MANAGEMENT OF MARKETING METHODS OF MARKET RESEARCH

LEARNING INTENTIONS/SUCCESS CRITERIA I understand the role of market research in the marketing activities of an organisation. SUCCESS CRITERIA: I can explain WHY organisations would carry out market research I can describe HOW organisations can carry out market research I can describe the different types of market research that organisations may use I can explain why organisations may choose a particular type of market research

EXAMPLE OF POOR MARKET RESEARCH http://www.tes.co.uk/teaching-resource/Market-research-and-branding-mistakes-6173838/

WHAT WENT WRONG … Coca-Cola discovered it was losing out to rival Pepsi so it introduced New Coke. Unfortunately, millions of Americans decided they hated New Coke and responded to the change in formula as if the organisation had killed off a beloved member of the family. The lessons from Coke's mistake are avoid basing decisions on biased research, stay close to customers and know what makes you or your product special. SO, LET’S SEE HOW MARKET RESEARCH SHOULD BE DONE!

DESK RESEARCH Recap: What is it? Give some examples Any advantages? Any disadvantages?

DESK RESEARCH Desk research involves finding and REUSING EXISTING INFORMATION about a market for your specific purpose. This “reused” information from desk research is known as SECONDARY INFORMATION. This type of research therefore DOES NOT INVOLVE DIRECT CONTACT WITH CONSUMERS (as it can be done by sitting at a desk).

INTERNAL DESK RESEARCH EXAMPLES These are sources of market research information from INSIDE of the business. They often focus on information about the business itself. Examples include: SALES FIGURES PROFIT FIGURES PRODUCTION FIGURES STOCK LEVELS

EXTERNAL DESK RESEARCH EXAMPLES These are sources of market research information from OUTSIDE of the business. They provide information about what people outside of the business think about it and the market in general. Examples: GOVERNMENT OR INDUSTRY STATISTICS AND REPORTS eg Census COMPETITORS’ BROCHURES AND WEBSITES MAGAZINE AND NEWSPAPER ARTICLES

BENEFITS OF DESK RESEARCH Desk research is RELATIVELY CHEAP to collect as time and money does not have to be spent collecting new information. Desk research provides market research information RELATIVELY EASILY and QUICKLY as it is already available and so time does not have to be spent collecting new information. The speed with which (especially internet based) desk research can provide information means that it can provide access to a wide range of both INTERNAL (information from inside of the business) and EXTERNAL (information from outside of the business) market research. This can help make sure that decisions are well thought out by using a FULL picture of the market. It is valuable when quick decisions need to be made.

DRAWBACKS OF DESK RESEARCH Desk research uses information that already exists and so: this information may only be able to provide BROAD rather than specific market research information – this may not be very helpful for decision making. For example desk research may show that sales are falling – but not be able to explain why. this information may be less than useful because it has become OUT OF DATE. you may not know if it is INACCURATE because you did not carry it out. if nothing is available on a topic (eg a new market) then it will be unable to provide any market research.

Task Complete Worksheet 23 Desk Research Task

FIELD RESEARCH Recap: What is it? Give some examples Any advantages? Any disadvantages?

FIELD RESEARCH Field research involves gathering NEW INFORMATION about a market for your own specific purpose. The information that field research creates is known as PRIMARY INFORMATION. This type of research therefore does usually require DIRECT CONTACT WITH CONSUMERS.

TYPES OF FIELD RESEARCH PERSONAL INTERVIEW Here the business uses a face-to-face discussion to ask consumers questions about what they think about the business and its’ market. This is good because: it allows a 2 way conversation about issues and so can clear up any misunderstandings and get extra detail to answers. the information it provides will be of high quality. The main drawbacks of this method are: consumers may not have the time to talk or be unhappy to do so - this can mean it is hard to collect research this way. It also takes time for staff to do it which costs money for wages

METHODS OF FIELD RESEARCH ONLINE SURVEY Here the business uses an internet website to ask consumers questions about what they think about the business and its’ market. Consumers can be directed to this website from information on texts, emails, receipts or the business website. This is good because: it does not require a lot of staff time and wages because computers collect or analyse the information. consumers may be more willing to provide information because it is quick and they can answer at a time which suits them. The main drawback of this method is that it is not a 2-way method of communication and so it can be hard to clear up any misunderstandings or get extra detail.

METHODS OF FIELD RESEARCH TELEPHONE SURVEY Here people are contacted by telephone and asked to answer questions. This is good because: a large number of people from all over the country can be contacted it is less expensive to carry out than a personal interview misunderstandings can be cleared up as it is a 2-way communication. The drawbacks are that it is difficult to find a suitable time when people are willing to answer questions by telephone and most people do not want to participate in long surveys by telephone.

METHODS OF FIELD RESEARCH POSTAL SURVEY Here people are sent a questionnaire by post. They will then have to complete the questionnaire and send it back to the business. This is good because: people can complete the questionnaire at a time which suits them people can be targeted over a wide geographical area The drawbacks of this are: people may just bin the questionnaire it takes time to have the questionnaires returned the questions may be read differently by different people and there is no opportunity for clarification.

METHODS OF FIELD RESEARCH HALL TEST This involves a product being given to a selection of customers to try and then getting their feedback on it. This is good because the customers can report back on their actual experience of using the product. This is not so good because the customers will give their personal opinion which can be hard to analyse, or they may just tell the business what they think they want to hear so as not to appear rude.

METHODS OF FIELD RESEARCH FOCUS GROUP This involves putting together a group of selected customers and asking them questions about a product or service to stimulate a discussion. This is good because: The feelings and views of the people in the group can be observed Any points of misunderstanding can be clarified This is not so good because: It is time consuming and expensive to carry out The sample of people used in the group may not be representative of all the potential customers.

METHODS OF FIELD RESEARCH OBSERVATION This involves watching customers and recording their actions eg how many customers visit a business or what their reaction to a situation is. This is good because: Facts and figures are gathered which are easier to analyse than people’s opinions. People are not aware they are being observed and are therefore more likely to act naturally This is not so good because: There are privacy and ethical issues to consider when observing people The customers are not asked for reasons for their actions.

METHODS OF FIELD RESEARCH EPOS [ELECTRONIC POINT OF SALE] This involves gathering information when customers are paying for purchases by debit or credit card at the checkout. This is good because: Large quantities of information can be gathered The information is factual rather than customer’s opinions and so can be easily analysed This is not so good because: It is expensive to purchase an EPOS system, especially for a small business No opportunity to gather customer opinions.

METHODS OF FIELD RESEARCH SOCIAL NETWORKING SITE This involves using sites such as Facebook and Twitter to gain feedback from people on goods and services and their reaction and opinion on different issues affecting the business. This is good because: Large numbers of people can be reached Information can be gathered quickly It is a 2-way communication between the business and its customers This is not so good because: Customers may not want to join the social networking site of the business Information put on the sites is not usually private and may be viewed by anyone

METHODS OF FIELD RESEARCH COMMENT CARDS Here the business uses a card (which is usually available at tills, service desks or at the point of service eg a hotel room or restaurant table) to gather comments from consumers about the business and its’ market. This is good because it does not require a lot of staff time and wages to collect the information. Consumers can also use it at any time so it allows a business to collect ongoing research easily. The main drawback of this method is that it is not a 2-way method of communication and so it can be hard to clear up any misunderstandings or get extra detail.

TASKS Complete Worksheet 23 Field Research Task and then do Worksheet 24.