Market research is the cost effective collection and analysis of information about the customer and market to support better business decisions. The key to market research is obtaining useful information, both perceptual and factual. It’s important to know what the customer knows, (awareness and familiarity), what the customer thinks and values (opinions and beliefs), what the customer feels (attitudes and emotions), what the customer does and is likely to do (usage and behavior), and what drives and motivates the customer to buy. Whether a business is looking to develop new opportunities or to expand their existing base, market research is vital in that it cannot be obtained from any other source.
Why Do Market Research?
The customer base is never static. Markets shrink, grow and segment constantly requiring frequent adjustments by the successful enterprise. The primary benefit of market research is to help business understand the customer. Through usage and attitude studies a business can better understand customer needs and their reaction to a product or service. Just as important is an understanding of customer reaction to a competitor’s product or service. Market research attempts to assess a range of intangibles about customer preferences, purchasing patterns and contentment, thereby helping to better focus resources.
There is a marked difference between price and value. Market research tells the business what motivates the customer to buy. Knowing the answer helps the firm set the price for its product or service. While some customers look only at price, others consider dependability and value.
The Term Paper on Market Research proposal
... up with different strategies like introducing new innovative services and products to retain their customers. However when a bank comes up with ... is to look on how to increase the market share.3.2Research Problem:The research problem refers to the main areas that will ... three in Nairobi (Mugambi, 2005).According to the Nation Radio Business News report, aired on Monday 14th March, 2005 at 6:30pm, ...
Market research is needed to test and develop new products and services. Is the product or service needed? Information for innovative new products is rarely available except through market research. Businesses discover where the most lucrative areas for their new product or service are, and what the most effective launch programs are.
The most famous last words inside any firm are: “We don’t have any real competition.” According to The Digital Economy:
– Of the companies on the 1979 list (of Fortune 500 companies), 40% no longer exist as corporate entities.
– Most medium- or large-sized companies in North America introduce more than one new product per day. Last year Sony introduced 5000 new products. Even something as seemingly stable and low-tech as beer requires innovation; 90% of Miller’s revenues come from beers that didn’t exist 24 months ago.
– Product life cycles are cratering. In 1990, automobiles took six years from concept to production. Today they take two years.
– Hewlett-Packard’s Computer Systems Organization chief Wim Roelandts says that most of HP’s revenues come from products that didn’t exist a year ago. .(The Digital Economy, 2001)
Gaining insight into the competition through competitor analysis provides insight into strengths and weaknesses of rivals and identifies potential emerging competition. Competitor analysis allows a business to learn from the mistakes of others especially when introducing a new product as well as improve upon their successes.
Questions answered include: How many similar firms exist? What are the competitors market share and sales volume? What attracts customers to the business and product or service?
Internally, market research can boost an organizations performance by helping with self-assessment, and improving internal communications. An organization can monitor unit morale in this way.
The goal of market research is to access the market by determining who the customer is, what the customer wants, where and when they want it and what motivates them to buy. Who the customer is includes trends, such as population shifts, the local and/or national economic environment, lifestyles, age, income, occupation, and family status.
The Essay on Describe how marketing techniques are used to market products in two organisations
... http://nikeinc. com/pages/history-heritage Marketing The action or business of promoting and selling products or services, including market research and advertising. http://www. oxforddictionaries. com/definition/english/marketing The activities ... they will have to provide a high level of customer service as they need customers to make a profit. Marketing Techniques Nike used ...
Market research works because by talking to a relatively few people a business can find out about a much larger universe of people. The universe could be anything from the entire population to one of an infinite number of sub-groups.
If the sample is representative of the group the business is interested in, and if the right questions are asked, market research is the most cost-effective way of finding out what a business wants to know.
Market knowledge answers the key question about the degree of success of the current marketing strategy in relation to the return on investment by answering several other questions.
Can, and will, the customer buy the products and services offered, where they’re being offered at the time they’re being offered? Are prices consistent with perceived value?
It’s not always the lowest price that attracts customers. Maybe doubling the price actually increases sales. Are promotional programs appealing to the customer and effective? How does the overall operation compare with the competition? Market research may suggest that the only way to answer these questions is by launching a product or service and see what happens.
Market research can help determine the strengths and weaknesses of the various methods of reaching the customer.
