4, Market Research

MarketResearchAidingthesegmentationprocessMarketResearchObjectivesTodefinetheconceptofmarketresearchTodiscussitsimportanceTodiscussthestepsoftheprocessTodiscusswhentousewhichformTodescribethestepsindevelopingamarketresearchplanToexplainprimarydatacollectionmethodsTocompareandcontrastdifferentmethodsTodiscussdifferentcollectioninstruments.WhatisMarketResearchMarketResearch(MR)istheprocessofgatheringdatafromtheexternalenvironmenttoaidmanagersinmakingbetterdecisions.Thisresearchgathersinformationthatthecompanydoesnothave–andmaybeinformationthatothercompaniesdonothave.WhatisMarketResearchLargefirmsoftenhavewholedepartmentsgivenovertomarketresearchSmallerfirmsoftendonothavetheresourcestofundMR.MRisimportantinexploitingnewmarkets–especiallyoverseasones.TherearecaseswhereinsufficientmarketresearchhaveresultedinlosesforacompanyApplicationsforMarketResearchMarketresearchcanbeputtouseby:ImprovingqualityofdecisionmakingExample:findingoutwhattypeofstimuluscustomersaremostsensitiveto,price,coupons,productcustomisationDeterminingissueswithinthemarketingmixExample:discoveringthatthepackagingoftheproductdoesnotappealtoatargetsegmentKeepingpacewithchangingdemandsinkeycustomergroups(orwithinthemarketplaceitself):Example:alteringtheproductservicemixofairlinestoallowfirstclasspassengerstosleepundistributedthroughaflightMeasuringsatisfactionandaddedvalueExample:usingaresearchprogrammetodetermineifaparticularproductfeatureisworththeextracostsofincludingit.Forinstance,a7bladelenselementora9bladelenselementCommunicationTobeeffective,marketresearchersmustknowwhatinformationthemanagersneed.Managersneedtomakesurethattheirrequirementsareclearlystated.EthicsandResearchBecauseinformationisbeinggathered,acodeofethicshastobeobeyedManagersareresponsibleformakingdecisionsobjectively,takingalltherelevantinformationintoaccount,ratherthanselectingtheinformationtheywanttohere.Example,Mr.Bushandcloning.Onealsohastoconsiderifthewaytheyaregettinginformationismorallysound.Whatifyouarearesearchfirmandyoutellyourcustomerthattheirideaisabadone?EthicsandMoralityThesearesimilarbutdistinctivethingsAnethicalpersonknowsthatsomethingiswrongAmoralpersondonottheunethicalthingResearchandScienceMarketingresearchshouldbelookedatinascientificway.Haveanobjective(ahypothesis)andworkinanorderlymannertoreachit.ResearchisofnovalueifyouhavenodirectionTheProcessofResearchTheeasiestwaytoremembermarketresearchistothinkofitasafivestepsequential(oneaftertheother)process1.Definetheproblem2.Analysethesituation(contextualanalysis)3.Gatherdata4.Interpretthedatayouhavegathered5.SolvetheproblemDefiningtheProblemThisisthemostimportantstageoftheresearchasitwillsetthedirectionoftheentireproject.Researchingthewrongquestionscoststimeandmoney.Likeplanning,moretimespentherewilldecreaseproblemsyoufacelateron.Theprocessrequiresaresearchproblem–determiningwhatinformationisneeded,andaresearchobjective–whatyouintendtogetoutoftheresearchprocessMajordifficultiesariseasitiseasytofindsymptoms,buthardtodefinecause.Becausecompaniescannotaffordtoresearchforlongperiods,focusedobjectivesarebetter.Exampleproblemdefinition:“Shouldwechangethemarketingmix,andifsohow?”Thiscanbecombinedwithanexternalanalysistoproduceopportunities.Forinstance,theagingpopulationpresentsopportunitiesforcare-givingbusinesses,questionsmayariseastowhattheseneedsareandhowtheycanbeaccommodated.AnalysingtheSituationDoingthiscanhelpyoudecideuponwhatsortofinformationyouneed.Thisiswhenyoutalktoinformedpeople.Sometimesthesepeoplecangiveyousomegoodadvice.Thisisimportantforresearchcompanieswhosecustomer’srequirementsareveryspecific.AnalysingtheSituationThiswillalsoidentifyusefulsecondarydatafortheresearchSecondarydataisdatathathasalreadybeencollectedforanotherpurpose.Sometimesthisinformationcanbeuseful.Secondarydatacancomefrommanyplaces,companyrecords,annualreports,libraries,governmentoffices,theInternetandsoon.SecondarydataisgoodbecauseitischeapandeasilyobtainedAnalysingtheSituationIsoftenmuchcheaperthanthefullresearchdatagatheringprocessGivesrisetoaresearchproposal–whichtellsyouwhatsortofinformationisneededandhowtogetit.Whataresomeoftheproblemsofsecondarydata?GatheringDataThisformofdataisprimarydata.Thatis,datathatisgatheredspecificallyforthispurpose.Thewayinwhichyougatherdatawilldependonwhattypeofproblemyouarefacing.Inmanycases,youwanttofindoutwhatpeoplethink.Insomecases,youwanttofindoutwhattheydo.QualitativeresearchThisformofresearchisoftencalled“soft”research.Itischaracterisedby‘openended’questions,What,Who,When,Where,Why,How.Thisformofresearchisgoodforthedepththeresearchercangointowithfollowupquestions.Focusgroupsandinterviewsarethemostcommongatheringmechanismsofqualitativedata.FocusGroupsIsagroupofanywherebetween6-12people.Ideally,theyshouldchosenfromyourtargetmarket.Thegroupissupervisedbetheresearcherwiththeintentionoffacilitatinganopendiscussionthatcanuse‘probing’questions.Insomeinstancesitmaybebettertohavemorethanoneinterviewer;oneforactinguponquestionsandrecords,on