1. Market Research
Unit 3 P3

2. Marketing orientation
In order for a company to adopt a marketing orientation it is vital that they obtain knowledge about their customers and other aspects of the marketing environment that affect company operations.

3. Marketing Information System
A marketing information system has been defined as:
“A system in which marketing information is formally gathered, stored analysed and distributed to managers in accord with their informational needs.”

4. Marketing Research
Marketing research is concerned with gathering information about marketing and the reaction of these to various product, price, promotion and distribution (place) decisions.

5. Primary and Secondary Research
Organisations should undertake Secondary research first because this is research already available and in consequently cheaper and quicker to obtain than primary research.
Secondary research makes use of research already carried out by somebody else for another marketing project.
Both types of research can be internal and external
Primary research is usually carried out to answer questions that are beyond the scope of the secondary research currently available. For example, an organisation wishing to gauge reaction to a new advertising idea is unlikely to find the answer in research already carried out.

6. Uses and Limitations
Secondary research sources, in particular, are widely used as they tend to be widelyavailible.
There are however some problems:
The information may be out of date
The information may not be detailed enough to suit your purpose
The information may be inaccurate
The method used to collect the information may not be reliable
However Secondary research can be useful as a way of gaining information regarding market size, segments and trends.

7. Primary Research
Primary research is when the company aims to discover new information about the market.
This method will involve the company using a number of methods of research in order to gain quantitative and qualitative information about the market.
Primary research will be carried out to answer questions that secondary research has not answered.

8. Fitness of Purpose
Each marketing research method has strengths and limitations.
Each method will be able to collect different types of data.
If a company wished to collect qualitative data, face to face interviews and focus groups would prove to be excellent methods. However these methods are not fit for the purpose of collecting quantitative data.
Quantitative data would usually be collected using methods such as consumer panels or surveys
It is vitally important that a business understands which methods of market research they should be using in order to collect the data they require.
If a company uses the wrong method of research it could end up costing a large amount of money with no useful results to show for it!

9. Type of Sampling
A sample is a small number of the population who will be used for market research.
These small groups will be used to gain an insight into the whole population.
There are 2 ways of selecting people to take part in market research. These are Probability and non-probability sampling.
There are 5 probability sampling techniques: Random sampling, systematic sampling, stratified sampling, cluster sampling and multi-stage sampling.
Commonly used non-probability methods include: Convenience sampling, judgment sampling and quota sampling.

10. Accuracy
Errors can occur in the sampling process that affect the overall results of the research:
A low response rate may mean that the final sample is unrepresentative of the whole population
Respondents might give answers that they feel will please the researcher.
The interviewer may influence the answer, record the answer incorrectly or falsify the response
Respondents usually feel they should give a socially acceptable answer to sensitive or potentially embarrassing questions.

11. Electronic Data Collection
Organisations which ask web surfers to register to browse a website or which collect information during a purchase can gather very detailed information.
This information can be used to create databases that can be used for a number of purposes:
Identifying an organisations best customers
Sending direct mail letters and newsletters
Cross-selling related and complementary products
Providing a personalised customer service

12. Analysing Data
Companies will use the massive amounts of data they hold to discover information about customer behaviour.
This is known as data mining. Companies will look through their collected data with the objective of discovering hidden relationships or patterns which provide an insight into their customers

13. E-Marketing Websites can reveal plenty of useful information.
If a customer buys something this can often be used to suggest similar products that they may wish to buy.
Loyalty cards can gather a vast amount if information about the consumers also.

14. Focus Groups
Focus groups involve unstructured discussions between a group leader and a group of consumers.
The group leader will have a list of areas to cover with a topic but allows the group considerable freedom to discuss the issues important to them.

15. Focus Groups Weaknesses -
Interpretation of the results is highly subjective.
The quality will depend on the skill of the group leader.
Results may become biased by the presence of people who simply like to take part in focus groups.

16. Focus Groups Advantages –
A good deal of information can be found out about the consumer.
You can focus questionnaires on what is important to the consumer.
Finding can provide information into consumer motivations and behaviour.

17. Surveys Use questionnaires to collect data by face to face interviews
Postal questionnaire, , internet or telephone.
Discover information about attitudes and lifestyle

18. They can be used to gather info on your own company as well as competitors.
You will need to ask a lot of people before any useful information can be found.

19. Secondary Research
Secondary research is the process of using information that has already been gathered by another group.
This information can usually be used to find information about the levels of sales within a market, or information about a competitor.

20. Importance of Secondary Research
May answer some of the organisations research needs quickly and cheaply.
Could assist in the design of primary research project.
Will enable researchers to interpret primary research data better as it will have provided background information.
May provide data that cannot be gained any other way, such as government spending.

21. Types of Secondary Research
News Reports
Trade Journals
Government statistics
Market Analyses

22. Qualitative Research
Qualitative research is concerned with gathering information of peoples opinions about certain aspects of your company or the market.

23. Quantitative Research
Quantitative Data Collection
Research Design
Types
Descriptive research – Descriptions of consumers' awareness, beliefs attitudes, preferences, behaviours etc
Experimental research – Setting up control procedure to measure cause and effect (e.g. The effect on sales of a promotional offer)
The Sampling Process – Population definition.
Sampling Frame.
Sampling method. Sampling size
The Survey Method – Face to face interviews.
Telephone interviews
Mail surveys
Internet surveys
Questionnaire design – Planning Design. Piloting.