presentation transcript:
Objectives Market research an understanding of the term "market research" the objectives of market research Methods of market research an understanding of the different methods of conducting research an understanding of primary research an understanding of secondary research.
Market Research ……………. is the collating of information involving current and potential customers who constitute a market.
Two types of Market Research Primary/Field Secondary/Desk Research
Primary Research Primary research involves going out in the "field" to collect original information from as wide a variety of people and institutions as possible. The main advantage of this type of research is that the information is original and relevant. The main disadvantage is the cost involved in collecting,collating and analysing the data.
Primary Research …………… involves going out into the field to collect original information. Primary research involves finding out for the first time. It is therefore original and people have to be surveyed to collect the required information on a particular topic or issue. The maid disadvantage of field research is the ……….. involved in collecting collating and analyzing data.
Market Segmentation The consumer market for goods and services is divided nto different sections or segments. Each segment of the market may have common but also different needs. The firm will have to decide which segments of the market will find its products most appealing. It helps firms to increase sales because they find out which goods and services appeal to most customers in each segment. Assists with developing new products that will satisfy the needs of consumers in the respective segments.
Market Segmentation The segments are divided in terms of: Age The market is segmented into different age categories who usually have similar needs. Gender Some products are targeted specifically at a gender group, whilst others may have a unisex appeal. Ethnic group/religion Some goods and services are aimed at a specific ethnic or religious group, for example vegetarian, kosher orhalaal food may be aimed at Hindu, Jewish and, Muslim customers respectively..
Types of Segments Location This is becoming less important as people in all parts of the country mostly have similar needs. Socio-economic group Splits the market into sections based on occupation and income. Education Looks at level of education of consumer. Size and composition of the household Looks at number of adults and children in the household.
Segments The consumer for goods and services are divided into different sections or ……….
Methods of Research There are a number of ways in which field research may be conducted: People are asked to test and give their opinion on a product. Telephone people and ask them questions.
Methods of Research Face to face interviews where a trained person interviews a member of the public by means of a prepared questionnaire. Questionnaire is posted to people, but response may be low. Observers record reaction of people to street advertisement, displays of in-store products.
Random Sampling Random sample Only a percentage of the total population in an area is interviewed. Each person has an equal chance of being included in the survey. For example, 1% of the population in an area may be surveyed, however, this 1% should be representative of the entire population of that area.
Quota Sampling Quota sample Tight control is exercised over number of people to be surveyed. The population is stratified and interviewers are then given a specific number (quota) of types of people to interview, such as 10 house-owning accountants. The attribute essential to the typicality of the respondents is more important than the location or random selection. For example, if we wanted to interview red-headed women about a proposed new hair dye, we could send interviewers to a city in Scotland, a country where there are many red-headed people. This will cut down the costs of research, and provide each reviewer with a quota of women of different ages to interview.
Targeted Sampling Targeted sample This is where a group is targeted according to their occupation, geographical area, etc. For example the suppliers of medical equipment will target doctors. Unlike the stratified sample, the number of people interviewed is not tightly controlled (ie specific number or quota). The targeted sample will survey doctors in general, whereas the quota will stratify the doctors into different age groups as well.
Activity 1: Fill in the blank A…………………. is where a cross section of the population is surveyed.
Matching Activity 1) The attribute essential to the typicality of the respondents are more important than location or random selection. a) Random b) Quota c) Targeted 2) Suppliers of medical equipment will target doctors. a) Random b) Quota c) Targeted 3) Each person has an equal chance to be included in the survey a) Random b) Quota c) Targeted
Matching Activity Cont’d 4) Tight control is exercised over number of people surveyed a) Random b) Quota c) Targeted 5) The number of people interviewed is not tightly controlled. a) Random b) Quota c) Targeted 6) 1% of the population can be representative of the entire population of that area. a) Random b) Quota c) Targeted
Answers to Matching Activity Questions #3 and 6 are Random Questions #1 and 4 are Quota Questions # 2 and 5 are Targeted
Secondary Research Secondary or desk research refers to available information. It is therefore information which can be collected while sitting at a computer or behind a desk. Desk research therefore utilises secondary data as opposed to the primary data of field research.
Sources of Desk Research Two sources of desk research are: Internal sources Internal sources refer to information about the business itself. Examples financial records of the firm sales records stock records External sources External sources refer to information outside the business.
Sources of Desk Research Examples census information: counts the population but also collects data about the population, for example, family size, income, gender and age distribution, etc. Published materials -reports from: –business groups - Chambers of Commerce –the government - Office of population censusand surveys; Central statistical office –trade associations - official reports of the European Union –companies - company reports and financial statements –research - published in research journals –media - newspapers, business reports on TV, internet
Notes 1. Market research is conducted to establish as much as possible about consumers who may be interested in your products or services. 2. You need to consult as many resources as possible.
Notes 3. Some information has already been collected and analysed. This is known as secondary or desk research. 4. When you research information for the first time it is known as field or primary data/research. 5. The business also has its own internal sources of information such as sales records, feedback from customers, records of suppliers, financial statements, etc.
Analysing the market Censuswhere information is gathered about the entire population of a country by the governmentExternal sourcerefers to information outside thebusinessInternal sourcerefers to information about thebusiness itselfMarketthe number of people willing to buy aspecific product or serviceMarket researchmethod of finding out which currentand/or new products and services will satisfy the needsof consumersMarket segmentationprocess of identifying anddividing the market into group sections with similarneedsPrimary datainformation gathered by the businessfor the first timeQuota samplewhere the population is stratified andinterviewers are given a specific number of types ofpeople to interviewRandom samplewhen a certain number of peopleare asked about their needs irrespective of their age,gender, income, occupation, etcSamplea cross-section or percentage of the totalpopulationSecondary datainformation already researched byother organisations, available in reports, articles, etc
Notes 6. The business can make use of various methods when collecting information for the first time, such as questionnaires, telephone interviews, observation, face-to-face interviews, etc. 7. It is not always possible to interview all the people interested in your products or services, and therefore only a percentage or sample of potential customers is surveyed.
Vocabulary Census - where information is gathered about the entire population of a country by the government External source - refers to information outside thebusiness Internal source - refers to information about thebusiness itself Market - the number of people willing to buy aspecific product or service
Vocabulary Market research - method of finding out which currentand/or new products and services will satisfy the needs of consumers Market segmentation - process of identifying and dividing the market into group sections with similar needs Primary data - information gathered by the business for the first time Quota sample - where the population is stratified andinterviewers are given a specific number of types of people to interview
Vocabulary Random sample - when a certain number of peopleare asked about their needs irrespective of their age,gender, income, occupation, etc Sample - a cross-section or percentage of the totalpopulation Secondary data - information already researched byother organisations, available in reports, articles, etc
Q & A Are there any questions. Please design a flyer for a pizza store just opening in your neighbourhood. Be sure to make it unique.