2.2 Market research

2.2 Market research

Market Research

● Data gathering and recording that provides

businesses with important information about the
markets in which they operate.

● Data can be about:

○Customers

○Competitors

○Market conditions

Market Research: Information Obtained

-Likes and dislikes

-Identify consumer tastes and preferences -
psychographics

-Decide on the best marketing mix - price,
product, promotion, place

-Identify main competitors

-Predict demand

Two approaches to thinking about the
market:

When approaching the market,

Some companies think about the customer first and then create products for their market. These are called "Market Orientated"

Other companies think first about the products or technologies they have, and then figure out which customers will want to use their products. These are called "Product Orientated"

Market vs. Product Orientation

A market orientated company is one that
organises its activities, products and
services around the wants and needs of its
customers.
“What do THEY want us to do”

A product-oriented firm has its primary
focus on its product and on the skills,
knowledge and systems that support that
product.

“What can WE do best”

Market vs. Product Orientation

​Market oriented companies need to use market research to figure out what customers want

Market vs. Product Orientation

​Market oriented companies need to use market research to figure out what customers want

​Product oriented companies are more focused on product development to have the best products for customers

Market vs. Product Orientation

Market vs. Product Orientation

Today, more companies are generally oriented towards what the customer needs

Why?

Market vs. Product Orientation

-Risk of failing is reduced because customer needs have
been identified and accommodated.
-Products that meet and satisfy demands are likely to
last longer in the market.

This makes market research very important as it is a good way of figuring out what customers want

Multiple Choice

This orientation focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.

• Production Orientation

• Sales Orientation

• Market Orientation

• Societal Marketing Orientation

Multiple Choice

Product orientation is

• Consumers will favor products that are available and highly affordable

• Consumers favor products that offer the most quality, performance, and features.

• Consumers will not buy enough of the firm’s products

• Know the needs and wants of the target markets and deliver the desired satisfactions better than competitors.

Multiple Choice

A firm with a production orientation is more likely to survive if:

• There are many small competitors in the marketplace

• Demand for the product exceeds its supply

• The needs of the marketplace are constantly shifting

• Supply for the product exceeds its demand

Multiple Choice

At www.mystarbucksidea.com customers are encouraged to share their ideas and thoughts about how Starbucks can better serve their customers. Starbucks customers told management that they wanted to be recognized for choosing Starbucks coffee. So Starbucks instituted the Starbucks Reward program with money saving benefits to their Starbuck card-holders. Starbucks is an example of a company with a _____-oriented philosophy.

• production

• market

• sales

• societal

Market research

Market research is important to:

1.

Identify consumer needs → reduce the
risk of failure

2.

Understand the reception of current
products in the market → Feedback for
future improvements

3.

Identify strengths and weaknesses of
competitors

4.

Identify appropriate marketing
strategies

5.

Predict consumer preference changes and
trends

Types of market research

Types of market research

​There are two types of market research, primary and secondary

We will see secondary market research first because it is usually conducted before primary research

Types of market research

Secondary research can have different sources
​
Primary research can be quantitative or qualitative.

Quantitative and qualitative market research have different methods that we will see

Secondary Research

Secondary Research

In secondary research organisation representatives search the web and other sources for data gathered and published by others.

The gather, interpret and analyse these data

Sources

Company

Documents

Webpages

Books

Magazines

Databases

Secondary Research

It is also called "desk research" , because it is conducted without going out of the office

Sources

Company

Documents

Webpages

Books

Magazines

Databases

Examples

Examples

Examples

Match

Match the following

• Market research

• Primary research

• Secondary research

a business researching its customers

It is tailored to a company’s specific n

is research that already exists

• a business researching its customers

• It is tailored to a company’s specific n

• is research that already exists

Multiple Choice

Which definition is best suited to secondary research?

• Collects First hand data that has not been collected before.

• Collects data from sources that already exist.

• Collects data from old sources

• Collects data constantly over time

Multiple Choice

Which of the below is NOT a method of secondary research?

• Competitors data

• Internal data

• Consumer Trials

• Government statistics

Multiple Choice

Which of the below is a method of secondary research?

• Trade magazines

• Questionnaires

• Interviews

• Test marketing

Primary Research

Primary Research Methods: 2 Types

●Quantitative:

●Answers “how many?”

○Results an be represented as a number (usually a %)
Tries to be more objective

○Easy to compare

●Qualitative:

●Answers “why?”

○In depth information

○More subjective

○Different context and life experiences = harder to compare

Primary Research

In primary research, the company
collects raw data directly from
customers.

Primary
Sources

Survey

Phone

Online

Interview

Focus Groups

Observation

In person

Primary Research

Surveys are the main quantitative method of collecting primary data

Primary
Sources

Survey

Phone

Online

Interview

Focus Groups

Observation

In person

Quantitative

Primary Research:
Quantitative (surveys)

Quantitative methods

• Surveys are the main way of gathering

quantitative information

• In a survey you ask customers short

questions with short answers (usually
multiple choice)

• Can be conducted in person, by phone,

online or through mail

• You can get many responses, in a fast and

cheap way

Survey questions examples

• Start with a clear

objective

• Keep it as short as

possible

• Consider which

question type is
best for each
question

Surveys: Common Mistakes

●Leading questions:

○Should concerned parents use infant car seats?

●Loaded questions:

○Where do you enjoy drinking sodas?

●Double questions:

○How much do you like the package and choice of flavours?

●Using absolutes:

○Do you always eat breakfast?

●Using unclear language:

○What was the state of the cleanliness of the room?

