1. 4.4 Market Research

2. 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

3. Central Question
Market Research:
Is it really Necessary?

4. 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

5. 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)

6. 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.

7. 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

8. So…Which Secondary Method is Best?

9. 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.

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

11. 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.

12. 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

13. So…Which Primary Method is Best?

14. 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

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

16. 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

17. 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?

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

19. Questionnaire design

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

26. 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).

27. 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)

28. 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’

29. 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?

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

31. 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?

32. 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

33. 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

34. 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?

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

36. 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?

37. 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?

38. 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?

39. 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?

40. Task – 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

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

42. 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

43. 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!

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