1. Simple Method to Conduct Market Research Lesson 1 – Objective and Data Collection

2. Group Discussion – Lunar New Year Fair Stall
Your teacher encouraged you to bid a fair stall for running in the coming Lunar New Year.
You are interested in doing so but you have no idea on what to sell and how to sell.
Assuming you have successfully bid a fair stall this year, discuss in a group of five what you would like to sell and why?
Note: After discussion, teacher can invite students to report what they have discussed and ask them how they know their products would have good sale. Then introduce ‘market research’ to be explained in the following slides.

3. A Market Research is Necessary
In order to start with a business, you must know what you are going to sell and how to sell it/them.
A market research can help.
Market Research is ‘the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services’ (American Marketing Association)
Once that research is completed, it can be used to determine how to market your product.

4. Typical Market Research Process
1. Identify the problem and define the objective
2. Data collection methods
3. Select research approach
4. Design research instruments and techniques
5. Decide sample plan
6. Decide contact methods, places and times
7. Execute research programme
8. Analyze data collected
9. Prepare research report

5. 1. Identify the Problem and Define the Objective
The first step in a market research process is to identify the problem clearly.
Then, define the objective of the research clearly so the researcher can decide what information is required to obtain and how it can be obtained.
Teacher invites students to raise their ideas.

6. Activity 1
What are the ‘problems’ you should consider in planning your Lunar New Year fair stall project?

7. Activity
Whom to sell? Who are our target customers? How to identify the target group?
What to sell? Wet foods, dry foods, fast foods or thematics ?
Where to sell? Victoria Park or Fa Hui Park?

8. Identify the Target Customers
‘Market segmentation’ is the division of the market or population into subgroups with similar features .
It is useful to identify the target customers by segmenting on geographic differences, behaviour differences, demographic differences, psychographic differences and gender differences.
For example:
Geographic segmentation is grouping customers according to their nations, regions, countries or cities.
Psychographic segmentation is grouping customers according to variables such as social class, lifestyle, or personality.

9. Define Market Research Objectives
To understand what product customers would buy. E.g. dry goods like plush, toys etc.
To see what price could be accepted by customers.
To reveal competitors’ reaction.
To design product packaging.
To see if customers will like the product or not. E.g. the market trend
To find an appropriate place to sell the product. E.g. in Victoria Park or Fa Hui Park etc.
Teacher may let each group decide what kind of goods they want to sell and ask them to give examples of their objectives.

10. 2. Data Collection Methods
After identifying the research objectives, it is necessary to collect data that fits the objectives.
From the data collected, one can know the prices of different commodities in the market, as well as the supply and demand situation.
Market information can be divided into ‘primary data’ and ‘secondary data’.

11. Primary Data
Primary data is information that is obtained directly by the researcher from first-hand sources.
It is important as it is specifically collected to analyse the situation that the researcher studies.
E.g. would customers buy the good if the price is $50?
Any ideas of how to collect primary data?

12. Major Types of Methods of Collecting Primary Data
Observational research e.g. focus group
Quantitative research e.g. questionnaire
Qualitative research e.g. interview
(face-to-face, telephone etc.)
Experiments e.g. taste tests
For example, you want to know young people's expectation on price of a plush. You interview some of your classmates or friends. The data collected is primary data.

13. Secondary Data
Secondary data is information that is obtained from previously published materials, such as internet, magazines, newspapers, government census publications etc.
It can help the researcher to know the customer behaviours and the market trend.
For example, you want to know young people's expectation on price of a plush. You search relevant discussions on the internet and use the data for analysis. These discussions are secondary data.

14. 3. Select Appropriate Research Approach
A market research approach is a strategy applied by companies to provide answers and information associated with the objective of the market research.
When conducting a research it is necessary to determine which approach is being adopted because an appropriate research can help a company to satisfy customers’ needs and survive in a competitive market.

