Stakeholders and Marketing All: Understand who are stakeholders and their influence upon a business All: Explain the purpose & methods of market research

Stakeholders

Employees / Owners / Managers / Private shareholders Stakeholders A stakeholder is any person or group of people with a direct interest in or is affected by the performance of a business. External Govt. / Community / Suppliers / Public Shareholders / School / Competitors Internal Employees / Owners / Managers / Private shareholders Questions. How do stakeholders and shareholders differ? Who will be the major stakeholders in your market day businesses?

Market Research Firms need market research to determine whether a product is likely to be successful before they launch it and also the potential current products have. Market research answers the following; What features are wanted? Would consumers buy the product? What price would they pay? Where would they buy it from? What type of consumer would buy the product? What type of promotion would be effective with these consumers? What is the competition like?

Types of research information Quantitative information This can be expressed in terms of numerical data. E.g. how many people in the market are aged between 15 and 20? How many ice creams did consumers buy last summer? Qualitative information Answers a question about opinions for beliefs and may require a judgement. E.g. What do consumers like about a particular flavour? Both types of information can be gathered using primary or secondary research.

Primary research Primary (or field) research involves the collection and analysis of original data. The research will answer the firm’s research question, but can be expensive to collect. Methods: Questionnaires Interviews Consumer panels Observations Experiments

Methods of primary research Questionnaires Can be conducted in person, over the telephone or by mail. Detailed information can be gained. Respondent’s opinions can be gained. Must be planned carefully or inaccurate information may be gained. Expensive Time consuming Respondent’s may not want to give personal information.

Interviews Interviewer (asks questions) Interviewee (answers questions) Interviewer must be well prepared and understand the questions. Interviewer can explain the questions. Detailed information can be gained. The interviewer may lead the interviewee and cause interviewer bias. Expensive Time consuming Respondent’s may not want to give personal information. Copy definitions of random and quota sample pg 248.

Consumer panels A group of people provide information on a product or their spending habits. Can be used to test new products. Detailed information can be gained. The opinions of others in the groups may lead to bias if one person can influence other’s opinions. Expensive. Time consuming. Respondent’s may not want to give personal information.

Observation This involves watching the behaviour of consumers. Can take the form; Recording – meters can be fitted to people. Watching – behaviour can be measured. Audits – stock could be counted to measure sales. Inexpensive. Does not provide evidence of opinions, so data may not give detailed information.

Experiments Tests are conducted to gain consumer opinions. E.g. taste tests of new products by consumers. Easy to set up and carry out. People may not be honest as they don’t want to offend the researcher. The sample of people may not be representative so a true opinion may not be gained.