1 / 21

The Market Research Process

The Market Research Process. Chapter 29.1. 5 Steps of the Market Research Process. Define the Problem Obtaining Data Analyzing Data Recommending Solutions Applying the Results. Step 1: Defining the Problem. Most difficult step of the research process

lyle
Download Presentation

The Market Research Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Market Research Process Chapter 29.1

  2. 5 Steps of the Market Research Process • Define the Problem • Obtaining Data • Analyzing Data • Recommending Solutions • Applying the Results

  3. Step 1: Defining the Problem • Most difficult step of the research process • Problem definitionoccurs when a business clearly identifies a problem and what is needed to solve it. • Helps researcher create objectives that will help answer the problem • Objectives are used to develop the actual question

  4. Step 2: Obtaining Data • Data (or facts) are collected • Primary Data - obtained for the first time and used specifically for the particular problem under study • Secondary Data - already exists; previously collected for some other purpose

  5. Obtaining Data

  6. Ways to collect Secondary Data • Internet Sources – company home pages, digital dossiers, business clearinghouses • U.S. and State Government Sources – data collected by the government, like population demographics and economic trends • Specialized Research – companies collect data to sell to other businesses like demographic data, economic forecasts, and consumer purchase information • Business Publications – BusinessWeek, Forbes, Wall Street Journal

  7. Ways to collect Secondary Data • U.S. and State Government Sources – data collected by the government, like population demographics and economic trends • Specialized Research – companies collect data to sell to other businesses like demographic data, economic forecasts, and consumer purchase information

  8. Secondary Data Advantages Disadvantages • Easily obtained • No or low cost • Saves time and money • Data may not be suitable for the problem under study • Can be inaccurate

  9. Ways to collect Primary Data • The Survey Method • The Technological Method • Interviews • The Observation Method • The Experimental Method

  10. The Survey Method • Information is gathered from people through the use of surveys or questionnaires • Most frequently used method • Conducted in person, by phone, by mail or Internet • Census– survey the entire target population • Not usual because population is normally too large and it would cost too much money and time • Sample– part of the target population that represents it accurately • Size of sample depends on the amount of time and money available • Generally speaking, the larger the sample the more accurate the results

  11. Technological Method • Online surveys and focus groups – survey is conducted in a “chat room” environment • Smart Phones/Devices – IPods, smartphones • Fax broadcasts – questionnaires can be sent to a select group of fax numbers • Automated dialers • automatically rejects busy signals and answering machines • Prerecorded voice walks caller through a series of questions and caller responds with key pad

  12. Interviews • Questioning people face-to-face • Because it is expensive they are usually conducted in central locations • “Mall Intercept Interviews” - (started in shopping malls) • Focus Group Interview – 8-12 people brought together to evaluate advertising, product, or packaging under the direction of a moderator

  13. Advantages and Disadvantages

  14. The Observation Method • Peoples actions are watched and recorded • Better results because people are unaware that they are being observed • Mystery Shoppers – sent in to observe interactions between customers and employees • Disadvantage – cannot measure attitude or motivation

  15. The Observation Method • Point-of-Sale Research – combines natural observation with personal interview • People can explain their buying behavior

  16. The Experimental Method • Researcher observes results when changing one or more marketing variables while keeping all the others constant • Used to test: • New package design • Media usage • New promotions

  17. Step 3: Analyzing the Data • The process of compiling, analyzing and interpreting results • Data Mining – computer process that uses statistical methods to extract new information from large amounts of data

  18. Step 4: Recommending Solutions to the Problem • Conclusions drawn form research are usually presented in an organized report

  19. Step 5: Applying the Results • After research is completed and changes have been made, businesses must monitor the results carefully. • The research efforts were a success if resulting decisions lead to increased sales.

  20. Market Research Flow Chart

  21. Review • What are the five steps to market research? • Defining the problem, obtaining data, analyzing data, recommending solutions, applying results • What are the two types of research? • Primary and Secondary • What are the five methods used to collect primary data? • Survey methods, technological method, interview, observation method, experimental method

More Related