Market research

Market Research

can be defined as “the systematic gathering, recording and

analysing of all data about problems relating to the marketing of goods and services”

American Marketing Associationl

Market Research

is the process of designing, collecting, analysing, and reporting information that may be used to solve a
specific

marketing problem.”

Marketing Research,

Burns and Bush, 2000

Market Research

is „t

he function that links the consumer, customer, and public to the marketer through information -
information used to identify and define marketing opportunities and problems; generate, refine and
evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a process.”

American Marketing Association While conducting market research can be time consuming and costly,
the cost of research needs to be balanced against the importance of ensuring that your business venture
in a foreign market is potentially going to be successful. Some businesses will conduct research using
their own staff but it is often difficult to be objective about your own product. Experienced Market
Researchers, on the other hand, have the industry networks and systems in place to deliver a
comprehensive, unbiased, and ultimately more useful research paper. Using professional Market
Researchers will depend on the size of the Organisation and the allocation of money to design, collect,
analyse, report and make recommendations.

Types of market research

There are two main types of market research:

Quantitative

- using information such as statistics, ratios and market size This type of research involving the use of
structured questions where the response options have been predetermined and a large number of
responses is required. Examples include; telephone surveys with multiple choice answers (eg.
commissioned), face to face survey interviews on street, written questionnaires with closed ended
questions-Yes or No answers.

Quantitative

research analyses

NUMBERS

Qualitative

- using information gained through human relationships with the market Involves collecting analysing
and interpreting data by observing what people do and say. In this type of Research there is more depth
of understanding about attitudes, interpretations of meanings. Examples include focus groups, and face
to face interviews with open ended questions l

Qualitative

research analyses

WORDS

Quantitative

data is objective, formal, unbiased and in its most common form involves questionnaires of the yes/no
variety.

Quantitative
data, while supplying easily digested facts about your market, does not provide an indepth response to
your product or service.

Qualitative

data, which is subjective, open-ended, and informal, can provide a more complete picture by finding
the reasons

why

your audience does or does not like your product or service. The most common form of qualitative
research is the focus group. All good researchers will combine both kinds of data to provide the most
strategic and significant information in the report.

Questions to ask will focus on the four P's

The four questions which form the basis of any good market research are known as 'the four p's'. These
are:

price

promotion

place (or position) Using the four p's to guide your research will help you to focus the questions you
need to ask: Who will buy your product or service? Where are the customers? How often will they buy?
In what amounts? What styles and colours do they like? What sizes are needed? While long-established
businesses can call on experience and historical trends which they have charted over many years, start-
ups businesses need to answer these questions before they embark on a marketing strategy. But even
established operations need to analyse their products and markets regularly and cannot rely on
historical data alone to drive their marketing strategies.

Six steps in market research

A common and effective method for conducting market research uses these six steps:

1.

Define the problem.

This is the most important step and it is vital to document the needs, preferences and feelings of the
market as accurately as possible. state the nature of the problem and the terms of reference clearly and
accurately Define any associated issues e.g. challenges in the marketplace, specific wants, needs, likes
and dislikes of prospective customers Devise a set of market research questions and ensure that the
parameters of the results are defined and agreed upon.

2. Make a preliminary investigation

Typically this stage uses desk research where other studies and data are analysed and other experts are
consulted for their opinion in order to focus the enquiry. the definition is tested and, possibly, redefined
new and unnoticed issues are defined the actual character of the investigation starts to emerge
theories to be evaluated are formulated

3. Plan the research

At this step you can now select the techniques and the methodology of the study. For example,
techniques such as questionnaire surveys, sales forecasting, market measurements, motivation
research, operations research and factor analysis are devised and applied, ready to receive the data.
specific pieces of information required for the research are defined all available facts are incorporated
appropriate research techniques are finalised the most suitable probability models are selected

4. Gather factual information

This can be done in many ways including: telephone polling mailed questionnaires personal interviews
Which method you select will depend on the depth of information required. Some research areas
require personal interaction, while others may be answered by a simple 'yes' or 'no' answer over the
telephone.

5. Interpret the information The data is studied, computed and segmented according to criteria such as
age, location, or income level. The theories of the study are then tested against the real data, and results
are displayed in a meaningful format (e.g. using diagrams, graphs or written descriptions) so that
conclusions can be drawn.

6. Reach a conclusion

Once the results of your research have been interpreted, your conclusions will look at
recommendations for action or a further need to define and locate any 'missing' information. As part of
your conclusion you will need to: redefine or restate the problem redefine or restate any related issues
clearly state your conclusion, including any actions or recommendations

Research Brief.

A Research Brief is the Document presented by a Marketing person to Management to undertake the
actual Market Research. A Research Brief will vary in presentation format depending on who designs the
Brief.

Define the problem or opportunity projected Target Market/Product is defined.

Exploratory research identified. Current knowledge of Product/Market is highlighted. SWOT included in

the design to reinforce key elements of Company/Team.

Specify research objectives

Decide on the Budget

Prepare a list of required information/indicators to achieve objectives-

KPI’s Key Performance Indicators for Market Research.

Design the data collection method & Research Strategy.

Select the sample size

Organise and carry out the field work

Analyse/Evaluate the data

Formulate report and make recommendations (Throughout the process it is important to identify
potential sources of error, bias and allow for improvement within the design)