4.4 Market Research

Learning Outcomes To understand why and how organisation s carry out market research. A02 To have working knowledge and understanding of the following primary research methods – surveys, interviews, focus groups, observations. A02 To have working knowledge and understanding of the following secondary research methods – market analyses, academic journals, government publications, media articles. A02 To be able to analyse the ethical considerations of market research. A03 To know the difference between qualitative and quantitative research. A02 To have working knowledge and understanding of the following methods of sampling – quota, random, stratified, cluster, snowballing, convenience. A02

Central Question Market Research: Is it really Necessary?

What is Market Research? Market Research is the process of gaining information about the market (customers and competitors) through the collection, analysis and reporting of data related to a particular market ADHOC CONTINUOUS When necessary Regular & ongoing

Research Methods There are 2 methods of Market Research Primary Research Secondary Research The collection of new and original information (primary data) for a specific purpose Looking into and examining existing published information (secondary data)

Which ones apply to the techniques/methods that you need to know: Secondary Research Which ones apply to the techniques/methods that you need to know: Market analyses Academic journals Government publications Media articles Finding secondary sources of information either in paper based or internet based Books Magazines Newspapers Market Reports (Mintel, Keynotes) Academic Journals Government statistics Trade Journals Competitor publications (annual reports) What are the advantage/limitations of secondary data? Complete task on next slide.

Task - 5 mins Create & share a Google Doc. Pair up and tackle Ads and Disads for your secondary market research method Secondary Method/Technique Advantages Disadvantages Academic Journals Media articles Government Publications Market Analyses

So…Which Secondary Method is Best?

There is no best method but some methods could be more appropriate in a given context. How old the data is could aid your decision of which method(s) are most appropriate. Ideally a combination of methods is likely to increase accuracy and reliability whilst offering a broader overview.

Primary Research Can you think of what primary research methods a firm could use? Where might a business obtain secondary data from?

Types of Primary Research Questionnaires/Surveys Interviews Focus Groups Observations How might questionnaires be carried out? How might interviews be carried out? What would be the advantages and limitations with each of these options? Complete task on next slide.

Task - 5 mins Create & share a Google Doc. Pair up and tackle Ads and Disads for your primary market research method Primary Method/Technique Advantages Disadvantages Questionnaires / Survey Interviews Focus Group Observations

So…Which Primary Method is Best?

Focus Groups Small groups of consumers discuss a product led by a researcher Provides in-depth information Can uncover unanticipated problems Danger of group-bias Often used to make decisions on packaging/advertising

Interviews In depth discussions Avoid chance of group-bias However interviewer could bias conversation to achieve the required results

Ethical considerations of market research Research and find one example of each of the following. Make and share on googledoc Ethical Consideration Definition / Meaning Example 1 (evidence) Example 2 Deceptive Practices Invasion of Privacy Breaches of Confidentiality Objectivity

Qualitative vs Quantitative Research Qualitative Research Quantitative Research Data collection on opinions, attitudes, thoughts, beliefs emotions. Results can be difficult to analyse and can be subjective (open to interpretation) Key phrase used is “why?”. Researcher is part of the process Expensive & time consuming Collecting numerical data that can be measured Results less open to interpretation – harder to argue with numbers Objective (although bias can still occur) Questions – How many? How often? Researcher is separate Narrow focus Which methods of primary research would be used for qualitative research?

So…Which is Best? DISCUSS QUANTITATIVE QUALITATIVE or DISCUSS Look at some questionnaire examples on the next slides to help aid discussions

Questionnaire design

Look at the following example questionnaires What is good/bad about them?

Questionnaire design The questions need to be asked in a logical order The questionnaire must not be too long Difficult questions should be at the end of the questionnaire Personal questions such as those about age or hygiene should be phrased sensitively it is important that questions are: are easy to understand cover every possible answer are unbiased (they do not lead respondents to give a particular answer) unambiguous (they have a clear meaning).

Sampling The only way to gain a “True” and “accurate” picture of the market is to ask everyone. Is this possible / feasible? NO! Therefore, the idea is to select a group (sampling) that will represent the population as a whole (sample)

Sample Size The SAMPLE SIZE is the number of people within the sample The sample size will be a trade-off between cost and accuracy Bigger sample sizes will give greater ‘confidence levels’

Choosing the Sample How might it choose the sample? Once the business has decided on how many people it will survey, they then need to choose who these people will be….. This is done using a sampling method How might it choose the sample?

Sampling Methods Quota Random Stratified Cluster Snowballing Convenience What does each of these sampling methods involve?

Quota Sample Aim is to obtain a sample that is "representative" of the overall population; In quota sampling, the researcher aims to represent the major characteristics of the population by sampling a proportional amount of each. quota sample (proportional to the whole population) is chosen by the interviewer Advantages/limitations?

Example Quota Sample Category Sample size Males 60 Full Time 54 E.g. If the whole population is 60%% male and 40% female, with 90% of the population being full time and 10% being part time. A sample of 100 people would be selected as per the following quotas: Category Sample size Males 60 Full Time 54 Part Time 6 Females 40 32 8

Random Sample Everybody within the population has the same chance of being picked for research. This is like putting the name of everyone in a “hat” and picking out a percentage of the total to research. Advantages/limitations? + Risk of bias minimised The people selected may not be part of the target group Sample sizes need to be large to get meaningful results

Example….. A firm has a workforce of 1000. Of these: 600 are male 400 are female What percentages are these? If the business wants to do a survey of 100 employees how many males and females should they ask?

Survey Sample Category Sample size Males 60 Full Time 54 Part Time 6 Females 40 32 8

Stratified Random Sample This is a way of choosing people making sure a fair spread of people are used. This is usually done by splitting up the population into certain strata based on similar characteristics. Once this has been done a random sample will be done on each group of people. Advantages/limitations?

Cluster Sampling Units in the population can often be found in certain geographic groups or "clusters" A random sample of clusters is taken, then either all or a sample of people within the cluster are examined Advantages/limitations?

Snowballing Advantages/limitations? Surveys/Interviews are carried out with individuals who then suggest other friends/family/colleagues Useful if the business is unable to get hold of appropriate respondents Advantages/limitations?

Convenience Advantages/limitations? Groups selected based on ease of access and proximity to researcher i.e. choosing the first 10 people you see Advantages/limitations?

Task – 5 -10 mins Create & share a Google Doc. Pair up and tackle Ads and Disads for your sampling method Sampling Method Advantages Disadvantages Quota Random Stratified Cluster Snowballing Convenience

Criteria for choice of sampling method Available budget Required accuracy Time constraints Availability of population

Results from data collection The data collection process should strive for a high degree of accuracy whilst ensuring integrity and ethics. Benefits of data collected properly include: > ability to answer the research questions posed > increased accuracy of findings > opportunities for other researchers to pursue

SO…IMPORTANT TO MINIMISE OR AVOID IF POSSIBLE! Types of Errors Sampling error Non response error Data collection error Data analysis error SO…IMPORTANT TO MINIMISE OR AVOID IF POSSIBLE!

Market Research and Concepts - CUEGIS How does MR apply to the concepts?