4.4+Market+Research

Page 1: Introduction

• Title: Market Research

• Presented by: Mrs. Glasbrenner

Page 2: Role of Market Research

• 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.

Page 3: Purposes of Market Research

• 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?

Page 4: Primary Market Research

• Methods Continued:

  • Surveys

    • One-to-one discussions.

    • Interviews and small discussion groups.

    • Consumer panels and focus groups to observe behaviors and responses.

  • Observations

Page 5: Types of Surveys

• Survey Types:

  • Self-completed surveys

  • Personal interviews

  • Postal surveys

  • Phone interviews

  • Online surveys

Page 6: Effective 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?"

Page 7: Secondary Research Sources

• 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.

Page 8: Ethics in Market Research

• Ethical Considerations:

  • Avoidance of deceitful practices.

  • Transparency and disclosure in research methodologies.

  • Ethical treatment of research participants.

Page 9: Sampling Concepts

• Key Terms:

  • Population: The entire group of interest.

  • Sample: A subset of the population chosen for research.

Page 10: Quota Sampling

• 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.

Page 11: Random Sampling

• Definition: Every individual in the population has an equal chance of being chosen for the sample.

Page 12: Stratified Sampling

• Definition: The process of dividing the population into homogeneous subgroups before sampling.

• Example: Often used in political surveys.

Page 13: Example of Stratified Sampling

• 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.

Page 14: Stratified Sampling Calculation

• 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.

Page 15: Snowball Sampling

• 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.

Page 16: Cluster Sampling

• Definition: A cost-effective sampling method where geographical areas (clusters) are selected to gather feedback.

• Application: Useful when travel time or costs are prohibitive.

Page 17: Sampling Limitations and Errors

• 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.