MANAGEMENT OF MARKETING

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MANAGEMENT OF MARKETING

• METHODS OF MARKET RESEARCH

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LEARNING INTENTIONS/SUCCESS CRITERIA

• LEARNING INTENTIONS
• I understand the role of
• market research in the
• marketing activities of an
• organisation.

• SUCCESS CRITERIA
• I can explain WHY organisations would carry out
  market research
• I can describe HOW organisations can carry out
  market research
• I can describe the different types of market
  research that organisations may use
• I can explain why organisations may choose a
  particular type of market research

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EXAMPLE OF POOR MARKET RESEARCH

• http//www.tes.co.uk/teaching-resource/Market-rese
  arch-and-branding-mistakes-6173838/

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WHAT WENT WRONG

• Coca-Cola discovered it was losing out to rival
  Pepsi so it
• introduced New Coke.
• Unfortunately, millions of Americans decided they
  
• hated New Coke and responded to the change in
• formula as if the organisation had killed off a
• beloved member of the family.
• The lessons from Coke's mistake are avoid basing
  decisions on
• biased research, stay close to customers and know
  what makes
• you or your product special.
• SO, LETS SEE HOW MARKET RESEARCH SHOULD BE
  DONE!

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DESK RESEARCH

• Recap
• What is it?
• Give some examples
• Any advantages?
• Any disadvantages?

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DESK RESEARCH

• Desk research involves finding and REUSING
  EXISTING INFORMATION about a market for your
  specific purpose.
• This reused information from desk research is
  known as SECONDARY INFORMATION.
• This type of research therefore DOES NOT INVOLVE
  DIRECT CONTACT WITH CONSUMERS (as it can be done
  by sitting at a desk).

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INTERNAL DESK RESEARCH EXAMPLES

• These are sources of market research information
  from INSIDE of the business.
• They often focus on information about the
  business itself.
• Examples include
• SALES FIGURES
• PROFIT FIGURES
• PRODUCTION FIGURES
• STOCK LEVELS

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EXTERNAL DESK RESEARCH EXAMPLES

• These are sources of market research information
  from OUTSIDE of the business.
• They provide information about what people
  outside of the business think about it and the
  market in general.
• Examples
• GOVERNMENT OR INDUSTRY STATISTICS AND REPORTS eg
  Census
• COMPETITORS BROCHURES AND WEBSITES
• MAGAZINE AND NEWSPAPER ARTICLES

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BENEFITS OF DESK RESEARCH

• Desk research is RELATIVELY CHEAP to collect as
  time and money does not have to be spent
  collecting new information.
• Desk research provides market research
  information RELATIVELY EASILY and QUICKLY as it
  is already available and so time does not have to
  be spent collecting new information.
• The speed with which (especially internet based)
  desk research can provide information means that
  it can provide access to a wide range of both
  INTERNAL (information from inside of the
  business) and EXTERNAL (information from outside
  of the business) market research. This can help
  make sure that decisions are well thought out by
  using a FULL picture of the market.
• It is valuable when quick decisions need to be
  made.

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DRAWBACKS OF DESK RESEARCH

• Desk research uses information that already
  exists and so
• this information may only be able to provide
  BROAD rather than specific market research
  information this may not be very helpful for
  decision making. For example desk research may
  show that sales are falling but not be able to
  explain why.
• this information may be less than useful because
  it has become OUT OF DATE.
• you may not know if it is INACCURATE because you
  did not carry it out.
• if nothing is available on a topic (eg a new
  market) then it will be unable to provide any
  market research.

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Task

• Complete Worksheet 23 Desk Research
• Task

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FIELD RESEARCH

• Recap
• What is it?
• Give some examples
• Any advantages?
• Any disadvantages?

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FIELD RESEARCH

• Field research involves gathering NEW INFORMATION
  about a market for your own specific purpose.
• The information that field research creates is
  known as PRIMARY INFORMATION.
• This type of research therefore does usually
  require DIRECT CONTACT WITH CONSUMERS.

