Title: Market Research
Presented by: Mrs. Glasbrenner
Purpose of Market Research (MR)
Ad Hoc: One-off research conducted as necessary.
Continuous: Ongoing activities aimed at discovering customer opinions, beliefs, and preferences.
Generic Types of Market Research: Two primary categories.
Objectives:
Gather up-to-date information.
Inform marketing strategies and assess reactions.
Compare competitors and make predictions.
Key Questions to Address:
Are customers likely to buy the product?
Which market segments show interest?
What price are customers willing to pay?
How frequently are customers likely to purchase?
Which brands are viewed as competitors?
What promotional methods are most effective?
Where and how should products be sold?
Methods Continued:
Surveys
One-to-one discussions.
Interviews and small discussion groups.
Consumer panels and focus groups to observe behaviors and responses.
Observations
Survey Types:
Self-completed surveys
Personal interviews
Postal surveys
Phone interviews
Online surveys
Principles for Effective Surveys:
Focus on clear objectives to gather relevant data.
Employ a mix of closed and open-ended questions for quantitative and qualitative analysis.
Avoid jargon and technical terms to enhance comprehension.
Example Questions:
"How much do you like Coca-Cola?"
"Which brand of cola do you prefer?"
Market Analysis Sources:
Market Research Firms
Competitor Analyses
Trade Publications
Academic Journals
Government Publications (e.g., census, inflation).
Media Articles (newspapers, books, documentaries).
Internet resources encompassing all the above.
Ethical Considerations:
Avoidance of deceitful practices.
Transparency and disclosure in research methodologies.
Ethical treatment of research participants.
Key Terms:
Population: The entire group of interest.
Sample: A subset of the population chosen for research.
Definition: Sampling based on segmentation; group respondents by shared characteristics.
Example: Sample 200 females and 300 males aged 45-60.
Advantages: More reliable findings, cost-effective.
Disadvantages: Potential for non-representative samples and sampling errors.
Definition: Every individual in the population has an equal chance of being chosen for the sample.
Definition: The process of dividing the population into homogeneous subgroups before sampling.
Example: Often used in political surveys.
Scenario: Management wants to assess the timing of the school day.
Demographics of 100 teachers:
40 full-time males
30 full-time females
10 part-time males
20 part-time females
Question: Calculate the stratified sample of 30 from each group.
Calculation Steps:
Full Time Males: 40% of 30 = 12
Full Time Females: 30% of 30 = 9
Part Time Males: 10% of 30 = 3
Part Time Females: 20% of 30 = 6
Total: 30 staff members sampled.
Definition: A method where existing participants suggest additional respondents to increase sample size.
Common Usage: Seen in sectors like finance and health insurance.
Advantages: Cost-effective and easy access to participants' contacts.
Disadvantages: Potential for extreme bias based on lifestyle similarities.
Definition: A cost-effective sampling method where geographical areas (clusters) are selected to gather feedback.
Application: Useful when travel time or costs are prohibitive.
Types of Errors:
Sample Design Errors: Problems in how the sample is structured.
Non-Sampling Errors: Human errors, mistakes in processing.
Sampling Errors: May occur if sample size is too small or not representative, or if inappropriate methods are used, leading to biases.