15. Examples of Appropriate Research Approaches
Observation (e.g. observe the behaviour of customers in a shopping mall)
To understand the customer’s buying behaviour.
Appropriate when you can estimate how many and what kind of people will come to the Lunar New Year fair.
Interview (e.g. face-to-face interviews with your friends/classmates)
To obtain in-depth, qualitative information such as their preferences.
Appropriate when you want to collect a descriptive view of how customers consider buying or not buying the product.
Questionnaire
To provide statistical, quantitative analysis.
Appropriate when your want to obtain feedback from a large number of participants, for exploration of patterns and trends etc.

16. The End

17. Simple Method to Conduct Market Research Lesson 2 – Research Design

18. Typical Market Research Process
1. Identify the problem and define the objective
2. Data collection methods
3. Select research approach
4. Design research instruments and techniques
5. Decide sample plan
6. Decide contact methods, places and times
7. Execute research programme
8. Analyze data collected
9. Prepare research report
Teacher starts the lesson by recapping steps 1 to 3 of a typical market research process.

19. 4. Design Research Instruments and Techniques
After selecting the appropriate research approach, marketers should design the research questions and choose the method(s) of reaching target respondents.

20. Questionnaire Survey as a Common Research Approach
Survey questions can be classified into three forms:
closed,
open-ended, and
open response-option questions.

21. Closed Questions
A format that limits respondents with a list of choices provided. Common forms of questions are Yes or No, Ranking, Multiple Choices and Rating with a scale of 1-10.
Advantages:
Easy for respondents to answer.
Responses can be easily classified or processed, making
analysis very straightforward.
Disadvantages:
Divergent responses are not entertained.
The respondents may not have considered the answers provided in multiple choices question before.

22. Open-ended Questions
Respondents are asked to give a reply to a question with their own words. No answers are suggested.
Example: What do you feel about your shopping experience in Lunar New Year fair?
Advantages:
Respondents have great freedom to answer, with no influence by any specific alternatives suggested by the researcher.
Researcher can explore fully all the factors that underpin respondents’ answers such as reasons, feelings, opinions and beliefs.
Disadvantages:
Data analysis is very time consuming.

23. Open Response-option Questions
A form of question which is both open-ended and specific response- options as well.
Example: What are your major concerns when buying a small gift in the Lunar New Year fair? (Answer: A: quality, B: price, C: size, D: weight, E: others (please specify):________)
Advantage:
Researcher can avoid the potential problems of both closed and open-end questions.
Disadvantage:
Researcher is required to have a good prior knowledge of the subject in order to generate realistic/likely response options. Otherwise, it would still be very time consuming to process the diverse responses collected in open-ended part.

24. Activity 1 – Group Discussion
Assuming the research objective of your Lunar New Year fair stall project is “to see what kind of toys to be sold and what price to be set?”
Back to the group formed in lesson, design a questionnaire that can help you to collect relevant information.
Students are free to design their questionnaire. Teacher however, has to remind them to consider 'the things they really need to know from respondents in order to meet the survey's objectives?'

25. Activity 1 Sample questions:
Will you buy a plush or toys in the Lunar New Year fair? (Answers: Yes/No)
How much will you spend in the Lunar New Year fair? (Answers: A: HK$0- HK$100. B: HK$100-HK$200. C: HK$200-HK$500. D: HK$500 or more.)
Do you agree it is good to buy toys as a gift for Lunar New Year? (Answers: 1. Strongly disagree. 2. Disagree. 3. Neutral. 4. Agree. 5. Strongly agree.)
What do you feel if you receive a lovely plush as a gift for Lunar New Year? (Open-ended)
Which cartoon character you like most? (A: Disney. B: Doraemon. C: Senrio. D: Others (please specify): __________)
Teacher may share with students the sample questions to stimulate their design.
When asking about students’ favourite cartoon character, teacher should remind students not to sell products infringing property right.

26. Activity 1 A well-designed questionnaire should:
meet the research objectives.
obtain the most complete and accurate information as possible.
make it easy for respondents to give the necessary information and for the interviewer to record and analyze the answer.
Teacher discusses with students why they use the format of e.g. closed or open-end questions. How these can help them make a conclusion.
Teacher then refers students to the criteria for a well-designed questionnaire as mentioned in this slide.

