Keep an eye on the market Even after you begin selling, keep an eye on what is selling well and what is not selling for you. Perhaps you should drop the products that are not selling and concentrate on the ones that are? Ask your existing customers if there is anything else that they would like to buy from you.
One is to design and implement a study with in-house staff; the other is to use an outside market research firm. Outline the basic steps of the market research process. The process of collecting data and converting it into useful information includes basic 8 steps:.
Formal research is often undertaken after a problem or opportunity has been identified. Marketers must be aware of the impact that SRC and other cross-cultural assumptions can have. Such awareness can have positive effects: Choose Unit of Analysis. The next step involves the need to identify what part s of the world the company should be doing business and finding out as much as possible about the business environment in the area s identified.
The unit of analysis may be a single country; it may be a region such as Europe or South America, or it may be global see Table Countrywide data are not required for all market entry decisions. Rather, a specific city, state, or province may be the relevant unit of analysis.
The first task at this stage is to answer several questions regarding the availability of data. What type of data should be gathered? Can secondary data — for example data available in company files, a library, industry or trade journals, or online be used?? Using data that are readily available saves both money and time.
A low-cost approach to market research and data collection begins with desk research. Secondary sources are a good place to start.
Personal files, company or public libraries, online databases, government census records, and trade associations are just a few of the data sources that can be tapped with minimal effort.
Most countries compile estimates of gross national product GNP , gross domestic product GDP , consumption, investment, government expenditures, and price levels. Demographic data indicating the population size, distribution of population by age category, and rates of population growth are also available.
Many countries have set up Web sites to help small firms find opportunities in world markets. The Statistical Yearbook of the United Nations , contains global data on agriculture, mining, manufacturing, construction, energy production and consumption, internal and external trade, railroad and air transport, wages and prices, health, housing, education, communication infrastructure, and availability of mass communication media.
The Economist and Financial Times compile comprehensive surveys of regional and country markets. Trends in manufacturing production indicate potential markets for companies that supply manufacturing inputs. At the early stages of growth in a country, when per capita incomes are low, manufacturing centers on necessities as food and beverages, textiles, and other forms of light industry.
As incomes rise, the relative importance of these industries declines as heavy industry begins to develop. A word of caution is in order at this point: Remember that data are compiled from various sources, some of which may not be reliable. Even when the sources are reliable, there is likely to be some variability from source to source.
Syndicated studies published by private research companies are another source of secondary data and information. Research requires investment of both money and managerial time, and it is necessary to perform a cost-benefit analysis before proceeding further.
The small markets around the world pose a special problem for the researcher. The relatively low profit potential in smaller markets justifies only modest expenditures for marketing research. It may also be necessary to use inexpensive survey research that sacrifices some elegance or statistical rigor to achieve results within the constraints of the smaller market research budget. Primary data are gathered through original research pertaining to a specific problem when data are not available through published statistics or studies.
Global marketing guru David Arnold offers the following guidelines regarding data gathering:. Next, the decision must be made to use quantitative techniques numerical data that can be subjected to statistical analysis or qualitative techniques non-numerical data. In global market research, it is advisable for the plan to call for a mix of techniques is typically most advisable. For consumer products, qualitative research is especially well suited to accomplish the following tasks:.
The research problem may be more narrowly focused on marketing issues. Existing markets are those in which customer needs are already being served by one or more companies. In many countries, data about the size of existing markets-in terms of dollar volume and unit sales — are readily available. In some countries, however, formal market research is relatively new phenomenon and data are scarce. In such situations, market researchers have two initial objectives:.
To estimate the market size, the level of demand, or the rate of product purchase or consumption. In such situations, and in countries, where such data are not available, researchers must first estimate the market size, the level of demand, or the rate of product purchase or consumption. Potential markets are those where no market currently exists and can be subdivided into.
A latent market is in essence, an undiscovered segment. It is a market in which demand would materialize if an appropriate product were made available. An incipient market is a market that will emerge if a particular economic, demographic, political, or sociocultural trend continues. A company is not likely to succeed if it offers a product in an incipient market before the trends have taken root.
After the trends have had a chance to unfold, the incipient market will become latent and, later, existing. Survey research, interviews, consumer panels, observation, and focus groups are some of the tools used to collect primary market data. Survey research obtains data using a questionnaire distributed by mail, telephone, or in person; a good questionnaire is simple, easy to answer and record, and obtains desired information.
