Market Research Introduction

What is market research?

Lesson’s Objectives To have an awareness of different types pf market research To understand the difference between Quantitative and qualitative analysis

Purpose of market research

Diamond rank cards Using the key purpose of Market research Decide which is the most to least important ‘purpose’ of market research

Diamond rank cards Using the key purpose of Market research Decide which is the most to least important ‘purpose’ of market research What was your most important factor? What was your LEAST important factor?

Your go….. Our own market research activity….

Your task Over the next few slides you will see a range of different anti smoking adverts. Some are from packaging and some are from billboards or magazines. YOUR TASK – is to rate each advert on a scale of 1 to makes no impact extremely effective More effective advert….

Class Market Research activity Scale of Advert 1 Advert 2 Advert 3 Advert 4 Advert 5 Advert 6 Advert 7 Advert 8 Advert 9 Advert 10 1  3  5 1 = makes no impact 5 = extremely effective Which is the MOST effective advert in your opinion Which is the LEAST effective advert in your opinion.

Advert ~1

Advert ~2

Advert ~3

Advert ~4

Advert ~5

Advert ~6

Advert ~7

Advert ~8

Advert ~9

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Whole group view point Scale of 1 - 5Most effectiveLeast effective Advert 1 Advert 2 Advert 3 Advert 4 Advert 5 Advert 6 Advert 7 Advert 8 Advert 9 Advert 10

What if…..? This market research is paid for by a tobacco company and they are going to use the results to only use the least effective warnings on the packets…?

Ethics in Market research. Tobacco companies probably wouldn’t have any qualms at all about doing this but the ethical issues for the market research company are certainly worth discussing. Should the participants have been told prior to the research? Is it any different to an advertising company designing adverts? How many of you want to work in marketing? How many of you would be prepared to work for a tobacco company?

The theory of Market Research

Types of Research Market research is the collection of information or data to better understand what is happening in the market place. A firm's marketing department needs to know about economic trends, as well as consumers' views. Based on this information, they can put together a marketing plan, which will meet their own needs as well as those of their consumers.data There are two general types of research: Primary or field research Secondary or desk research

Primary or Field Research Obtaining new data for a specific purpose. The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered by face-to-face interviews, by telephone or by post, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded. Field research has the advantage that the firm itself has control over the whole process. The disadvantages are that it takes longer, and costs more Field research

Secondary or Desk research This is the use of existing data that has already been collected. It can be anything from a company's own sales statistics to Department of Trade and Industry reports. Other secondary sources of information include journals, company reports, government statistics, and surveys published by research organisations. Traditionally, these have been paper-based, but more and more information is now available on CD-ROM or on-line through the Internet. Desk research has the advantages of being cheaper and quicker than field research. The disadvantages are not knowing if the findings are accurate, or how relevant they will be to your product. Desk research

You decide: Which is desk and field research? Accounts Consumer panels Experiments Government statistics Group interviews High street surveys Internet results Loyalty cards Market research publications Observations On line surveys Sales record Field = Primary Desk = Secondary Use your whiteboard Write PRIMARY on one side And SECONDARY on the other… Now create a list in your notes sorting these out into Primary & Secondary

The results Primary Consumer panels Experiments Group interviews High street surveys Observations On line surveys Secondary Accounts Government statistics Internet results Loyalty cards Market research publications Sales record

Quantitative research Statistical basis Gathers numerically measurable data Sampling plays a key role Data obtained through surveys Concerned with obtaining hard data Age? Gender? Income bracket? How often do you shop at X?

Government statistics…

More Government statistics

UpMyStreet.com

How do you feel when you eat Haagen Dazs? Qualitative research Subjective and personal Gathers “soft” data Main purpose is to understand consumer behaviour, attitudes and perceptions Obtained by methods designed to get detailed responses Research topics usually explored in some depth Psychological opinions

What type of Market research? Your smoking activity earlier…. What type of research was it? Primary or Secondary research? Quantitative or Qualitative research?

Watch the DVD Best of working Lunch Clip 7 Researching the Market…

Key concepts include… Consumer panel What is it? How does it operate? What are the limitations of a consumer panel? What is the difference between qualitative and quantitative? Which is better? How has ICT improved MR?

What’s the best way to research consumer views on LEGO? Zero Coke? Dulux Paint? X Factor? Ryan Air service Heathrow to Belfast? Capital Radio? Would you use primary or secondary research? Suggest 3 Qualitative Q’s & 3 Quantitative Q’s you’d use?

What’s the connections? Failed market research

Issues with Market Research and start up businesses? Can a start up business afford market research? Can you afford not to do any research? What are the consequences of not doing market research? What type of market research would a start up business use?

Homework Revise for assessment for next lesson – Monday You will need to revise EVERYTHING covered so far…. Business Ideas (value added, legal protection) Legal structure Limited & unlimited liability Stakeholders Business Plans Market research (today’s work!)

Plenary What is the difference between desk & field research? Give me an example of a qualitative market research question? Give me an example of a quantitative market research question?