Lesson 4: Market Research Flashcards
the process of gathering, analyzing and
interpreting the information about the
products or services to be offered for
sale to the potential consumers in the
market
market research
through market research, we can identify
the who, what, how’s of our potential market
the who refers to
who will use the product/service
the what refers to
what are the current products/services they purchase?
the how’s refers to
how much can they afford; how are they buying the product/service
the what helps in knowing
who are the competitors in the market
the how’s helps in knowing the
price and preferences in terms of packaging/delivery and variants
For us to know the who, what, and how’s - we need to
collect data
The most valuable tool in any type of research study
data collection
inaccuracy in data collection may cause
mistakes and ultimately invalid results
tips in collecting data
organize collected data as soon as it is available; know what message you want to get across and then collect data that is relevant to that message; collect more data; create more data; regularly run experiments or collect data; challenge your assumptions; set reasonable expectations; take note of interesting or significnant data
The most common way to gather
primary research
use of questionnaires and interview schedule
questionnaires and interview schedule can be done through
direct mail, phone, internet/email, f2f, online
tips for surveys
keep it as simple as possible; make sure it is clearly appealing and easy to read; cluster or block related questions; move from complex questions to more specific questions; make sure questions are concise and easily understood; avoid questions that are difficult to answer; make sure response scales used are consistent with categories that are mutually exclusive
results from surveys will provide the following data
demographic profile of the potential market; benchmark for pricing; total demand (forecast)
Which age group are willing to purchase your
product?
demographic profile of the potential market
given the demographic profile of the potential market, you will know
whom you will prioritize and exert effort in promotional/marketing activities
what questions do you ask in the demographic profile of the potential market
name (optional); gender; age; civil status; location; social status
The
amount your potential market is
willing to spend for your product.
benchmark for pricing
questions for benchmark for pricing
how much are you willing to spend
The tool used
to predict total customer demand will be
for a product or service, with varying levels
of specificity.
total demand (forecast)
questions for total demand (forecast)
how often will you buy the products; how many/much will you buy
The most reliable and credible ways of getting relevant
information from target customers.
interviews
can be used as a guide in conducting
interviews.
survey questionnaires
interviews are typically done
in person between the researcher/entrepreneur and a respondent
what does the researcher/entrepreneur ask
pertinent questions that will give significant information about the problem that he/she will solve
the interview is also helpful even when
the business has already started
provides the entrepreneur a glimpse of what customers
think about the business.
customer’s feedback
Interviews may last from
15-40 minutes
but can last longer depending on the participant’s interest in the topic
two interview methods
personal or telephone interview
An excellent method for generating and screening ideas and concepts,
focus group discussions
focus group discussions use either or both of the following activities
moderated group interviews; brainstorming session
how long is a focus group discussion
90-120 minutes
how many participants should there be in a focus group discussion
8-10
who should you assign to manage group dynamics in the focus group discussion
expert moderator/facilitator
market research uses a
semi-structured or open-format discussion
market research should strive for
consistency in the group’s composition
The process of gathering, analyzing and interpreting the information about the products or services to be offered for sale to the potential consumers in the market
market research
the data or information from market research is reflected in the
marketing plan of the business plan
sections of the marketing plan
description of the product; comparison of the product; location; market area; main customers; total demand; market share; selling price; sales forecast; promotional measures; marketing budget
what sections can we input the data gathered from the survey/interview/FGD?
comparison of the product; location; market area; main customers; total demand; market share; selling price; sales forecast; promotional measures
Therefore, survey questionnaires/interview
guide questions should be
crafted carefully to avoid erroneous questions/data
the number of participants or
observations included in the
research/study.
sample size
The size of a
sample influences two statistical
properties:
precision of our estimates; the power of the study to draw conclusions
how to determine the sample size
slovin’s formula
consists of members of a group that a researcher is interested in studying the members of a group that usually have common or similar characteristics.
population
N stands for
population
is the allowable error margin in research.
margin of error
confidence interval of 95% gives a margin of error of
5%
confidence interval of 98% gives a margin of error of
2%
confidence interval of 99% gives a margin of error of
1%
the probability that your sample accurately reflects the attitudes of your population.
confidence level/confidence interval
industry standard confidence level
95%
what is slovin’s formula
n = N / 1+Ne²
n in slovins formula refers to
sample size
N in slovins formula refers to
total population
e in slovins formula refers to
margin of error
steps in the marketing plan
create the survey questionnaire; identify the sample size; conduct the survey; collection; tallying the data; interpretation of the results
delivery options for survey
google forms; printed survey questionnaires
refers to the total quantity of a product or
service that consumers are willing and able
to purchase at a given price and time
total demand
formula for market share
total sales of the company / total sales of the entire market x 100
the traditional method of conducting an
interview.
personal interviews
personal interviews allow the research to
establish relationship with potential participants and therefore gain their cooperation
personal interviews generate the
highest response rate in survey research
personal interviews allow the researcher to
clarify indefinite answers and seek follow-up information
less expensive and less time-consuming, but the
disadvantages are that the response rate is not as high as the face-to-face
interview, but considerably higher than the mailed questionnaire.
telephone interviews
