Conducting research requires gathering two types of data. The first
PROBING is a tentative, exploratory, and advanced survey to obtain type involves existing or secondary data which originate from extensive and depth information on a subject or topic. studies that are previously conducted and are directly related to the Doing market research before pursuing any type of business is research topic. Sources of secondary data include books, journals, mandatory and as such, research comes in various forms and newspapers, websites, and market databases. methods. INDUSTRY ANALYSIS Importance of Probing the Market 1. Research helps in knowing the trends in the market. Getting secondary data regarding the industry is the first step in designing a marketing plan. A clear, sufficient, and current industry 2. Research helps dealing with competition better. 3. Research helps in making better decisions to come up with situationer provides important insights into the market dynamics. effective marketing programs for new or existing services. 1. THE INDUSTRY. It is important to identify first the sector in a particular industry to which the business belongs in order to gather data relevant to the study. MISCONCEPTIONS Obtaining the following data can give one good grasp of the RESEARCH IS REGARDED AS THE ‘UNPOPULAR’ PART OF A industry situation: MARKETING PLAN BECAUSE OF THE COMMON VIEW OR BELIEF A. Description of the sectors involved in the service industry. THAT IT IS TOO DIFFICULT AND COMPLICATED. B. Buying behavior and usage frequency of the service. the following are the common misconception about research: C. Trends D. Growth and decline figures. 1. Research is just an added cost. However, undertaking a research endeavor will almost always Conducting a STEP analysis also helps in exploring opportunities give high returns. in the market. STEP involves the ff. factors: 2. Research is only for big companies. Business owner needs to research to know which product or A. SOCIAL FACTORS. People, being social beings, are naturally service provides the best opportunity to achieve/earn profits. influenced by factors such as their respective reference 3. Research can only be performed by statisticians. groups and standing in society in terms of buying behavior. It depends on one’s understanding of research and what type When assessing the social factors, the following should be will be conducted. considered: I. Who provides the idea or interest in purchasing a certain THE RESEARCH BRIEF product/ service? The following are the basic contents of a research brief template: II. Who is a major influencer in buying decisions? 1. THE STATEMENT OF THE PROBLEM. This states or indicates the III. Who decides whether to buy or not? problem that the study aims to address. IV. Who uses the product or service? 2. HYPOTHESIS. A hypothesis is generally an educated guess. It is B. TECHNOLOGICAL FACTORS. It is important to be aware of an assertion which can be accepted or rejected, proved or the various technological advancement and innovations to disproved. stay ahead of the competition. 3. RESEARCH OBJECTIONS. The research objection should indicate C. ECONOMIC FACTORS. The state of a country’s economy what aims or goals the researcher wants to accomplish in the significantly impacts the buying behavior of the people. study. The following factors should be considered when assessing It is also important to keep in mind that objections should be economic factors: SMART. S – SPECIFIC I. Economic Growth M – MEASURABLE II. Interest Rates A – ATTAINABLE III. Taxation R – REALISTIC IV. Exchange Rates T—TIME-BOUND V. Inflation Rates VI. Disposable Income 4. SCOPE AND LIMITATIONS. This research aspect makes the results as specific and as useful as possible especially when the D. POLITICAL FACTORS. The government sometimes researcher in under time, budget, or manpower constrains. intervenes to regulate the conduct of the businesses. 5. METHODOLOGY. There are various approaches to conducting research studies. It can be qualitative or quantitative. 2. COMPETITIVE ANALYSIS. A better understanding of the 6. TIMETABLE. All studies should have a timetable to make sure competition helps business to stay ahead of its competitors. that every research part and pertinent topics are covered Thus it is important to properly identify the following: according to schedule. A. Direct and indirect competitors 7. BUDGET. Conducting a research sometimes entails substantial B. Competitors positioning amount of cost. However, this can be minimized as long as the C. Market share researcher is resourceful. D. Volume of business E. Direct marketing efforts SOURCES OF DATA 4. FOCUSED GROUP DISCUSSION (FGD). It is one of the most POSITIONING MAP commonly used research tools. It is effective in generating consumer insights, formulating a proper positioning strategy The positioning map or sometimes referred to as the perceptual and providing potential service improvements and ideas. map, is a graphical representation which links the industry analysis A. FGD RESPONDENTS. They should be screened properly in and competitive analysis to the service business. From there, it can order to have a productive discussion. be determined how the product or service can be effectively B. FGD VENUE. It can be a facilitator of either a good or bad positioned against its competition, or better still, can provide FDG. something that others are not offering yet. C. FACILITATING AN FGD. The most important component in A perceptual map is a two dimensional graph which plots out two an FGD is its facilitator, The more skilled at probing the attributes along the x and y axes with varying ranges. facilitator is, the more productive an FGD is. The guide contains the following: PRIMARY DATA I. Lifestyle of respondents After gathering all the available information, the researcher should II. Sources of information then tailor-fit the research to the service business pursued by III. Perceptions on the services offering gathering primary data or the data that can verify or support IV. Preference in service offerings whatever existing studies have been presented. In gathering primary V. Decision making research data, the qualitative or quantitative methods can be used. VI. Buying behavior D. FDG TECHNIQUES. QUALITATIVE RESEARCH Techniques that can be used to gain insights from the respondents: It is a method that is descriptive in nature and effective in gathering I. The DILO (day in the life of) information through the opinions, behaviors, and emotions of II. PROJECTION TECHNIQUES people towards a certain topic or issue. It can be an effective The sentence-completion technique. It gives method for gathering consumer insights. respondents the starting phrase of an Disadvantage in using the research method include: incomplete sentence, and they are instructed to end it in a way which is meaningful to them. - the subjective of the results which make it hard to standardize Word association/ Thematic apperception test - the researcher’s bias (TAT). Respondents are presented with a set of - longer time in interviewing a few respondents that casts doubt words or picture/s (of products, brands, etc.) and on the representativeness of the sample population are then asked to tell what comes to their mind - the extensive labor and expense of the research upon seeing them.
1. OBSERVATIONAL RESEARCH. It is probably the simplest of all QUANTITATIVE RESEARCH
the qualitative methods in the sense that it only involves the It is grounded by numbers and is objective in nature. This type of researcher observing the subject or respondents behavior in his/ her natural environment. research typically involves asking questions and ranking of choices using scales that are integrated in survey questionnaire. Two types of observational research: A. DIRECT OBSERVATION. It involves informing the subjects or respondents that they are participating in the research being conducted. B. UNOBTRUSIVE OBSERVATION. It involves people who are unaware that they are being observed. 2. IN DEPTH INTERVIEWS. These are the question and answer sessions that are conducted in one on one setting and administered to get information on the specific characteristics of an industry. 3. MYSRERY SHOPPER. Service business use this method by contracting or deploying certain individuals as evaluators and putting them in the position of ordinary customers. This is to evaluate the frontline staff and determine if they are providing the proper service level. The following are some common insights that can be gained from the mystery shopping method: A. How the store/ establishment should look like B. What ambiance can be created C. What additional services can be offered to address ‘bottlenecks’ D. How to improve the staff performance through evaluation.