INTRODUCTION TO MARKET RESEARCH

WHAT IS MARKET RESEARCH?

•  Process of defining a marketing problem or opportunity

•  Collection and analysis of information

•  Recommend marketing initiatives to improve a product

•  Can be general (ie. A company’s branding image) or specific (ie. A product’s key features)

SECONDARY RESEARCH

INTERNAL SOURCES

•  Company Accounts

•  Internal Reports and Analysis

•  Stock Analysis

•  Retail Data - loyalty cards, till data, etc.

EXTERNAL SOURCES

•  Government Stats •  EU - Euro Stats •  Trade Publications •  Commercial Data •  Available Surveys •  Other Firms’ Research •  Research Documents – publications, journals,

etc.

PRIMARY RESEARCH

WHAT IS PRIMARY RESEARCH

•  First hand information

•  Expensive to collect, analyse and evaluate

•  Can be highly focused and relevant

•  Care needs to be taken with the approach and methodology to ensure accuracy

•  Types of question: •  Closed – limited information gained •  Open – useful information but difficult to analyse

WHAT IS PRIMARY RESEARCH?

•  Surveys •  Ie. feedback forms (Internet) •  Can be sent/completed in many different ways

•  In-depth Interviews (IDI) •  An interview looking for explanations of purchasing/usage

behaviour

•  Focus Groups •  A group interview that takes place in a facility •  Could be tactile (get to use/touch/see actual product)

PROS AND CONS OF PRIMARY RESEARCH

Type PROS CONS

Survey •  Reach large sample •  Not biased or

persuaded by others around them

•  Less expensive

•  Can’t probe •  Mistakes in the data is hard

to follow up with

IDIs •  Probe for more information

•  Can learn new ideas •  Watch body language •  Can touch/see

product

•  Time consuming •  Expensive

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PROS AND CONS OF PRIMARY RESEARCH

Type PROS CONS

Focus Groups •  Can feed off of each other, get insight into what’s considered important

•  Watch body language •  Can touch/see

product

•  Swayed by others opinions •  May not speak up •  Very expensive

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SAMPLING METHODS

SAMPLING METHODS

•  Random Samples: equal chance of anyone being picked •  May select those not in the target group •  Sample sizes may need to be large to be representative •  Which means it can be very expensive

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SAMPLING METHODS

•  Stratified/Segment Random Sampling •  Samples on the basis of a representative strata or

segment (so those you are actually looking to find; have common traits)

•  Still random but more focused •  May give more relevant information •  May be more cost effective

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SAMPLING METHODS

•  Quota Sampling •  Again – by segment •  Not randomly selected – ie. First 10 through the door •  Specific number on each segment are interviewed, etc. •  May not be fully representative •  Cheaper method

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SAMPLING METHODS

•  Cluster Sampling •  Primarily based on geographical areas or ‘clusters’ that

can be seen as being representative of the whole population (ie. Toronto vs Milton)

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SAMPLING METHODS

•  Snowball Sampling •  Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

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QUANTITATIVE VS QUALITATIVE DATA

•  Quantitative •  Based on numbers •  Doesn’t tell you why,

when, how

•  Qualitative •  Gives more detail – tells

you why, when and how!

PURPOSE

WHY MARKET RESEARCH?

•  Exploratory: •  Preliminary •  What is the problem? •  How large/small is the impact on the company/

product? •  For example: Why is consumption of milk at an all-time

low?)

•  Descriptive: •  Describes characteristics of a population or profile •  Already know the marketing problem •  Looking for specific answers •  For example: What is the size of the market? What is the

profile of the purchaser?

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WHY MARKET RESEARCH?

•  Causal: •  Determine cause-and-

effect relationships among variables

•  For example: How will this price change impact adoption of my product?

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MARKET RESEARCH

•  Advantages of Market Research •  Helps focus attention on objectives

•  Aids forecasting, planning and strategic development

•  May help to reduce risk of new product development

•  Communicates image, vision, etc.

•  Globalisation makes market information valuable

MARKET RESEARCH

•  Disadvantages of Market Research •  Information only as good as the methodology used

•  Can be inaccurate or unreliable

•  Results may not be what the business wants to hear!

•  May stifle initiative and ‘gut feeling’

•  Always a problem that we may never know enough to be sure!

ETHICS IN MARKET RESEARCH

•  What are some ethics do be aware of when doing market research? •  Your information cannot be sold to other companies/

vendors

•  Your personal information is confidential and not released to the public

•  A disclosure is provided detailing any possible use of your information and data

•  You won’t be solicited to purchase a product following provision of information

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ETHICAL SCENARIOS

Coca-Cola is conducting a taste test in the mall. They collect the tasters address and

email address and then sell that information (without telling the tasters) to other

companies who want to send advertisements to the tasters.

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ETHICAL SCENARIOS

Danone is offering free samples of their new yogurt in the Supermarket and asking tasters to fill out a quick survey following the taste. Some research has shown that the yogurt’s

anti-oxidant ingredients may cause an upset stomach to some people.

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ETHICAL SCENARIOS

Nine-year old Kelly is asked to complete an Internet survey in order to play an online

game. The survey is for Molson Canadian, a beer manufacturer and respondents are

supposed to be legal drinking age (19). The survey states that all respondents must be 19

years old.

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ETHICAL SCENARIOS

Lululemon is conducting in-store interviews with their willing customers to gather data regarding potential improvements to the store. During the

interview the Lululemon Representative shows the customer a number of new products Lululemon

has just come out with, hoping that the customer will show interest and purchase those items

following the interview.

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