Market Research

Market Research Types: Primary Secondary –Internal and External Quantitative –Group and In-depth Qualitative –Random sampling, Quota sampling, Stratified sampling and cluster sampling

Reasons for Market Research To ensure a business is providing the products which consumers want Helps avoid expensive business mistakes Assists with competitor information Helps with the target market Shows areas most successful Improves customer needs awareness Helps with price costings Helps focus attention on objectives Aids forecasting, planning and strategic development May help to reduce risk of new product development Communicates image, vision, etc.

Primary Research Made by direct contract with consumers and public * Questionnaires * Interviews * Observation* Focus groups * Consumer panels* Postal Surveys * Internet feedback* surveys * Telephone surveys* Face to face surveys

Secondary Research ‘Desk research’ using published statistics, data and other information previously collected 1.Internal sources 2.External sources

Secondary Internal Sources Company Accounts Store loyalty cards Internal reports Stock Analysis POS data

Secondary External Sources * Government Statistics (ONS) * Newspaper articles * EU - Euro Stat * Market Intelligence Reports * Trade press * Commercial Data * Magazine surveys * Trade Associations * Other firms’ research * Research documents – publications, journals, etc.

Qualitative Research In-depth research into the motivations behind attitudes and buying habits of consumers. Does not produce statistics Collected through 1.Group discussions 2.In-depth interviews

Quantitative Research Uses a very large sample of pre-set questions to provide statistically valid data Collected through 1.Random sample 2.Cluster sample 3.Stratified sample 4.Quota sample

Random Samples Everyone in the population has an equal chance of being picked Indiscriminate in who they choose to sample Sample sizes may need to be large to be representative Can be very expensive May be slow Method can be effective

Quota Sampling Customers selected in proportion to the company profile within the target market. Interviewers only have to achieve a quota therefore the times could be erratic. Sampled by segment not randomly Specific number on each segment are interviewed, etc. May not be fully representative Cheap to carry out

Stratified or Segment Random Sampling Samples on the basis of a representative strata or segment Interview those with the required characteristic Within the stratum of the population individuals can be found at random May give more relevant information May be more cost effective

Cluster Sampling Sampling only within a specified area

Associated problems of Market Research Information only as good as the method used Data can be inaccurate or unreliable especially if secondary Results may not be what the business wants to hear! Interpretation may not be exactly correct Always a problem that we may never know enough to be sure! The information collected may also be available to competitors Costly to the company especially if researchers employed or the process is lengthy