TOPIC 1 MARKETING RESEARCH INTRODUCTION

Marke&ng Research
o is the systema*c gathering, recording and analyzing of data
about problems rela*ng to the marke*ng of goods and
services.
o focuses and organizes marke*ng informa*on. It permits
entrepreneurs to:
• Spot current and upcoming problems in the current
market
• Reduce business risks
• Iden*fy sales opportuni*es
• Develop plans of ac*on

Market Research
o It will give you the data you need to iden*fy and reach your
target market at a price customers are willing to pay.
o Successful marke*ng requires *mely and relevant market
informa*on.
o An inexpensive research program, based on ques*onnaires
given to current or prospec*ve customers, can uncover
dissa*sfac*on or possible new products or services.
o is not a perfect science. It deals with people and their
constantly changing feelings and behaviors, which are Market Research in the product/service life cycle
influenced by countless subjec*ve factors.
o To conduct market research, you must gather facts and
opinions in an orderly, objec*ve way to find out what
people want to buy, not just what you want to sell them.
o Market research will iden*fy trends that affect sales and
profitability.
-Popula*on shiMs
-Legal developments
-The local economic situa*on should be monitored to
quickly iden*fy problems and opportuni*es
• Keeping up with compe*tors' market strategies also is
important.

WHY DO MARKET RESEARCH?

• People will not buy products or services they do not want.
• Learning what customers want and how to present it drives
the need for marke*ng research.
• Small business has an edge over larger businesses in this
regard.
• Small business owners have a sense of their customers' needs
from years of experience, but this informal informa*on may
not be *mely or relevant to the current market. Informa&on that can be obtained through Market Research
• Analyze returned items. • Market Size and Structure
• Ask former customers why they've switched. • Methods used to assess market size and structures
• Look at compe*tors’ prices. • Use of and AMtude to Products
• Formal marke*ng research simply makes this familiar process • Methods used to assess use and aMtudes
orderly. It provides a framework to organize market • Customer Sa&sfac&on and Loyalty
informa*on. • Methods used to assess customer sa&sfac&on
• Product tests/concepts
Market Research can be SIMPLE or COMPLEX • Methods used to assess products
• Segmenta&on
• Methods used to assess segmenta&on
 TOPIC 1 MARKETING RESEARCH INTRODUCTION
Difference between Business Research and Other Disciplines o Qualita&ve Market Research
- It is usually collected from smaller sample sizes.
Business Research - The goal of this type of research is to ques*on and
o Any research conducted by a business or an organiza*on observe what people say, do, and how they react to
that needs to make a business decision. By the very nature certain situa*ons or ideas.
of this, it varies in its approach and scope, meaning that it - Ques*ons are usually open-ended, and it is up to the
can be closer and further from conducted in other respondent how they answer each ques*on.
disciplines. - (no predetermined answers)
o Quan&ta&ve Research
• Cross discipline approach/ Mul&-func&onal teams - It usually involves structured ques*ons, where
- made up of business are differing units and/or responses to those ques*ons are predetermined,
departments. Each of these departments have their and respondents choose between one of the
own interest and require their own informa*on. predetermined answer.
- The informa*on for research may need to come from - Sample sizes are generally larger (more people
various departments and from a range of experts. surveyed).
• Informa&on is hidden by compe&tors
- Business secrets are commonplace in many
industries. This commercially sensi*ve informa*on is
seen as being a source of compe**ve advantage by
most companies.
• Business research cannot be as theore&cal and must be 1. Define the Research Problem and Objec&ves
experimental - researcher needs to define the problem they are trying to
- Businesses are complex systems. Complex systems solve with their research.
that do not abide by physical laws or follow models - The researcher has to define their objec*ves and decide on
precisely. the type of research they will conduct:
- There are a lot of (some*mes subjec*ve) informa*on o Descrip*ve – describe a situa*on, event, market or
about market condi*ons, poli*cal decisions, and customer group
other company’s decisions and economic ac*vity. o Exploratory – collec*ng preliminary informa*on to
- Business studies must be based on experiments and understand the problem and develop hypotheses.
trials to be effec*ve and accurate o Causal – exploring cause and effect.
• Businesses are not objec&ve by nature
2. Develop the Research Plan
- Business are in compe**on for profit. Because of this,
- develop the research plan. During this step, they decide
companies make decisions in their best interest.
whether they will be collec*ng primary or secondary data and
Studies conducted by business may not be en*rely
the type of research method they will use (surveys, focus
impar*al or may have an agenda.
groups, etc.)
- This also involves coming up with a sampling plan. Sample
TYPES OF MARKET RESEARCH
could either:
o Random – all people in the sample have an equal
o Primary Market Research
chance of being selected.
- Involves collec*ng data based on a research problem
o Convenience- choosing the people that volunteer to
or ques*on that is specific and unique to the business.
take part.
- It can be carried out by the company itself or an
o Judgement – deliberately choosing certain people.
external organiza*on, but the data collected will be
brand new. 3. Collect the Data
- It oMen involves gathering data on the business’ - During this step, the research conducts the research.
exis*ng customers.
4. Data Analysis
- Collected through surveys, focus groups, interviews,
- researcher uses various sta*s*cal tools if they are conduc*ng
and ques*onnaires.
quan*ta*ve research or analyses different interview if they are
o Secondary Market Research
conduc*ng qualita*ve research.
- Has been collected before for purposes other than
the research ques*on or problem at hand. 5. Present Findings
- Secondary data can be collected both internally and - researcher will format their analysis and data into details
externally. insights- translate data into valuable recommenda*ons for
- This could include things like sales and inventory managers.
records of the company (internal), internal research
(external), market reports (external), or informa*on 5. Make a Decision
from the census (external). - this is where the organiza*on would decide how to tackle the
problem they were researching with the researchers’ findings.