CHAPTER 11:

MARKET
RESEARCH
WHAT IS MEANT BY MARKET RESEARCH?

Process of gathering , analyzing and

interpreting information about a
market.
WHY IS MARKET RESEARCH NEEDED?
• By doing market research a business may find out what
consumers needs in a changing and competitive international
environment
• Market research is done to find out about:
Product
Price
Place
Promotion
Competition
TYPES OF INFORMATION GATHERED BY MARKET
RESEARCH.

Quantitative Qualitative
information information
The answers about The answers where
the quantity of opinions and
something judgements is
Examples: how necessary
many sports shoes examples: what do
were sold? consumers like about
the product?

Both of these information's are gathered by Primary research and

Secondary research
 PRIMARY RESEARCH

IT IS THE COLLECTION OF DATA THROUGH DIRECT CONTACT BY

CUSTOMERS.IT IS ALSO CALLED AS FIELD RESEARCH
Several ways of primary research are:
i. Questionnaires
ii. Interviews
iii. Focus groups
iv. Observation
PROCESS OF PRIMARY RESEARCH
What is the purpose of market
research?

Decide the most suitable method of market

research.
Decide on the size of sample needed and who is going
to be asked?

Carry out the research

Collect and combine the data and analyse

the results

Produce a report on the data collected

 METHODS OF PRIMARY RESEARCH
1. QUESTIONNAIRES
It may be conducted face to face on
streets or by telephone , post or internet

DISADVANTAGES
ADVANTAGES
× If questions are not framed
 Detailed qualitative
properly, answers may be
information
inaccurate
 Can be carried out online so it
× Carrying out questionnaires on
is cheap and easy
street and phone may cost a lot
 They can be linked to prize,
of money and time
draws or other incentives to
× Collecting, analysing and
encourage people to fill the
presenting the data is time
questionnaire
consuming
 2.INTERVIEWS
In this method the interviewer will
have ready prepared questions for
the interviewee

ADVANTAGES
DISADVANTAGES
 Can explain any question if
× Results may be inaccurate
misunderstood × Very time consuming and
 Detailed information can be
expensive
gathered
 HOW TO DECIDE WHO WILL FILL QUESTIONNAIRES AND INTERVIEWS ?

SAMPLES RANDOM SAMPLING

It is the group of It is when people
people who are are selected
selected to randomly to
respond to the respond to the
market research market research

QUOTA SAMPLE
When people are
selected on the basis of
characteristics (age,
gender or income) to
respond to the market
research
 3.FOCUS GROUPS
It is where groups of people agree to
provide information about a specific product
or general spending patterns over a period
of time

ADVANTAGES DISADVANTAGES
 Detailed information can be × Time consuming ,expensive and
generated biased
 4. OBSERVATION
May be in the form of

•Recording: e.g. meters can be fitted to a monitor or website to see

what people are watching.
•Watching: e.g. see how many people go into a shop and actually buy
something.
•Audits: e.g. counting inventory to see what has sold well. (inspecting)

DISADVANTAGES
ADVANTAGES
× Only provide basic figures and
 Not very expensive
not reasons why people do things
ADVANATGES AND DISADVANTAGES OF
PRIMARY RESEARCH
• ADVANTAGES
 UP TO DATE INFORMATION
 COLLECTED FOR A SPECIFIC PURPOSE SO RELEVANT DATA IS GATHERED
 CONFIDENTIAL
• DISADVANTAGES
× COSTLY AND TIME CONSUMING
× DOUBTS ABOUT ACCURACY DUE TO SAMPLING
 SECONDARY RESEARCH
SECONDARY RESEARCH IS THE INFORMATION THAT HAS ALREADY BEEN
COLLECTED AND IS AVAILABLE FOR USE BY OTHERS. IT IS ALSO CALLED
AS DESK RESEARCH

INTERNAL RESEARCH EXTERNAL RESEARCH

INFORMATION IS READILY AND INFORMATION IS OBTAINED
CHEAPLY AVAILABLE FROM THE FROM OUTSIDE THE COMPANY
FIRMS OWN RECORDS

SOURCES OF EXTERNAL
INTERNAL SOURCES OF
RESEARCH
INFORMATION
• GOVERNMENT STATISTICS
• SALES
• NEWSPAPERS
RECORDS/REPORTS
• TRADE ASSOCIATIONS
• CUSTOMER RECORD
• MARKET RESEARCH
• FINANCE DEPARTMENT
AGENCIES
• CUSTOMER SERVICE
• INTERNET
DEPARTMENT
 ADVANTAGES AND DISADVANTAGES
OF SECONDARY RESEARCH
• ADVANTAGES
 CHEAPLY OBTAINED
 LESS TIME CONSUMING
 ALLOWS COMPARISON OF DATA
• DISADVANTAGES
× MAY NOT BE UPDATED
× INFORMATION COLLECTED HERE MAY BE OR OTHER PURPOSE
× DATA COLLECTION METHOD AND ACCURACY MAY BE UNKNOWN
WHO CARRIES OUT MARKET RESEARCH?

• THE BUSINESS ITSELF

• THE MARKET RESEARCH AGENCIES
 RELIABILITY OR ACCURACY OF
MARKET RESEARCH DATA
• CAREFUL SELECTION OF SAMPLE,ITS SIZE AND TYPE
• WELL PHRASED QUESTIONS IN THE QUESTIONNAIRE
• WHO CARRIED OUT THE RESEARCH?
• BIAS INFO
• AGE OF THE INFORMATION
 HOW TO DESIGN AND USE A
QUESTIONNAIRE?
AIM OF THE RESEARCHER MUST BE CLEAR
WRITING THE QUESTIONS
 NOT MORE THAN 12 QUESTIONS
 SHORT AND CLEAR QUESTIONS
 TO KNOW THE AGE , GIVE A CHOICE OF AGE GROUPS EXAMPLE- 20-30 OR 30-40
 AVOID OPEN ENDED QUESTIONS
 ORDER OF THE QUESTIONS
CARRYING OUT THE QUESTIONNAIRE
 HOW MANY PEOPLE ARE GOING TO BE ASKED
 AT WHAT TIME?
 WHERE IS QUESTIONNAIRE GOING TO BE ASKED?
 PRESENTATION OF MARKET
RESEARCH DATA
• A TABLE OR TALLY CHART
• A DIAGRAM
• A CHART- PIE CHART, BAR CHART
• A GRAPH – A LINE GRAPH
BUSINESSES MAY BE PRODUCT OR
MARKET ORIENTED
• PRODUCT ORIENTED
A BUSINESS WHOSE MAIN FOCUS IS ONLY ON THE PRODUCT ITSELF
• MARKET ORIENTED
A BUSINESS WHICH CARRIES OUT MARKET RESEARCH TO KNOW ABOUT
CONSUMERS NEEDS AND ANTS TO DEVELOP THE PRODUCT
 REVISION WEEK

• Learn chapter 12 and 13 for flip class

next week