MARKET RESEARCH

Learning objectives
-To understand the difference between primary and secondary market research
-To understand how primary and secondary market research may be used by a business to help inform its marketing decisions

Primary Research
Secondary Research
Sampling Methods
Purpose

Primary Research

Questionarie
Focus Group
User Groups
Postal Survey
Telephone Surveys
Customer Interviews
Test Markets Technology-Internet Feed Backs

-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

Quantitative and Qualitative Information:
Quantitative – based on numbers – 56% of eighteen 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!


Secondary Research

Internal and External sources Sampling Methods:

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

Stratified or Segment Random Sampling
–Samples on the basis of a representative strata or segment
–Still random but more focussed
–May give more relevant information
–May be more cost effective

Quota Sampling
–Again – by segment
–Not randomly selected
–Specific number on each segment are interviewed etc
–May not be fully representative
–Cheaper method

Cluster Sampling
–Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population
Multi-Stage Sampling
–Sample selected from multi stage sub-groups
Snowball Sampling
–Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

Purpose

Size of market Market,Trends Forecasting, Planning, Evaluation of strageties/promotion, Assesing marketing mix ,Identifying Market Segments, Identifying Consumer Needs, Identifying Competition, Identifying Opportunities/gaps in the market and Reduce Disk

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

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!