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