Handout 14: Market research PowerPoint presentation Unit 320 (B&A 59): Principles of business Handout 14: Market research

Market research The formal gathering of information about what an organisation’s target customer base wants. Used to gather statistics/opinions in order: to find out what the target market wants to inform organisational strategy to inform new product/service development to understand how best to market a product/service.

Types of market research Primary Quantitative Qualitative Secondary Primary – this is first-hand research, where you collect opinion and gather statistics from your subject individuals. Quantitative is based on numbers which can then be analysed, eg rating a service from 1 – 5. Qualitative is based on opinions that give a general feeling about something. Best results are often obtained with a mixture of quantitative and qualitative research. Secondary – sometimes called desk research and is compiled often by looking at primary research carried out by others.

Primary research Advantages Can be targeted specifically to what you need to know Can be designed to gather both quantitative and qualitative data Researcher is in control of how much data is collected Disadvantages Cost Time-consuming Requires careful planning in order to be useful

Secondary research Advantages Easy to carry out Less time-consuming Cost-effective Disadvantages Not specific to need Questionable if sources are not properly scrutinised

Methods of carrying out primary market research Face-to-face interviews, eg in the street, door to door Telephone interviews Postal questionnaires Omnibus surveys Omnibus surveys collect quantitative data across a wide variety of subjects during the same survey on behalf of multiple clients, and provide a cost-effective method.

Types of sampling Occasional Random Stratified Quota Occasional – individuals present at an occasion, eg a conference. Random – individuals chosen at random. Stratified – within a category of the population, eg females aged 20-40. Quota – quantified number within a category, eg 500 employed females and 500 unemployed females, aged 20-40.

Types of information gathered Information on: Market trends Product – existing and potential for development Pricing – competitors’ and customers’ expectations Promotion – effectiveness and strategies Distribution – effectiveness of different methods

Characteristics of market research Has a purpose Systematic and planned Objectives stated in a clear, concise, attainable, measurable and quantifiable way Has a time frame Has a resource allocation, including a budget and facilities Is objective Uses both qualitative and quantitative data Should be a continuous process Collects, records and analyses information Provides solutions for marketing problem