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4.4 MARKET RESEARCH (How organisations carry out market research ?…

- - - - SURVEYS
        
        detailed study of a market or geographical area to gather data on attitudes, impressions, opinions and satisfaction levels of products or businesses, by asking a section of the population
        
        Questionnaire design
        
        open questions
        
        those that invite a wide-ranging or imaginative response
        
        closed questions
        
        questions to which a limited number of preset answers is offered
      - INTERVIEWS
      - FOCUS GROUPS
        
        a group of people who are asked about their attitude towards a product, service, advertisement or new style of packaging
      - OBSERVATIONS
        
        a qualitative method of collecting and analysing information obtained through directly or indirectly watching and observing others in business environments
      - TEST MARKETING
        
        marketing a new product in a geographical region before a full-scale launch
    - - ADVANTAGES
        
        Up to date
        
        relevant
        
        collected data for a specific purpose
        
        directly addresses the questions the business wants answer to
        
        confidential-no other business has access to this data
      - DISADVANTAGES
        
        costly
        
        time-consuming
        
        doubts over accuracy and validity
  - - - MARKET INTELLIGENCE ANALYSIS REPORTS
      - ACADEMIC JOURNALS
      - GOVERNMENT PUBLICATIONS
      - LOCAL LIBRARIES AND LOCAL GOVERNMENT OFFICES
      - TRADE ORGANISATIONS
      - MEDIA REPORTS AND SPECIALIST PUBLICATIONS
      - INTERNAL COMPANY RECORDS
      - THROUGH INTERNET
    - - Advantages
        
        cheaper and faster
        
        range of sources
        
        insight to trends
      - Disadvantages
        
        may become obsolete or out of date quickly
        
        may be in an inappropriate format
        
        partial information
        
        widely available to competitors
  - - - used to get feedback to understand motivation, behavior, perception through focus groups, expert panels, in-depth interviews of credible individuals
      - explore attitudes and opinions and can be very deeply relevant even if only few are interviewed
      - can only give an indication and does not have statistical relevance
      - relatively inexpensive but harder to analyze, more time consuming, and results are subject to bias or skill or interviewer
  - - - used to get statistical data from total (for figure) or representative sample (for opinion, decisions), using interviews that have closed questions or use ranking or sliding scales
      - quantitative can only ask factual answers but may not reveal reasons why
      - a larger representative sample is needed and must be designed well so it ends up more costly to undertake
- - - - quota sampling
        
        gathering data from a group chosen out of a specific sub-group, e.g. a researcher might ask 100 individuals between the ages of 20 and 30 years
        
        sort by mutual characteristics, its chosen sampling not random
        
        by age group, gender or interest, job
        
        specific, target market
        
        does not represent majority population
      - random sampling
        
        every member of the target population has an equal chance of being selected
        
        minimize bias
        
        time consuming
        
        generalized to the whole population
      - stratified sampling
        
        this draws a sample from a specified sub-group or segment of the population and uses random sampling to select an appropriate number from each stratum
        
        decide the number of samples you want
        
        identify the number of members in each layer
        
        of samples to be taken from a layer is calculated
        
        total of samples divided by total population *number of members
      - cluster sampling
        
        using one or a number of specific groups to draw samples from and not selecting from the whole population, e.g. using one town or region
      - snowball sampling
        
        using existing members of a sample study group to recruit further participants through their acquaintances
      - convenience sampling
        
        drawing representative selection of people because of the ease of their volunteering or selecting people because of their availability or easy access