Unit 3 Flashcards
What is primary data?
involves collecting data that is specific to a company and their needs, conducted by the company itself or a market research company contracted to provide this type of research
Stimulating function of market research
Stimulating function: Market research can be a stimulus for new marketing decisions. In the case of All-Sports GmbH, research could reveal new market segments with untapped sales potential. Options for reorganizing the product range can be discovered via research findings such as introducing specific pieces of popular sporting equipment.
Predictive function: Market research can be utilized to estimate changes in marketing-relevant factors and their potential impact on the business. For t
Predictive function of Market research
Predictive function: Market research can be utilized to estimate changes in marketing-relevant factors and their potential impact on the business. For this sporting goods producer, research can be used to forecast future sales that result from different marketing strategies. Market research can provide All-Sports GmbH with answers to the following questions:
Evaluative Function of Marketing Research
Evaluative function: Market research supports decision-makers to evaluate and choose alternate market approaches. All Sports GmbH can gather information about which product policy has been most successful in the past. Based on these insights, it is possible to assess alternatives for different product policies and make an informed decision about future strategies.
Controlling Function of Market Research
Controlling function: Market research allows a company to collect information about their position in the market and the effectiveness of the marketing measures that they are currently using. All-Sports GmbH can use market research to monitor change in sales figures, turnover of stock, consumer perception of price, degree of brand awareness, etc. and thus monitor the success of any marketing measures implemented (e.g. changes in product range, sales promotion campaigns, etc.).
Affirmative Function of Marketing Research
Affirmative function: One of the functions of marketing research is to provide insights into what has led to specific results. After adjusting the product range (e.g. adding specific items for popular sports), All Sports GmbH may find that sales have in fact increased but that these improvements are the result of natural fluctuations in sales rather than the result of specific marketing initiations.
Secondary research
Secondary research draws on existing data and can be differentiated into secondary research with internal and external sources. In exceptional cases, secondary research can actually replace primary research completely, e.g. when sufficient data has already been collected on a specific issue and is not yet outdated. Even though primary research collects up-to-date data, it should always be complemented by secondary research.
External vs Internal Sources
External sources:
Official national, federal state, municipal, and city statistics (e.g. data on societal changes, eating behavior, health awareness, income, etc. can indicate whether there is a market for new products)
Investigation results and reports from market research institutions, associations, chambers of industry and commerce, and universities (e.g. research on societal changes)
Public information on other fast food companies (e.g. brochures, annual reports, and media reports)
Internal sources:
EAT Ltd.’s own business statistics (e.g. sales figures by region, age, sex, etc.)
Complaints sent to the company (“I would like …”, “I was not satisfied with…”)
Data regarding experiences EAT Ltd. has had with new product launches in other countries
Arguements in favor of Personal interview
Giving out questionnaires in the company’s restaurants means that only existing customers will be interviewed, distorting results about “potential” sales.
In personal surveys, it is easier for the interviewer to control the course of the survey, ensuring that questions are relevant to specific interviewees and leading them to provide additional information. For example, if an interviewee states that they often have vegetarian meals, the interviewer could inquire why this is their preference. This question can easily be omitted for interviewees who do not eat vegetarian meals. Such a control is also possible in written surveys using filter questions (such as “If answered no, proceed with question no. 3 …”), however, this increases the length of the questionnaire, which can potentially cause confusion and disinterest from interviewees particularly if non-customers are included.