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TYPES OF FIELD RESEARCH

• PERSONAL INTERVIEW
• Here the business uses a face-to-face discussion
  to ask consumers questions
• about what they think about the business and its
  market.
• This is good because
• it allows a 2 way conversation about issues and
  so can clear up any
• misunderstandings and get extra detail to
  answers.
• the information it provides will be of high
  quality.
• The main drawbacks of this method are
• consumers may not have the time to talk or be
  unhappy to do so - this can
• mean it is hard to collect research this
  way.
• It also takes time for staff to do it which costs
  money for wages

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METHODS OF FIELD RESEARCH

• ONLINE SURVEY
• Here the business uses an internet website to ask
  consumers questions
• about what they think about the business and its
  market.
• Consumers can be directed to this website from
  information on texts, emails, receipts
• or the business website.
• This is good because
• it does not require a lot of staff time and wages
  because computers collect or analyse
• the information.
• consumers may be more willing to provide
  information because it is quick and they can
  answer at a time which suits them.
• The main drawback of this method is that it is
  not a 2-way method of communication and
• so it can be hard to clear up any
  misunderstandings or get extra detail.

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METHODS OF FIELD RESEARCH

• TELEPHONE SURVEY
• Here people are contacted by telephone and asked
  to answer
• questions.
• This is good because
• a large number of people from all over the
  country can be contacted
• it is less expensive to carry out than a personal
  interview
• misunderstandings can be cleared up as it is a
  2-way communication.
• The drawbacks are that it is difficult to find a
  suitable time when people
• are willing to answer questions by telephone and
  most people do not
• want to participate in long surveys by telephone.

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METHODS OF FIELD RESEARCH

• POSTAL SURVEY
• Here people are sent a questionnaire by post.
  They will then have to
• complete the questionnaire and send it back to
  the business.
• This is good because
• people can complete the questionnaire at a time
  which suits them
• people can be targeted over a wide geographical
  area
• The drawbacks of this are
• people may just bin the questionnaire
• it takes time to have the questionnaires returned
• the questions may be read differently by
  different people and there is no opportunity for
  clarification.

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METHODS OF FIELD RESEARCH

• HALL TEST
• This involves a product being given to a
  selection of customers to try
• and then getting their feedback on it.
• This is good because the customers can report
  back on their actual
• experience of using the product.
• This is not so good because the customers will
  give their personal
• opinion which can be hard to analyse, or they may
  just tell the business
• what they think they want to hear so as not to
  appear rude.

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METHODS OF FIELD RESEARCH

• FOCUS GROUP
• This involves putting together a group of
  selected customers and
• asking them questions about a product or service
  to stimulate a
• discussion.
• This is good because
• The feelings and views of the people in the group
  can be observed
• Any points of misunderstanding can be clarified
• This is not so good because
• It is time consuming and expensive to carry out
• The sample of people used in the group may not be
  representative of all the potential customers.

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METHODS OF FIELD RESEARCH

• OBSERVATION
• This involves watching customers and recording
  their actions eg how
• many customers visit a business or what their
  reaction to a
• situation is.
• This is good because
• Facts and figures are gathered which are easier
  to analyse than peoples opinions.
• People are not aware they are being observed and
  are therefore more likely to act naturally
• This is not so good because
• There are privacy and ethical issues to consider
  when observing people
• The customers are not asked for reasons for their
  actions.

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METHODS OF FIELD RESEARCH

• EPOS ELECTRONIC POINT OF SALE
• This involves gathering information when
  customers are paying for
• purchases by debit or credit card at the
  checkout.
• This is good because
• Large quantities of information can be gathered
• The information is factual rather than customers
  opinions and so can be easily analysed
• This is not so good because
• It is expensive to purchase an EPOS system,
  especially for a small business
• No opportunity to gather customer opinions.

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METHODS OF FIELD RESEARCH

• SOCIAL NETWORKING SITE
• This involves using sites such as Facebook and
  Twitter to gain
• feedback from people on goods and services and
  their reaction and
• opinion on different issues affecting the
  business.
• This is good because
• Large numbers of people can be reached
• Information can be gathered quickly
• It is a 2-way communication between the business
  and its customers
• This is not so good because
• Customers may not want to join the social
  networking site of the business
• Information put on the sites is not usually
  private and may be viewed by anyone

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METHODS OF FIELD RESEARCH

• COMMENT CARDS
• Here the business uses a card (which is usually
  available at tills,
• service desks or at the point of service eg a
  hotel room or restaurant
• table) to gather comments from consumers about
  the business and its
• market.
• This is good because
• it does not require a lot of staff time and wages
  to collect the information.
• Consumers can also use it at any time so it
  allows a business to collect ongoing research
  easily.
• The main drawback of this method is that it is
  not a 2-way method of
• communication and so it can be hard to clear up
  any
• misunderstandings or get extra detail.

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TASKS

• Complete Worksheet 23 Field Research
• Task and then do Worksheet 24.