1. Module 17
MARKET RESEARCH

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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