MANAGEMENT OF
MARKETING
METHODS OF MARKET
RESEARCH
LEARNING INTENTIONS/SUCCESS
CRITERIA
LEARNING INTENTIONS:
I understand the role of
market research in the
marketing activities of an
organisation.
SUCCESS CRITERIA:
 I can explain WHY
organisations would carry out
market research
 I can describe HOW
organisations can carry out
market research
 I can describe the different
types of market research that
organisations may use
 I can explain why
organisations may choose a
particular type of market
research
EXAMPLE OF POOR MARKET
RESEARCH
http://www.tes.co.uk/teachingresource/Market-research-and-brandingmistakes-6173838/
WHAT WENT WRONG …
Coca-Cola discovered it was losing out to rival Pepsi so it
introduced New Coke.
Unfortunately, millions of Americans decided they
hated New Coke and responded to the change in
formula as if the organisation had killed off a
beloved member of the family.
The lessons from Coke's mistake are avoid basing decisions on
biased research, stay close to customers and know what makes
you or your product special.
SO, LET’S SEE HOW MARKET RESEARCH SHOULD BE DONE!
DESK RESEARCH
Recap:
• What is it?
• Give some examples
• Any advantages?
• Any disadvantages?
DESK RESEARCH
•
•
•
Desk research involves finding and REUSING
EXISTING INFORMATION about a market for
your specific purpose.
This “reused” information from desk research is
known as SECONDARY INFORMATION.
This type of research therefore DOES NOT
INVOLVE DIRECT CONTACT WITH
CONSUMERS (as it can be done by sitting at a
desk).
INTERNAL DESK RESEARCH EXAMPLES
• These are sources of market research
information from INSIDE of the business.
• They often focus on information about the
business itself.
Examples include:
 SALES FIGURES
 PROFIT FIGURES
 PRODUCTION FIGURES
 STOCK LEVELS
EXTERNAL DESK RESEARCH EXAMPLES
• These are sources of market research
information from OUTSIDE of the business.
• They provide information about what people
outside of the business think about it and the
market in general.
Examples:
• GOVERNMENT OR INDUSTRY STATISTICS
AND REPORTS eg Census
• COMPETITORS’ BROCHURES AND
WEBSITES
• MAGAZINE AND NEWSPAPER ARTICLES
BENEFITS OF DESK RESEARCH
• Desk research is RELATIVELY CHEAP to collect as time and
money does not have to be spent collecting new information.
• Desk research provides market research information RELATIVELY
EASILY and QUICKLY as it is already available and so time does
not have to be spent collecting new information.
• The speed with which (especially internet based) desk research can
provide information means that it can provide access to a wide
range of both INTERNAL (information from inside of the business)
and EXTERNAL (information from outside of the business) market
research. This can help make sure that decisions are well thought
out by using a FULL picture of the market.
• It is valuable when quick decisions need to be made.
DRAWBACKS OF DESK RESEARCH
Desk research uses information that already exists and so:
• this information may only be able to provide BROAD rather than
specific market research information – this may not be very helpful
for decision making. For example desk research may show that
sales are falling – but not be able to explain why.
• this information may be less than useful because it has become
OUT OF DATE.
• you may not know if it is INACCURATE because you did not carry it
out.
• if nothing is available on a topic (eg a new market) then it will be
unable to provide any market research.
Task
Complete Worksheet 23 Desk Research
Task
FIELD RESEARCH
Recap:
• What is it?
• Give some examples
• Any advantages?
• Any disadvantages?
FIELD RESEARCH
• Field research involves gathering NEW
INFORMATION about a market for your
own specific purpose.
• The information that field research creates
is known as PRIMARY INFORMATION.
• This type of research therefore does
usually require DIRECT CONTACT WITH
CONSUMERS.
TYPES OF FIELD RESEARCH
PERSONAL INTERVIEW
Here the business uses a face-to-face discussion to ask consumers questions
about what they think about the business and its’ market.
This is good because:
• it allows a 2 way conversation about issues and so can clear up any
misunderstandings and get extra detail to answers.
• the information it provides will be of high quality.
