Week 2 - Market Research Flashcards
What is market research?
A business activity that discovers information of use in making marketing decisions
- Essential component of understanding the market
- Should contribute to improved performance
Marketing Process
Market research informs many types of decisions.
- Market segmentation
- Sales Performance
- Product
- Price
- Promotion
- Place
Big Data
By understanding what people do and when, where and why, we can build explanations that:
- Describe people’s current behaviour
- Identify trends
- Identify changes in behavioural patterns over time
- Identify opportunities and areas for action
Components of Market Research
- Defining the research problem
- Designing the research methodology
- Collecting the data
- Analysing data and drawing conclusions
- Presenting the results and making recommendations
Market Research Considerations
Before undertaking market research, the following factors should be considered:
- Relevance
- Timing
- Availability
- Need for new information
- Cost-benefit analysis
Defining Research Problem (1)
The questions which the market research project is intended to answer
- Needs to be clear and specified
- Needs to enable the organisation to make marketing decisions
Defining Research Problem (2)
The original questions can be changed
Defining Research Problem (3)
Setting a good research problem is important
Defining Research Problem (4)
A research brief outlines the research problem and describes the specific information required, generally involved;
1. Research problem
2. Information required
3. Timeframe
4. Budget
5. Any other conditions of the project
Designing the research methodology
Detailed methodology created to guide the research project and address the question
Multiple approaches possible: how you frame your research question will determine the type of research method
Research Types
Exploratory Research
Descriptive Research
Causal Research
Hypothesis
Exploratory Research
Gathers more information about a loosely defined problem
Descriptive Research
Solves a particular and well-defined problem by clarifying the characteristics of certain phenomena
Causal Research
Assumes that a particular variable causes a specific outcome and then, holding everything else constant, test whether the variables does indeed affect that outcome
Hypothesis
A tentative explanation that can be tested
Data Types
Primary data: data collected specifically for the current market
Secondary data: data initially gathered for a purpose other than to address the question (information is already available)
Qualitative Research
Research intended to obtain rich, deep and detailed information about the attitudes and emotions underlying a consumer’s behaviour
Qualitative Research Techniques
Interviews, Focus groups
Quantitative Research
Research that collects information that can be represented numerically
Quantitative Research Techniques involves
Survey, experimentation, observation, neuroscience
Quantitative research useful for
- Monitoring market size
- Identifying market patterns and trends
- Predicting the success of proposed marketing campaigns
- Tracking customers perceptions for existing products
Collecting Data (1)
During research, processes are applied to ensure the research design is properly followed
- Responses are to be recorded correctly
- Biases are to be minimised
- Errors are not to in induced
Collecting Data (2)
Data can be stored or collected in-house or it can be outsourced
Collecting data (3)
Outsourced to an agency taking on the responsibility of the data collection, scraping or mining processes.
Managing Data Collection (1)
Population: All of the things of interest to the researcher in the particular research project
Managing Data Collection (2)
Sampling: The process of choosing members of the total population
Managing Data Collection (3)
Sample: The process of choosing members of the total population
Managing data Collection (4)
A market research in a substantial investment
Managing data collection (5)
It is crucial to accommodate revision within the plan - the use of a Gantt or a critical path can help
Sampling types
Random Sampling: Each member has a chance of being sampled
Stratified Sampling: Each member is grouped on a characteristic, and a sample is extracted from that
Quota Sampling: The population is divided into groups based on a number of characteristics
Convenience Sampling: Participants are selected on the basis of who is available
Data Analysis
Once data is collected it needs to be cleaned and filtered
Quantitative Analysis
Statistical analysis in various program
Report the findings
Once the data is analysed and conclusions are drawn, the findings must be presented in a format that will enable the marketing decision markers to use the information.
Market researchers must typically report key findings in presentation format
Responding to research problem
Marketers must evaluate the effectiveness of each and every marketing activity undertaken to optimise effectiveness.
By undertaking high-quality research we can deliver irrefutable evidence of the return on investment
