Research Methods MARKET RESEARCH (INTRODUCTION)

WHY DO WE NEED RESEARCH? Corporate planning Market planning Size of demand, market share, customers SWOT’s, competitors Market planning Key segments, profitability of segments Sales forecasting, customer needs Product planning Concept and produce testing, packaging tests

WHY DO WE NEED RESEARCH? Promotional planning Distribution planning Sales force, advertising, direct marketing Exhibitions, internet Distribution planning Channel selection, distribution costs Dealer/agent sales, stock, margins Price planning Correct strategy – penetration v skimming Comparison with competitors, customer perceptions

SECONDARY RESEARCH Research or information that has already been collected or completed, for example; literature, journals, accounts etc PRIMARY RESEARCH Research or information that is collected first hand by yourself, for example; surveys, interviews etc

TYPES OF RESEARCH DATA Continuous Ad hoc Desk research Measures trends and performance over time Ad hoc One off studies for an opportunity or problem Desk research Secondary research, quick, cheap to acquire Internal desk research e.g. accounting info. External desk research, existing sources Field research – off the peg Syndicated, share costs, omnibus, buys questions Made to measure

INTERNAL SOURCES FOR RESEARCH Existing (operating) data Invoices, orders, customer contact details Personal contact information Sales people, conferences, complaints Learning from the past Why things failed, previous research Decision report systems Comparison of forecast v actual Data mining

INTERNAL SOURCES FOR RESEARCH Sales statistics analysed by Product/product group, markets Outlets – what sells where, GEOGRAPHIC AREA Time period – seasonality, year on year comparisons

INTERNAL SOURCES FOR RESEARCH Expenditure statistics Relationships between sales and promotion Advertising and products Operational statistics Stock control, JIT – cost savings Transport – effectiveness and efficiency

EXERCISE 1 Secondary research Identify the problems and issues that have to be taken into account when using secondary data

EXTERNAL SOURCES Government published Trade Financial institutions Press, institutes, regulators Financial institutions Bank, stockbrokers Press FT, Times, Telegraph Foreign and international, specialist DTI Information brokers

SYNDICATED RESEARCH Sharing research costs Common data needs Continuous research Owned by the research company (Mintel reports) Market research society yearbook

EXAMPLES OF SYNDICATED RESEARCH AGB Advertising, confectionary, drink, food BMRB As above and media, technology, sports/leisure GALLUP Most sectors, politics MILLWARD BROWN Cars, travel, tourism TAYLOR NELSON Agriculture, energy, retail

OMNIBUS RESEARCH Sharing research costs Pay for own questions Cheapest form of research Continuous research Owned by research company

EXAMPLES OF OMNIBUS RESEARCH PHONEBUS Questions Friday, results Monday MORI’S OMNIBUS Three times a month CAPIBUS Face to face, computer assisted FLEXIBUS International research

EXERCISE 2 You are about to open a new hotel in North West Leicestershire Identify and explain the types and sources of secondary information that would help you to choose a suitable location As part of your building plan identify the data and information that will be collected as part of an on-going continuous research programme