Chapter 2: Market Research Design Flashcards
When to use market research
For big decisions and those where there is insufficient knowledge to move forward.
Gestation period for market research idea (p. 18)
What happens: Idea, business problem, business opportunity —> internal debate —> external debate —> information collection
Ad hoc research
Projects are carried out for individual clients and designed as one-offs to meet specific needs and objectives.
ESOMAR (http://www.esomar.org/)
An excellent source of market research companies around the world
Research Brief
A statement from the sponsor setting out the objectives and background to the case in sufficient detail to enable the researcher to plan an appropriate study.
*As a general rule, a market research study is only as good as the brief. The brief is important to the researcher: it educates and influences the choice of method. It gives the objective to which the project is geared.
Details included in research brief
The decisions that will be made with the information that is obtained, specifically what information is required, and when it needs to be delivered.
Questions to be considered when preparing the brief
1 What action will be taken when the research is completed? What would be the risk of not doing the research?
2 What has caused this problem or led to this opportunity?
3 What is known about the area of research already?
4 Target groups for the research.
5 What specific information is needed from the research (for example, market size, trends, buying behaviour, customer satisfaction, customer needs, segmentation)?
6 What is the proposed budget?
7 Are there any initial ideas for the research method?
8 Are there any reporting requirements?
9 When are the findings required?
Research proposal
A written proposal to the sponsor that states an appreciation of the problem, the objectives, the research method and the timing.
*CAVEAT: Flexibility is going to be needed on many aspects of the work, and as the research progresses and information is uncovered, there will be changes made to the original objectives and possibly some changes to the details of the research design
Accuracy/cost trade off (for data)
accuracy has a price; as a general rule, increases in accuracy not only cost more but cost disproportionately more.
Questions to assess the ROI of market research projects
5 = high/important; 1 = low/not important
What is the size of the investment for which market intelligence will guide the decision?
What is the need for market knowledge that does not already exist within the organization?
What is the risk to the business of taking a decision without market intelligence?
What is the need for independent research to resolve internal differences on a proposed decision?
What to expect in a proposal (return of brief) pp. 28 - 31
The proposal is one of the most important documents a researcher ever writes. It is the equivalent of an architect’s drawing. It is the plan, the schema, that shows what will be achieved and how it will be achieved.
It includes:
Introduction
Scope
Objectives
Methods
Research team
Timing and costs