Surveys: Common Mistakes

●Leading questions:

○Should concerned parents use infant car seats?

○Do you think special car seats should be required for infant
passengers?

●Loaded questions:

○Where do you enjoy drinking sodas?

○How often you drink sodas?
(Frequently/Sometimes/Rarely/Never)

○Where do you enjoy drinking sodas?

Surveys: Common Mistakes

●Double questions:

○How much do you like the package and choice of flavours?

○How much do your like the package?

○How much do you like the choice of flavours?

●Using absolutes:

○Do you always eat breakfast?

○How many days in a typical week do you eat breakfast? (7
days/4-6 days/1-3 days/ I usually don’t eat breakfast)

●Using unclear language:

○What was the state of the cleanliness of the room?

○How clean was the room?

Multiple Choice

What is data?

• The practise of collecting and analysing data
• The factual information collected from a survey or other source 
• An element or feature that can vary
• A group chosen from a population

Multiple Choice

What type of data involved numbers?

• Quantitative

• Qualitative

Multiple Choice

Which of the following is NOT an example of primary research?

• Focus Groups

• Questinnaires

• Observations

• Newspapers

Multiple Choice

Surveys help us to determine

• Facts

• Opinions

• Answers

• Figures

Multiple Select

Survey Instruments can be in the form of

• Paper Questionnaire

• In Person Interview

• Online (survey monkey, google form)

• All of the above

Multiple Choice

Which of the following is most likely to provide a business with primary market research?

• A television show
• A customer survey
• A newspaper article
• An Australian Bureau of Statistics Publication

Analysis of Primary Research results

● Quantitative market research data can be shown in the form of graphs, charts and diagrams

● Conclusions can be drawn from such data

● Four tools to show quantitative data are:
Tables
Bar charts
Pie charts
Line charts

Tables

Bar Charts

Tables allow showing a lot of
information

Bar charts allow to get a sense of
the numbers

Pie Charts

Line Chart

Line charts are mostly used to show trends
over time

Pie charts allow to see
relative importance

Primary Research:
Qualitative methods

Primary Research - Qualitative

In primary research, the company
collects raw data directly from
customers.

Primary
Sources

Survey

Phone

Online

Interviews

Focus
Groups

Observation

Qualitative

In person

Qualitative research

• Qualitative research aims for a deep understanding of the customer's preferences, attitudes, beliefs, feelings, and behaviours

• Its methods use a small numbers of people

• They take much longer than a survey

• You can get rich information from which you draw inferences about the customers

• Main methods are: Interviews, Focus Groups and Observation

Qualitative methods

●Interviews

○One on one conversation with a
customer/consumer 30 to 45 minutes
long

○Uses a guide of open-ended questions

○Interviewer digs in deeper with
follow-up questions

Qualitative methods

●Focus group

○Small sample of respondents (usually
between 6 and 9) along with a moderator

○The moderator has questions prepared
for each session

○The goal is to create a natural dialogue

○The researchers video and analyze the
results

Qualitative methods

●Observation

○The researchers observe customers in a natural
setting

○For example, observing shoppers at a
supermarket, customers at a restaurant

○Observe and record what customers do, who
they are with, how they relate with the objects
and people at the place

○The advantage of this is that people don’t
always do as they say

Multiple Choice

Which type of data involves people's feelings and opinions?

• Quantitative

• Qualitative

Match

Match the following

• Market research

• Primary research

• Secondary research

a business researching its customers

It is tailored to a company’s specific n

is research that already exists

• a business researching its customers

• It is tailored to a company’s specific n

• is research that already exists

Categorize

Options (10)

Questionnaires

Observations

Focus Groups

Interviews

Government reports

News articles

Competitor Data

Reports produced by market research agencies

Trade Journals

Social Media

Organise these options into the right categories

Primary Research

Secondary Research

Categorize

Options (8)

Focus groups

Interviews

News articles

Trade journals

Social media

Government statistics

Questionnaires using closed questions

Data from published Market research reports

Organize these options into the right categories

QUALITATIVE

QUANTITATIVE

Primary vs Secondary Market Research

Factors Influencing the Accuracy of Market
Research
Data collection is VERY important.

However, the information might not always be valuable.

Companies need to avoid:

1. Using a sample that is too small or not representative of the population they are trying to study

2. Choosing the wrong method, or making mistakes in designing the questions

3. Recordings information inaccurately

4. Using secondary research inappropriately (as this information was collected for a different purpose to yours) or using out of date information

Drag and Drop

​

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— a selection of ​

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representing a specific ​

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or target market. For example, when researching ​

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, the sample will likely be representative and made up of young ​

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, not OAPs

Drag these tiles and drop them in the correct blank above

Sample

individuals

group

pushchairs

parents

Multiple Choice

Advantages of Secondary Research:

• Up to date information

• Quick and convenient to gather

• First hand information

• Recent data

Multiple Choice

Advantages of Primary Research:

• Up to date and new recent information.

• Quick and convenient to gather

• affordable

• widely available

Drag and Drop

Questionnaires
​

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are asked ​

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from a ​

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of written questions. It can be done face-to-face, online or via ​

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.

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Respondents

questions

post

set

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​

Select answer

(​

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) data — Information you can ​

Select answer

or reduce to a ​

Select answer

. “How often do you go to the cinema a week?”.

Dropdown

​

Select answer

(​

Select answer

) data — Information that is about people’s ​

Select answer

, judgements, attitudes and ​

Select answer

. “What is your favourite colour?”.