1. Handout 14: Market research
PowerPoint presentation
Unit 320 (B&A 59): Principles of business
Handout 14: Market research

2. Market research
The formal gathering of information about what an organisation’s target customer base wants.
Used to gather statistics/opinions in order:
to find out what the target market wants
to inform organisational strategy
to inform new product/service development
to understand how best to market a product/service.

3. Types of market research
Primary
Quantitative
Qualitative
Secondary
Primary – this is first-hand research, where you collect opinion and gather statistics from your subject individuals.
Quantitative is based on numbers which can then be analysed, eg rating a service from 1 – 5.
Qualitative is based on opinions that give a general feeling about something.
Best results are often obtained with a mixture of quantitative and qualitative research.
Secondary – sometimes called desk research and is compiled often by looking at primary research carried out by others.

4. Primary research
Advantages
Can be targeted specifically to what you need to know
Can be designed to gather both quantitative and qualitative data
Researcher is in control of how much data is collected
Disadvantages
Cost
Time-consuming
Requires careful planning in order to be useful

5. Secondary research
Advantages
Easy to carry out
Less time-consuming
Cost-effective
Disadvantages
Not specific to need
Questionable if sources are not properly scrutinised

6. Methods of carrying out primary market research
Face-to-face interviews, eg in the street, door to door
Telephone interviews
Postal questionnaires
Omnibus surveys
Omnibus surveys collect quantitative data across a wide variety of subjects during the same survey on behalf of multiple clients, and provide a cost-effective method.

7. Types of sampling Occasional Random Stratified Quota
Occasional – individuals present at an occasion, eg a conference.
Random – individuals chosen at random.
Stratified – within a category of the population, eg females aged
Quota – quantified number within a category, eg 500 employed females and 500 unemployed females, aged

8. Types of information gathered
Information on:
Market trends
Product – existing and potential for development
Pricing – competitors’ and customers’ expectations
Promotion – effectiveness and strategies
Distribution – effectiveness of different methods

9. Characteristics of market research
Has a purpose
Systematic and planned
Objectives stated in a clear, concise, attainable, measurable and quantifiable way
Has a time frame
Has a resource allocation, including a budget and facilities
Is objective
Uses both qualitative and quantitative data
Should be a continuous process
Collects, records and analyses information
Provides solutions for marketing problem