Module 17 MARKET RESEARCH

But there is more to it than that WHY DO MARKET RESEARCH? Market research is commonly seen as finding out if a product or service will be successful But there is more to it than that Market research can have many different purposes

RESEARCH PURPOSES To identify customer needs and then meet those needs To learn about customer attitudes and values To help develop products and services that meet identified needs. To discover sales trends To find out about competitors’ activities To measure the effectiveness of promotional activity To classify customers into groups or types

HOW IS IT DONE? Unique research that uses surveys, interviews and questionnaires to find out about markets This is known as ‘primary’ research Using existing information such as internal or external records and statistics to learn more about markets This is called ‘secondary’ research

WHY USE DIFFERENT METHODS Each different method has its advantages and disadvantages Each may only be appropriate in certain circumstances Users need to work out if the method is right for them according to its cost, reliability, validity, accessibility and the time it will take to gather

Market research Market research is to do with collecting information about consumers and the characteristics of markets It involves using surveys, polls, focus groups and other methods to gather information

Some examples of market research So, market research is about collecting useful information in order to improve organisations’ marketing activities. Information can be obtained from at least six different sources

Internal company information Relevant trade literature Newspapers Information sources 1. Literature search Getting hold of all available material on a particular theme. Material is gathered from: Internal company information Relevant trade literature Newspapers Magazines Firms’ annual reports

Useful in the early stages Information sources 2. Talking to people Useful in the early stages Includes meetings with customers and suppliers It generates opinions and may be unrepresentative of the whole population

Explore ideas and attitudes Test new approaches Generate a discussion Information sources 3. Focus groups These are used to: Explore ideas and attitudes Test new approaches Generate a discussion But they involve a small sample and may not mirror the overall population

Produce in depth information Are carried out face-to-face Information sources 4. Personal interviews Produce in depth information Are carried out face-to-face Can be very expensive Usually involve the interviewer asking questions from a written questionnaire or from a list of topics

Information sources 5. Telephone surveys The fastest way of gathering information, especially from large sample sizes A prepared script is used as with written questionnaires, but a phone survey allows opinions to be tested further

Information sources 6. Postal surveys Ideal for large sample sizes If sample covers wide area Generally cost less than telephone interviews But take longer to complete No interviewer, so less chance of personal bias Unable to probe for more detailed information

Activity to find out more about Selecting a sample to base research on and The pros and cons of conducting a written questionnaire