Module 17
MARKET RESEARCH
WHY DO MARKET RESEARCH?
• Market research is commonly seen as
finding out if a product or service will be
successful
• But there is more to it than that
• Market research can have many different
purposes
RESEARCH PURPOSES
• To identify customer needs and then meet those
needs
• To learn about customer attitudes and values
• To help develop products and services that meet
identified needs.
• To discover sales trends
• To find out about competitors’ activities
• To measure the effectiveness of promotional
activity
• To classify customers into groups or types
HOW IS IT DONE?
• Unique research that uses surveys,
interviews and questionnaires to find out
about markets
• This is known as ‘primary’ research
• Using existing information such as internal
or external records and statistics to learn
more about markets
• This is called ‘secondary’ research
WHY USE DIFFERENT METHODS
• Each different method has its advantages
and disadvantages
• Each may only be appropriate in certain
circumstances
• Users need to work out if the method is
right for them according to its cost,
reliability, validity, accessibility and the
time it will take to gather
Market research
Market research is to do with collecting
information about consumers and the
characteristics of markets
It involves using surveys, polls, focus
groups and other methods to gather
information
Some examples of market
research
So, market research is about collecting
useful information in order to improve
organisations’ marketing activities.
Information can be obtained from at least
six different sources
Information sources
1. Literature search
Getting hold of all available material on a
particular theme. Material is gathered
from:
• Internal company information
• Relevant trade literature
• Newspapers
• Magazines
• Firms’ annual reports
Information sources
2. Talking to people
Useful in the early stages
Includes meetings with customers and
suppliers
It generates opinions and may be
unrepresentative of the whole population
Information sources
3. Focus groups
These are used to:
• Explore ideas and attitudes
• Test new approaches
• Generate a discussion
But they involve a small sample and may
not mirror the overall population
Information sources
4. Personal interviews
• Produce in depth information
• Are carried out face-to-face
• Can be very expensive
Usually involve the interviewer asking
questions from a written questionnaire or
from a list of topics
Information sources
5. Telephone surveys
• The fastest way of gathering information,
especially from large sample sizes
• A prepared script is used as with written
questionnaires, but a phone survey allows
opinions to be tested further
Information sources
6. Postal surveys
• Ideal for large sample sizes
• If sample covers wide area
• Generally cost less than telephone interviews
• But take longer to complete
• No interviewer, so less chance of personal bias
• Unable to probe for more detailed information
Activity to find out more about
• Selecting a sample to base research on
and
• The pros and cons of conducting a written
questionnaire