Marketing (Market research) Chapter 2 (Process (Management problem…
Marketing (Market research) Chapter 2
Process of collecting, recording and analysing data about customers and competitors in the market.
Reduce risks associated with new product launches. Predict future demand changes. Explain patterns in sales of existing products and market trends. Assess the most favoured designs, styles, promotions and packages for a product.
Management problem identification
To have a clear idea of the purpose of market research for a business. To identify the problem that needs investigation.
Set objectives in order to gather all information needed to solve a problem.
Sources of data (primary or secondary)
Primary collects firs-hand data. Secondary collects second-hand data researched by other firms.
Sources of secondary data: Government publications, local libraries, trade organisations, market intelligence reports, newspaper reports, internal company records, the internet.
Methods of primary research: Quantitative and Qualitative. Qualitative: Why consumers will or will not buy certain products. Quantitative: Research that leads to numerical results that can be statistically analysed.
Quantitative: Observation and recording, test marketing, consumer surveys and focus groups.
: Up-to-date therefore more accurate, more relevant to a business, no other business has access to this data.
: Costly, time-consuming, doubts over accuracy.
: Every member of the target population has an equal chance of being selected.
: Draws a sample from a segment and uses random sampling to select and appropriate number from each stratum.
: Selects an appropriate number of people from each stratum.
Sampling involves biased selection and may lead to erroneous conclusions.
Market research data analysis
Tables, pie graphs, line graphs, bar charts, histograms.
Averages: Arithmetic mean, mode, median, frequency data, grouped frequency data, range, inter-quartile range.