Market Research Notes

• Marketing research concerns specific ad hoc enquiries into problems and marketing activities to discover new information so as to guide marketing decisions.

• It is the systematic design, collection, interpretation and reporting of information to help marketers solve specific marketing problems and take advantage of marketing opportunities.

• It is a process of gathering information not currently available to the decision makers.

Some Marketing Research Facts

• 81% of research is survey work for quantitative studies.

• Telephone interviewing is primarily used for quantitative research but not exclusively.

• Qualitative research is done through focus groups and in depth interviews and accounts for 40 million turnover.

• In the UK per year there are (Market Research Society, London):

  • 17.5 million total interviews.

  • 8 million face to face interviews.

  • 4.5 million postal/self-completion surveys.

  • 4.5 million telephone surveys.

• The online research market is growing rapidly.

Why Conduct Market Research?

• Feedback:

  • To research a situation in order to decrease risks and improve effectiveness.

• Understanding:

  • Research in order to learn about the attitudes and behaviours of large groups of people in a diverse population.

• Decision Quality:

  • Decisions based on good research should be of higher quality than those based solely on judgement.

Market Research & Demand

• Existing demand = need identified and currently satisfied.

• Latent demand = need identified but not satisfied.

• Incipient demand = need unidentified and not satisfied.

• It would be impossible to research a need of which the consumer is unaware

The Process

• The market research process has eight stages:

2. Problem definition

3. Develop hypothesis

4. Develop sampling plan

5. Design the instrument to collect data

6. Collect data

7. Analyse the data

8. Interpret the results

9. Communicate the results

• Marketing research professionals often refer to the ‘funnel’:

  1. Desk research – understanding

  2. Qualitative research – hypothesis generation

  3. Quantification – hypothesis testing and validation

  4. Qualitative research – confirm recommendations

• There are four phases in the process:

  1. Exploration

  2. Development

  3. Decision making

  4. Assessment

The Pitfalls

• It is deceptively easy.

• There is good research and bad research.

• It takes time and resources.

• There are three important questions that market researchers must ask:

  1. Is more information needed?

  2. Is the decision contingent on the research outcome?

  3. Can the results be used?

Primary vs. Secondary

Examination of Key Techniques

1. Postal Surveys

• Questionnaires are sent to respondents who are encouraged to complete and return them.

• They are often used when respondents are spread over a wide area or when survey funds are limited.

• They are inexpensive, simple and relatively quick.

• Misunderstanding, inaccurate responses, sampling errors and low responses are the downfalls of this technique.

• In order to combat these incentives are needed, and possibly follow ups.

2. Focus Groups

• The moderator leads a discussion which is not too highly structured which ultimately focuses in on a specific market/company/brand etc.

• This is done in order to determine motives/perceptions/feelings that consumers hold.

• These focus groups are conducted when group behaviour and creative interaction is desired.

• The moderators must understand clinical psychology and be highly trained.

• Focus groups generally have 6-10 people and are generally single sex. The session lasts 1.5-2.5 hours and is taped.

• Generally the running order will be:

  • Recruitment questionnaire.

  • Convening the group.

  • Warm up chat.

  • Addressing the topic.

  • Concept description.

  • Marketing mix issues.

• Advantages of focus groups:

  • It is one of the few techniques that enables marketers to really examine motives/attitudes/perceptions.

  • They are quick to set up and complete (2-3 weeks).

  • They are cost effective (1,400 per group).

  • Good moderation and viewing facilities are now easy to come by.

  • They can be observed by clients and the creative team.

  • It has a flexible format with a multitude of applications.

• Disadvantages of focus groups:

  • Inappropriate mix of individuals.

  • Wrong recruitment of consumers.

  • Small sample sizes.

  • Moderator bias.

  • Difficult to conduct in business to business markets.

3. Depth Interviews

• In marketing research, interviews last from a few minutes to several hours.

• Depth interviews refer to the longer interviews in which the researcher attempts to encourage the subject to talk freely about anything at all initially in order to generate a relaxed atmosphere.

• Then more specific market/product/brand questions may be introduced.

• They are used to study motives and usage.

• The general initial discussion enables the researcher to profile the lifestyle and characteristics of the subject.

• These can be conducted anywhere at any time.

• Advantages of depth interviews:

  • Flexibility.

  • Use of stimuli such as pictures and diagrams.

  • Rapport can be built up.

  • The interviews can be followed up to explore further issues.

  • Psychological testing can be incorporated.

  • Respondents can be carefully selected and non-response reasons can...

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