An examination of the salespeople, distributors, direct mail methods, dealerships, telemarketing, trade shows, Internet, vending machine and giveaways are a few of the distribution methods a marketing research effort would look at.
Because the potential markets of a large enterprise can be so extensive and encompass so many groups the most effective way to undertake market research for these firms is to contract with a professional researcher. However, smaller businesses hold an advantage as they are closer to their customers and react more quickly to changes in customer buying habits and changes in the local economy. (www.bizmove.com)
The Term Paper on Marketing Notes Information Research Market
... survey questions when they do not know the answer in order to appear smarter or more informed. - Experimental research: The gathering of primary data ... and selling of goods. Customer - The company needs to study its customer market closely. - 5 Types of customer market: 1. Consumer Market: consist of individuals and ...
Conducting Market Research
Basic market research need not be expensive. In some cases the information a business needs is already available through one of several sources of secondary data.
Trade associations keep customer analysis peculiar to a firm’s expertise. Local Chamber of Commerce offices, media computer services, industry publications and even the public library are good sources of information. Demographic data can be researched through the Census Bureau.
Employees are one of the best sources of information about customers because they work more directly, hear the praise and complaints that never make it to upper management and are more aware of product requests. It all adds up to a good customer profile.
Company data, sales records, and complaints can give a good idea of customer demographic information, where they live, what they buy and at what time.
Much of this information can then be cross-referenced against advertising, promotions and sales events.
Keeping an eye on the competition through price monitoring, advertising placements, and sales events can help point out market needs. Perhaps no one else is offering a particular product or service.
The two basic types of marketing research are quantitative and qualitative. Usually involving surveys, quantitative research answers questions that start with “how many” or “how much.” qualitative research studies rely on observation and unstructured conversations addressing issues that deal with “why” or “how.”
The marketing research process consists of a planned, systematic gathering of market information to assist in managerial decision making-consisting of the following steps.
1. Define the Purpose and Objectives of the Research
The objective of marketing research is to address a specific problem, decision or question that necessitated the research.
2. Determine Data Sources
Data sources include secondary or published sources and primary sources. (those requiring original research such as surveys, experiments and observation).
The Research paper on Base Her Studhypotheses Research Group Hypotheses
Lastly, the Discussion is satisfactory in the way it interprets the findings of the study and relates them to the researcher's purpose for conducting the study in the first place. That is, Frick-Horbury agreeably makes generalizations based on the data. She shows how some of her hypotheses were verified, while others were not. Now I will be able to use some of these generalizations / conclusions ...
Secondary sources can provide inexpensive readily available information so checking them first is a good idea. If secondary sources cannot provide the needed information then primary data needs to be collected.
3. Design the Survey
The kind of questions in the survey depends on what the objective of the research is.
4. Design the Sample
The goal of sampling is to obtain responses from representatives of the entire population of interest.
5. Implement the Plan
6. Analyze the Data
7. Take Action
Quantitative Research
Quantitative research deals in logic and the objective and is undertaken with a specific purpose. As an investigative technique, quantitative research is the statistical element of market research providing numerical, primary data based on respondents’ answers to the same set of questions.
The purpose of the data is to show what percentage of the target group wants something, is aware of something, thinks about something, is inclined to act or behave in a certain way, is likely to buy something or is in favor or a particular service.
The traditional empirical quantitative market research technique is the survey questionnaire. Administered to a random sample of the population target group the questionnaire and be accomplished through face-to-face interviewing, by telephone and by mail.
While cheaper the mail survey can take a relatively long time to collect and the fact that they are self-completed means the questions must be simplified and the researcher has little control once the survey is in the mail. The telephone survey makes it difficult to conduct long interviews but can provide data quickly and is good for local and small- scale projects. Face-to-face interviewing is still the best for complex projects and lengthy interviewing. Face-to-face allows a rapport to develop between the interviewer and the respondent.
The emphasis of quantitative market research is on breadth, sample representation, confidence levels and significance tests that are fine for collecting objective data but lack the ability to measure consumer behavior.
In addition, the emphasis on a wider sample span both reduces the depth of data and makes follow-up more difficult without a total re-survey. At the same time there is a realistic limit to the detail survey questionnaires can get into without trying the patience of the respondents.