27. 5. Design Sample Plan
Sample is a set of data collected and/or selected from a statistical population (all target respondents).
Population
Teacher explains the need to select a sample from a population because it is not possible to obtain all responses from all respondents.
The concept of a sample thus includes the process of how the data are obtained (e.g., selected or random variables).
Sample

28. Population and Sample Example:
Population of the Lunar New Year fair project: Young people and parents.
Sample size of the Lunar New Year fair project: 100 persons.
Sample selection method: fellow schoolmates.

29. 6. Survey Contact Methods
Common survey/research methods are:
personal interviews
group or focus interviews
mailed questionnaires
telephone interviews.
Which one you find is appropriate for you to conduct a survey?

30. After-class Group Exercise
Conduct a research based on the questions you have discussed in class and collect the data back for analysis in the next lesson.

31. The End

32. Simple Method to Conduct Market Research Lesson 3 - Execution and Presentation

33. Typical Market Research Process
1. Identify the problem and define the objective
2. Data collection methods
3. Select research approach
4. Design research instruments and techniques
5. Decide sample plan
6. Decide contact methods, places and times
7. Execute research programme
8. Analyze data collected
9. Prepare research report

34. 7. Execute the Research Programme
Before obtaining the primary data, it is better to check existing secondary sources in order to become familiar with the basic characteristics of the market.
Some required information may have been collected before.

35. Collecting Primary Data
Direct Personal observation:
Collect information by recording actions without interacting or communicating with the participant.
The purpose of observation is to see the actions of the participants.
Questionnaire
A good questionnaire design is important because it will affect the validity and reliability of the responses and data analysis. Therefore, the questions should be:
short and clear;
few in number;
simple and intelligible;
simple alternative, multiple-choice or open-end type.
Observations usually result in greater accuracy and objectivity.
However, using observations to gather data normally requires more time and expenses than conducting surveys.
Observations must be carefully planned in order to avoid interfering participants’ actions. (If people know they are being watched, they may react differently.)

36. Collecting Primary Data
Interview
Researcher prepares a short list of questions relating to the enquiry and interview the target customers.
The survey should be organised in a way that is easy to complete.
Directions should be given so the respondent knows what to do.
Respondent should be assured that the answers will be handled confidentially.

37. Ensuring that Essential Data are Collected
No matter which method is used, make sure sufficient and essential data are collected for further analysis.

38. 8. Analyse Data Collected
A researcher will also have to decide what method of analysis will be used to make sense of the data.
Most common methods of analysis include the use of mathematical calculations such as:
Total (e.g. how many people like Disney character plush.)
Average (e.g. the average spending of each customer in the Lunar New Year fair.)
Median (e.g. the middle number of spending of each customer in the Lunar New Year fair.)
Mode (e.g. the most often spending range of each customer in the Lunar New Year fair.)
Percentage distribution (e.g. the percentage distribution amongst the preference of different cartoon characters toys.)

39. Activity 1
Try to analyse the data you have collected by use of the following techniques:
Total
Average
Median
Mode
Percentage distribution

40. 9. Prepare Research Report
The final stage of the market research process is to prepare the research report.
The research report should clearly state the research problem and outline research objectives. It must also describe how research was conducted, specifying who was asked and how, as well as the methods used to analyse the data.
The report should also present and evaluate the main findings of the research and includes conclusion and recommendations.

41. Summarising the Research Findings
Visualise the data
Try infographics: use table or charts for the presentation.
Keep it simple, avoid jargon

42. Recommendations Recommendations should be actionable and practical.
Don’t just say we need to do more. Tell what to do more and how to do!
The recommendations should help to make decision and provide answers for example:
What kind of goods to be sold in the Lunar New Year fair?
How much should we price our goods?

43. Activity 2
Make recommendations from your research findings and present it to your classmates.
Teacher simply ask students to do simple presentation as there is insufficient time for them to show graphs etc. For example, students are only required to mention what to do and how to do after their analysis.

44. The End