market research

http://www.bized.co.uk

Copyright 2006 – Biz/ed

Market Research



Secondary Research



Existing SourcesInternal Sources• Company Accounts• Internal Reports and

Analysis• Stock Analysis• Retail data - loyalty cards,

register data, etc.

External Sources• Government Statistics• Trade publications• Commercial Data - Gallup,

Mintel, etc.• Household Expenditure

Survey• Magazine surveys• Other firms’ research• Research documents –

publications, journals, etc.



Primary Research



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



Sampling Methods



Market Research

• Random/Segment Sampling– Samples on the basis of a

representative segment– Random– May give more relevant information– May be more cost effective



Market Research

• Random Samples – equal chance of anyone being picked– May select those not in the target

group – indiscriminate– Sample sizes may need to be large

to be representative– Can be very expensive



Market Research

• Concept Testing– Description in Writing– Likes and Dislikes– Willingness to Buy



Market Research

• Geographic Test Market– Primarily based on geographical areas or

‘clusters’ that can be seen as being representative of the whole population

• Direct Market Testing– Testing Certain Households

• Focus Groups• Snowball Sampling

– Samples developed from contacts of existing customers – ‘word of mouth’ type approach!



Outline your “Areas of Questioning”

Such as:A. Shopping Habits among customers for this store and other similar stores.

B. Level of Customer Service Satisfaction today and in the past.

C. Demographic Questions



Designing Your Survey

• Use close ended questions as much as possible.

• Yes/No• Multiple Choice• Likert Scale (1-10, with

1=poor, 10=excellent)



Market Research

• Quantitative and Qualitative Information:

• Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how

• Qualitative – more detail – tells you why, when and how!



How many surveys to conduct?

• If your survey is among consumers (B2C) a good number of completed surveys would be 50-60 (try for 100!).

• If you are conducting a survey among business people: B2B (25-30 surveys would be fine).



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!



Research Lab Center

Your Assignment



Kool Is Cool

• To increase market share in the refrigerator market by developing the first refrigerator with options

• Sold in the same way as new cars with each person ordering the features they want

• Target market is second-time buyers 30-50 years old



Smiles Toy Company

• Toy that will sell well in the holiday rush• Market is 3-10 years of age• Develop a product that will position itself well

in this market segment• Management team needs you to inteview

parents of children in this age group. Find out wants and needs that parents look for in toys to satisfy their small children



94 Fifty



Holo Generator

• Innovative product like a Holo-Generator

• Fits in the size of your hand• Plays three-dimensional music

videos through sound and holographic images.



Hints

• Brainstorm questions to ask a segment

• Make sure segment is accurate for product

market research

Documents