Marketing 10.1

Chapter Overview The meaning of market research The difference between primary and secondary market research Method of gathering information Sources of information Methods of sampling How to assess market research findings The importance of cost effectiveness in market research

The Market Research Process 1. Defining the problem and objectives 2. Developing the research plan 3. Collecting the information 4. Analysing the information 5. Presenting the findings Steps Comments Distinguish between the research type needed e.g. - exploratory - descriptive - causal Decide on - budget - data sources - research approaches - research instruments - sampling plan - contact methods Information is collected according to the plan (N.B. it is often done by external firms) Statistical manipulation of the data collected (e.g. regression) or subjective analysis of focus groups Overall conclusions to be presented rather than overwhelming statistical methodologies If a problem is vaguely defined, the results can have little bearing on the key issues The plan needs to be decided upfront but flexible enough to incorporate changes/ iterations This phase is the most costly and the most liable to error Significant difference in type of analysis according to whether market research is quantitative or qualitative Can take various forms: - oral presentation - written conclusions supported by analysis - data tables

What is Market Research? Market research involves the gathering and analysis of data that is relevant to your marketing. Things you may want to know: The size of the market The key market trends What customers value about the market Key characteristics of customers (customer profile)

Why Do Market Research? Typically, market research is used to: Identify market opportunities This maybe done before a business is even started Assess the alternative options open to the business to meet customer need Assess the effectiveness of different marketing actions

Top 10 market research activities Market Measurement18% New Product development/concept testing14% Ad or brand awareness monitoring/tracking13% Customer Satisfaction (inc Mystery Shopping)10% Usage and Attitude Studies7% Media Research & evaluation6% Advertising developing and pre-testing5% Social Surveys for central/local government4% Brand/corporate reputation4% Omnibus Studies3% Source: BMRA

Marketing 10.2

Primary and Secondary Market Research Primary market research gathers data for the first time for a specific purpose. Secondary market research uses that data that already exists.

Secondary Market Research Usually quick and much cheaper then primary market research. Sometimes not the correct format that you might need. It could be out of date. Usually secondary data is a good starting point.

Primary or Field Market Research Primary Research First hand information Expensive to collect, analyse and evaluate Can be highly focussed and relevant Care needs to be taken with the approach and methodology to ensure accuracy Types of question – closed – limited information gained; open – useful information but difficult to analyse

Be Careful When Getting Primary Research Don’t have questions that lead people into giving you the answer you want. Ask several people from your target group. Ask enough people to make the findings significant.

Primary Data Can be Gathered by: Observation – for example you may watch what is happening in the stores of your possible competition. Through surveys – you may stop people on the street and ask for their opinion. Small groups known as focus groups. Testing the market itself.

Purpose

Market Research Advantages of Market Research Helps focus attention on objectives Aids forecasting, planning and strategic development May help to reduce risk of new product development Communicates image, vision, etc. Globalisation makes market information valuable (HSBC adverts!!)

Market Research Disadvantages of Market Research Information only as good as the methodology used Can be inaccurate or unreliable Results may not be what the business wants to hear! May stifle initiative and ‘gut feeling’ Always a problem that we may never know enough to be sure!

Homework Marvel and DC Comics Africa Questions 1-3 Page 104 Due Thursday November 19th