- Market Research
- Concerned with finding out whether consumers will buy a product or service, and is done by analyzing consumer reactions
- Reasons for market research
- Reduce the risks associated with new product launchesPredict future demand changes
- Explain patterns in sales of existing products and market trends
- Assess the most favored designs, flavors, styles, promotions for a product
- Market research process:
- Identify consumer needs and tastes
- Primary and secondary research into consumer needs and competitors
- Product idea and packaging designs
- Testing product and packaging with consumer groups
- Brand positioning and advertising testing
- Pre-testing of the product image and advertisement
- Product launch and after launch period
- Monitoring of sales and consumer response
- Identify consumer needs and tastes
- Types of market research
- Primary research
- Gathering data or feedback first-hand, through
- Questionnaires (short and focused, allows open-ended questions)Observation (foot traffic, queuing time)Sampling (new product or campaigns)Focus groups (asking groups of people)Interviews
- Up to date
- Gathering data or feedback first-hand, through
- Primary research
- More relevant/directConfidential and uniqueObjective
- Time consumingCostlyQuestionable validity
- Secondary research
- Collecting second-hand information from other sources like
- Market analyses (shows relevant market data)Government publicationsAcademic journalsMedia articles
- Collecting second-hand information from other sources like
- Advantages
- Cheaper and faster
- Advantages
- Range of sourcesInsight to trends
- Disadvantages
- May become obsolete or out of date quickly
- May be in an inappropriate formatPartial information
- Widely available to competitors
- Qualitative vs. quantitative research
- Qualitative research
- Used to get feedback to understand motivation , behavior, perception through focus groups, expert panels, in-depth interviews of credible individuals
- Qualitative research
- Qualitative explores attitudes and opinions and can be very deeply relevant even if only few are interviewed
- Can only give an indication and does not have statistical relevance.Relatively inexpensive but harder to analyze, more time consuming, and results are subject to bias or skill of interviewer
- Quantitative research
- Used to get statistical data from total (for figures) or representative sample (for opinion, decisions), using interviews that have closed questions or use ranking or sliding scales
- Quantitative can only ask factual answers but may not reveal reasons why
- A larger representative sample is needed and must be designed well so it ends up more costly to undertake
- Sampling
- Consumer surveys ask consumers for their opinions and preferences
- It can obtain both qualitative and quantitative information
- How many…..What do you look for….
- What to ask?
- Questions are unbiased and unambiguous
- Should the survey be self-completed or filled in by an interviewer?
- Accurate and valid
- It is impossible to ask everybody even if it is just potential members of a target marketA sample reflects the characteristics of the survey populationSample should be significant and valid to avoid sample error
- Sampling methods
- Random sampling
- Random selection, based on the principle that everyone is given equal chance
- Segmentation with number of respondents per group based on proportion to the population
- Random sampling
- Majority of the population will compose of majority of the survey
- Used for localized surveys (e.g. towns, region, etc.)Sample based on a geographic location/ concentration of the target
- A certain number or quota is set, made up of samples from each segment or random
- Respondents are networked from a respondent’s referral
- Convenience sampling
- Respondents are chosen based on accessibility and proximity
- It can obtain both qualitative and quantitative information
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