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MARKET RESEARCH

MARKET RESEARCH . ROLE AND IMPORTANCE OF MARKET RESEARCH . Process of collecting and analyzing data for a good/service in a market Analyzing consumer reaction to eg . Price changes, forms of promotion, packaging Impacts marketing decisions . IMPORTANCE OF A RESEARCH PLAN.

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MARKET RESEARCH

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  1. MARKET RESEARCH

  2. ROLE AND IMPORTANCE OF MARKET RESEARCH • Process of collecting and analyzing data for a good/service in a market • Analyzing consumer reaction to eg. Price changes, forms of promotion, packaging • Impacts marketing decisions

  3. IMPORTANCE OF A RESEARCH PLAN • Reduce risk of new product launches • Predict future changes • Explain patterns in sales of existing products and market trends • Assess most popular designs, flavors, styles, promotions and packages

  4. STAGES OF MARKET RESEARCH • Management problem identification • Research objectives • Sources of data (primary, secondary) • Sampling (probability, non probability) • Research techniques (focus groups, surveys, in depth interviews, observation) • Analysis and presentation of results

  5. MANAGEMENT PROBLEMIDENTIFICATION • Most important step in process • Clear idea of purpose of research of problem to be investigated What is the size of the potential market for our product? Why are sales falling? How can we challenge our competitors?

  6. MARKET RESEARCH OBJECTIVES • Must tie in with original problem • Set to collect all information needed to solve problem How many people are willing to buy our product? If we advertise via newspaper, what will be the impact on sales and market share?

  7. SOURCES OF DATA • Primary: original data gathered from people in target market • Secondary: use and analysis of data that already exist Secondary data may be more beneficial and should be undertaken first! Advantages: cheap, quick, identifies nature of market/helps plan for primary research, comparison of data from different sources Disadvantages: out of date, unsuitable/irrelevant, inaccurate, not available for new product developments

  8. SECONDARY SOURCES OF DATA • Government publications: social indicators report, economic trends, annual abstract of statistics, family expenditure survey • Local libraries and local government offices • Trade organizations: society of motor traders, furniture retailers assoc, engineering employers federation • Market intelligence reports: mintel, keynotes, business monitor intl, euromonitor • Newspapers and specialist publications: marketing journals, financial times • Internal company records

  9. SAMPLING • Probability and non probability sampling • Sample size: larger samples give better results • Cost and time to consider

  10. PROBABILITY VS NON PROBABILITY SAMPLING

  11. RESEARCH TECHNIQUES • Quantitative: number of consumers who may buy a product and in what quantities • Qualitative: discovering motivational factors behind consumer buying habits

  12. QUANTITATIVE RESEARCH • OBSERVATION: how consumers behave • TEST MARKETING: testing limited quantity of new product on the market • CONSUMER SURVEYS: directly asking consumers about preferences or opinions

  13. Who to ask? : sample must represent population • What to ask? : clear, logical questions • How to ask? : self completed questionnaire or direct interview • How accurate is it? : sampling bias, questionnaire bias, untruthfulness

  14. QUALITATIVE RESEARCH • FOCUS GROUPS

  15. PRESENTATION OF RESULTS • Bar charts • Histograms • Line graphs • Pie charts

  16. LIMITATION OF MARKET RESEARCH 90% of products fail after they have been launched! PROBLEMS WITH PRIMARY DATA • Reliability of data • Human behavior: untruthful, unpredictable • Sampling and bias: sample may not represent population (sampling discrepancy) • Badly constructed questionnaires, leading questions PROBLEMS WITH SECONDARY DATA • out of date, unsuitable/irrelevant, inaccurate, not available for new product developments

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