In global marketing research, several survey and design issues arise e. It is important to remember that what is customary in one country may be impossible in others because of infrastructure differences, cultural barriers or other reasons. SRC bias can originate from the cultural background of those designing the questionnaire. A technique known as back translation can help increase comprehension and validity. Back translation requires that, after a questionnaire is translated into a particular target language, it is translated once again into the original by a different translator.
For even greater accuracy, parallel translations — two versions by different translators — can be used as input to the back translation. A consumer panel is a sample of respondents whose behavior is tracked over time. When observation is used as a data collection method, one or more trained observers or a mechanical device such as a video camera watch and record the behavior of actual or prospective buyers.
Companies using observation as a research methodology must be sensitive to public concerns about privacy issues. A second problem with observation is reactivity, which is the tendency of research subjects to behave differently when they know they are under study. The moderator can utilize a number approaches to elicit reactions and responses, including projective techniques, visualization, and role plays. In the projective technique , the researcher presents open ended or ambiguous stimuli to a subject.
Focus group research yields qualitative data that does not lend itself to statistical projection. Such data is extremely valuable in the exploratory phase of a project and is typically used in conjunction with data gathered via observation and other methods.
Market research requires assigning some type of measure, ranking, or interval to a response. To take a simple example of measurement, a nominal scale is used to establish the identity of a survey element. When collecting data, researchers generally cannot administer a survey to every possible person in the designated group. A sample is a selected subset of a population that is representative of the entire population. The results of a nonprobability sample cannot be projected with statistical reliability.
One form of nonprobability sample is a convenience sample — researchers select people who are easy to reach. Although data gathered in this way are not subject to statistical inference, they may be adequate to address the problem. To obtain a quota sample , the researcher divides the population under study into categories; a sample is taken from each category. The term quota refers to the need to make sure that enough people are chosen in each category to reflect the overall makeup of the population.
The data collected up to this point must be subjected to some form of analysis if it to be useful to decision makers. Questionnaires must be coded, and some data adjustment may be required. Data analysis continues with tabulation, that is, the arrangement of data in tabular form. If the researcher is interested in the interaction between variables, interdependence techniques such as factor analysis, cluster analysis, and multidimensional scaling MDS can be used. Factor analysis is used to transform large amounts of data into manageable units see Figure Factor analysis is useful in psychographic segmentation studies.
Cluster analysis allows the researcher to group variables into clusters that maximize within-group similarities and between-group differences. Cluster analysis shares some characteristics of factor analysis: Cluster analysis is well suited to global marketing research because similarities and difference can be established between local, national, and regional markets of the world.
Multidimensional scaling MDS is a technique for creating perceptual maps. MDS is particularly useful when there are many alternatives from which to choose. Dependence techniques assess the interdependence of two or more dependent variables with one or more independent variables. Conjoint analysis is a tool that researchers can use to gain insights into the combination of attributes that will be most attractive to consumers; it is assumed that features affect both perception and preferences.
A common form of comparative analysis is the intracompany cross-national comparison. For example, general market conditions in two or more countries as measured by income, stage of industrialization, or some other indicator may be similar.
If there is a significant discrepancy between per capita sales of a given product in the countries, the marketer might reasonably wonder about it and determine what actions need to be taken. David Arnold notes that there are four possible approaches to forecasting by analogy:.
Market Research. What is Market Research? Types of market research; Market Research Activities You Can Do; Designing Your Questionnaire; SWOT Analysis; Starting. Market Research Activities You Can Do. Examine existing products / services. Look at other similar products / services on the market: Can you learn from them? What do they do well.
conduct market research before or during the life of a product to ensure its success. Give some examples of ways your school or organization has gathered data from its target markets.
This market research activity looks at Primary & Secondary Research.4/4(2). Market Research This is the latest in the series of simplified marketing notes aimed at Learning Support students of GCSE Business Studies. The notes cover the top.
Objective of market research: To transform the research plan into an actionable plan to control drug abuse -To analyse the impact of advertisements on drug abuse -Providing recommendations to mayor based on the research conducted Market research method: Earlier to this research, many other researches were also conducted on Boston’s drug problem. Students explain the four P's of Marketing (product, pricing, promotion, and place) and how they are used in business and in society. They produce the remake of an old audio and visual commercial activity as .