Unit 3.1 Topic 1&2

Unit 3.1 Topic 1&2

1. Market Research

   • Market Research is the process of gaining information about customers, products, competitors etc, through the collection of primary (field) and secondary (desk) data.
     • Primary data is data that is original and has been collected first hand. Secondary data is data that already exists and was collected by someone else.
       • Quantitative research is data about facts that can be statistically analysed and/or expressed as numbers. Qualitative data is data about opinions.
   • Why research the market/
     • -To find our what customers want -To reduce the risk of product failing -To help firms decide which products to introduce or which products to kill off -To help firms understand how to improve products -To look at what competitors are doing
   • Stages of Market Research
     • --Designing the research (1. Think about the best methods of collecting the data to achieve these aims. 2. Does the firm want quantitative data (facts) or qualitative data (opinion)) --Undertake the research --Analyse the data 1. Charts/graphs 2... Reports
   • Researching the market
     • Secondary Research (Desk Research) Information that has been previoulsy collected and published: -Published materials-books,magazines etc -CD-ROMs -Internet -Government sources -Census etc -Previous research done by firms PROBLEMS:: -May be difficult to find exact data -information could be out of date -Data may not be accurate
     • Primary Research (Field Research) Information collected first hand: Sureveys --Face to face -- Telephone-quicker survey --Post-need to be targeted because response rates are poor --Electronic -email or online -One-to-one-in depth interviews -Focus groups -a gorup of people meet and provide information about a product -Product sampling - new samples are offered free of charge e.g in the supermakret -PPanels - a few people invited to test or talk about product over a period of time -Observing,tasting, testing
     • Surveys -Type of questions: --Open -no pre set answer given ,may be diffuclt to analyse becuase of variety of answers --Closed - multiple choice answrs , may create a problem if some answers are accidentally missed off Boolean - only two possible answers Yes/No v -- Preferences - puting a 1,2,3 against choices -- Scales -rating out of 10,5,3 etc BAD QUESTIONS : -Bias- giving a limited cnoice or phrasing a question so only only one answer could be made --Weasel words -phrasing the questio nso badly that it misunderstood or requires too much
     • SURVEYS: -Using questionaires-need to think about the follwing factors which will affect your results. --Where are you going to do it? --Which day? -- What time? --How many people? -The answers depend on what information you need to collect.
     • SURVEYS: -Analysing and evaluating questionnaires: --Tables -- Charts -- Graphs --Statistical analysis-&,mean,mode,median, range etc
     • SURVEYS: -Point for questionnaires --Business decides quesitons to ask --Everyone asked same questions --Can repeat to make sure more respondent understands --Easy to analyse. -Points against questionnaires: --Difficult to express own opinions --Brief and impersonal --Low return rates for some kind --Expensive and time-consuming -Designing questionnaires: -Simple,clear and easily understood questions --Relate to information needed --Not to many questions --Logical order -Record data quickly
     • SURVEYS: -Point for closed questions --People more willing to answer --Easy to analyse -Points against closed questions --Answer may not be there --No chance to give opinions -Points for open questions: --Can express opinions --Opportunit to develop answer -Points against open questions : --Each answer is different --Hard to analyse
     • SURVEYS : Sampling --Random-A percentage of the population is chosen, each having an equal chance of selection e.g. by using a phone book --Quota-population split into segments and a set number is chosen from each segment which reflects how the population is split --Targeted-asking only people who fit into a certain category --Sample size-large enough to reflect the market\95-10% is good)