The main drawbacks of this method are:
• consumers may not have the time to talk or be unhappy to do so - this can
mean it is hard to collect research this way.
• It also takes time for staff to do it which costs money for wages
METHODS OF FIELD RESEARCH
ONLINE SURVEY
Here the business uses an internet website to ask consumers questions
about what they think about the business and its’ market.
Consumers can be directed to this website from information on texts, emails, receipts
or the business website.
This is good because:
• it does not require a lot of staff time and wages because computers collect or analyse
the information.
• consumers may be more willing to provide information because it is quick and they
can answer at a time which suits them.
The main drawback of this method is that it is not a 2-way method of communication and
so it can be hard to clear up any misunderstandings or get extra detail.
METHODS OF FIELD RESEARCH
TELEPHONE SURVEY
Here people are contacted by telephone and asked to answer
questions.
This is good because:
• a large number of people from all over the country can be contacted
• it is less expensive to carry out than a personal interview
• misunderstandings can be cleared up as it is a 2-way
communication.
The drawbacks are that it is difficult to find a suitable time when people
are willing to answer questions by telephone and most people do not
want to participate in long surveys by telephone.
METHODS OF FIELD RESEARCH
POSTAL SURVEY
Here people are sent a questionnaire by post. They will then have to
complete the questionnaire and send it back to the business.
This is good because:
• people can complete the questionnaire at a time which suits them
• people can be targeted over a wide geographical area
The drawbacks of this are:
• people may just bin the questionnaire
• it takes time to have the questionnaires returned
• the questions may be read differently by different people and there
is no opportunity for clarification.
METHODS OF FIELD RESEARCH
HALL TEST
This involves a product being given to a selection of customers to try
and then getting their feedback on it.
This is good because the customers can report back on their actual
experience of using the product.
This is not so good because the customers will give their personal
opinion which can be hard to analyse, or they may just tell the business
what they think they want to hear so as not to appear rude.
METHODS OF FIELD RESEARCH
FOCUS GROUP
This involves putting together a group of selected customers and
asking them questions about a product or service to stimulate a
discussion.
This is good because:
• The feelings and views of the people in the group can be observed
• Any points of misunderstanding can be clarified
This is not so good because:
• It is time consuming and expensive to carry out
• The sample of people used in the group may not be representative
of all the potential customers.
METHODS OF FIELD RESEARCH
OBSERVATION
This involves watching customers and recording their actions eg how
many customers visit a business or what their reaction to a
situation is.
This is good because:
• Facts and figures are gathered which are easier to analyse than
people’s opinions.
• People are not aware they are being observed and are therefore
more likely to act naturally
This is not so good because:
• There are privacy and ethical issues to consider when observing
people
• The customers are not asked for reasons for their actions.
METHODS OF FIELD RESEARCH
EPOS [ELECTRONIC POINT OF SALE]
This involves gathering information when customers are paying for
purchases by debit or credit card at the checkout.
This is good because:
• Large quantities of information can be gathered
• The information is factual rather than customer’s opinions and so
can be easily analysed
This is not so good because:
• It is expensive to purchase an EPOS system, especially for a small
business
• No opportunity to gather customer opinions.
METHODS OF FIELD RESEARCH
SOCIAL NETWORKING SITE
This involves using sites such as Facebook and Twitter to gain
feedback from people on goods and services and their reaction and
opinion on different issues affecting the business.
This is good because:
• Large numbers of people can be reached
• Information can be gathered quickly
• It is a 2-way communication between the business and its
customers
This is not so good because:
• Customers may not want to join the social networking site of the
business
• Information put on the sites is not usually private and may be viewed
by anyone
METHODS OF FIELD RESEARCH
COMMENT CARDS
Here the business uses a card (which is usually available at tills,
service desks or at the point of service eg a hotel room or restaurant
table) to gather comments from consumers about the business and its’
market.
This is good because
• it does not require a lot of staff time and wages to collect the information.
• Consumers can also use it at any time so it allows a business to collect
ongoing research easily.
The main drawback of this method is that it is not a 2-way method of
communication and so it can be hard to clear up any
misunderstandings or get extra detail.
TASKS
Complete Worksheet 23 Field Research
Task and then do Worksheet 24.