Process: Market research

Question 1

What is market research

Answer 1

Market research is the process of systematically collecting, recording and analysing information concerning a specific marketing problem. This in turn, helps create a marketing plan. To obtain accurate information, marketing managers usually follow a three-step approach:

Question 2

Three step process

Answer 2

1. Determining information needs
The information collected must be relevant to the issue being investigated. The best method to determine the relevance of data is to constantly ask questions concerning its ultimate use. Information is useful if it helps businesses target their market, meet their objectives and assist in increasing sales.
2. Collating primary and secondary data
Marketing data refers to the information — usually facts and figures — relevant to the defined marketing problem. Normally, market researchers use a combination of two types of data: primary and secondary data-
3. Analysing and interpreting data
The first step of data collection is drawing conclusions (analysis and interpretation). This information can be displayed in table format to allow comparisons to be made between individual categories. For example, cross-tabulation could show how men and women display different shopping habits, or the differences between the purchasing behaviour of high- and low-income earners.

Question 3

Primary and secondary research

Answer 3

Primary

Facts and figures collected from original sources for the purpose specific research problems. e.g. survey and focus group

Surveys – sample size
Focus group – Small group (e.g., 10 people brought together because they have similar traits could include responding to interviewee questions and/or testing products, providing feedback)
Interviews – one-on-one responding to marketers questions
Observation and counting (public and private e.g., IKEA Life @ Home)

Secondary

acts and figures already collected by another, e.g. Australian statistics

Facts and figures includes demographic statistics, geographic location, behaviour (e.g. patterns of purchasing). Accessed from ABS (population demographics), government departments, industry organisations, academic research, general media.

Question 4

IKEA CASE STUDY

Answer 4

Ikea surveys 1000 shoppers each year

Life @ IKEA conducts between 400-600 home visits each year to examine the living patterns of people. Enables IKEA to construct new products suited to their lifestyle