The Research paper on The Swatch Group Industry Watch Market
Maryam TahririhaGSB 576 L. Grant Swatch and the Global Watch Industry Case Analysis July 13, 2005 THE SWATCH GROUP: COMPETING IN AN INCREASINGLY GLOBAL MARKET FOR WATCHES Nicholas Hayek and Ernst Thome formed the Swatch Group (the Group) in 1983 by merging two bankrupt watch-making groups. The merger gave the Group ownership of many of the Switzerland's dominant watch brands. Swatch, their first ...
Qualitative Research
Why things are as they are is the focus of qualitative market research. Qualitative research allows companies to obtain richer data about customers and the market as a whole because there are no fixed assumptions about what is, or is not, important. Attitudes and beliefs of the relevant groups are explored to generate ideas.
The focus group brings together a small relevant group allowing for the sharing of experiences and interaction of the various personalities.
It is a free flowing of ideas that wouldn’t be possible in a written survey. Group members influence each other by responding to ideas and comments during the discussion.
The rule for selecting people for focus groups is commonality rather than diversity. People tend to disclose more to people who resemble them in various ways than to people who differ from them. The kind of homogeneity you needed depends on the specific purpose of the research. (The Market Research Society, 2001)
The focus group provides a subjective but not necessarily statistically valid understanding of a carefully defined area or interest andor interaction with a product.
Advantages include giving the business a deeper understanding of how their firm, product or service is perceived, the participants leave with a hopefully good understanding of the company, and they allow for a better preparation of product presentation to a much larger group through advertising and promotions.
There are several key suggested uses of a focus research group. (Greenbaum 1998)
1. New product development studies.
2. Positioning studies. (Helps advertisers find ways of talking about a product)
3. Attitude studies
4. Habit and usage. (Why, when, how and where people use a product)
5. Idea Generation. (The group discusses ways to solve a particular problem)
6. EmployeeLearner attitude and motivation studies. (investigates morale)
The Essay on Research Process and Secondary Data
Data previously collected and assembled for some project other than the one at hand {text:list-item} {text:list-item} Can almost always be gathered more quickly and inexpensively than primary data But may be outdated or may not exactly meet the researchers needs Secondary data, or historical data, are data previously collected and assembled for some project other than the one at hand. Secondary ...
Three important aspects of setting up a focus group are the establishment of a research objective, recruitment or participants and the role the moderator will play.
Finally data analysis should be accomplished keeping in mind, “that the researcher is the detective looking for trends and patterns that occur across the various groups. The analysis process begins with assembling the raw materials and getting an overview or total picture of the entire process. The researcher’s role in analysis covers a continuum with assembly of raw data on one extreme and interpretative comments on the other. The analysis process involves consideration of words, tone, context, non-verbals, internal consistency, frequency, extensiveness, intensity, specificity of responses and big ideas. Data reduction strategies are essential in the analysis.”(Krueger 1994)
Experimental research attempts to discover causal relationships by investigating the relationship between a certain action, X, which alone creates the effect Y. For example, turning the volume knob on a stereo clockwise alone causing the sound to get louder.
In this case a causal relationship exists between turning the knob clockwise and an increase in volume; not simply because one caused the other, but because you are certain that nothing else caused the effect.
Experimental research can be divided into five phases:
– Identifying a research problem
– Planning an experimental research study
– Conducting the experiment
– Analyzing the data
– Writing the paper/presentation describing the findings
Other qualitative research techniques include observational research whereby people, their actions and situations are observed. Qualitative observational research describes and classifies various cultural, racial and/or sociological groups by employing interpretive and naturalistic approaches. Observational research relies less on the experimental elements associated with scientific research (reliability and validity ).
Observational research takes place in the subject group’s natural environment, and attempts to be non-manipulative of group behaviors. The purpose is to aim for objectivity taking into account the views of the participants.
Finally “mechanical”, single source observational data is collected through electronic monitoring, i.e., the Neilsen television system. (Armstrong & Kotler, 2001)
Sources:
Greenbaum, Thomas L (1998) The Handbook for Focus Group Research, Sage
Krueger, A Richard (1994) Focus Groups: A Practical Guide for Applied Research, Sage
Armstrong, Philip and Kotler, Philip (2000), Marketing: An Introduction, Prentice Hall
www.rbg.co.uk, The Market Research Society (2001), Market Research: An Essential Business Tool,
www.bizmove.com, Small Business Marketing (2001)
Tapscott, Tom The Digital Economy, 2001
