![Primary and Secondary Research
Primary research consists
of a collection of original
primary data collected by the
researcher. It is often
undertaken after the
researcher has gained some
insight into the issue by
reviewing secondary research
or by analyzing previously
collected primary data. It can
be accomplished through
various methods, including
questionnaires and telephone
interviews in market
research, or experiments and
direct observations in the
physical sciences, amongst
others.
Secondary research (also
known as desk research) involves
the summary, collation and/or
synthesis of existing research
rather than primary research,
where data is collected from, for
example, research subjects or
experiments.[1]
Sometimes secondary research is
required in the preliminary
stages of research to determine
what is known already and what
new data is required, or to
inform research design. At other
times, it may be the only
research technique used.](https://image.slidesharecdn.com/pobstage2-lecture3students-140909092325-phpapp01/85/POB-stage-2-lecture-3-students-13-320.jpg)
POB stage 2 lecture 3 students
- 1. Principles of Business: Stage 2 Lecture 3: Market Research and Planning
- 2. Overview One of the most important elements of marketing is understanding your customers’ needs and wants. However, in the complex world we live in it is easier said than done. In this lecture, we will explore the world of marketing research and how we can create a consumer insight. Thereafter, we will look at the planning process that enables an organisation to take an insight and turn it into a strategy to be implemented. We will start of by evaluating the role of marketing research and look at the various techniques researchers have at their disposal. Thereafter, we will move onto the role of strategic planning. This will involve looking at the steps organisations take to develop and execute a plan. 2
- 3. Learning Outcomes 3 • Determine the importance of carrying out market research. • Describe the main qualitative and quantitative research methods. • Determine the marketing planning process based on market and customer insight.
- 4. Market Research Money won’t buy you happiness but it will pay the salaries of a large research staff to study the problem. If you steal from one author it’s plagiarism; if you steal from many it’s research.
- 5. Overview of Market Research Marketers make many decisions in their role within a business, and to do so effectively, they need to have the most current and accurate data possible. They analyze demographic data and use the information to create detailed reports. In turn, they use these reports to identify which products and services to focus on, what advertising steps to take, and what decisions should be made—or completely rejected.
- 6. The Importance of Market Research: 5 Reasons Market research centers your business on your consumers. It keeps the business focused on what will make it successful. It allows the business to pursue the most lucrative growth strategy. It keeps you relevant and future focused. Improves decision-making capabilities and reduces risk.
- 7. What is Market Research? Marketing research is defined as the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Validates a hypothesis. View Video: Uncovers insights about a situation. Enables robust decision-making; www.youtube.com/watch?v=cjk0dbB0uMw no assumptions
- 8. Collecting data: What sources would you use? Google Talk to others Collect new insights Expert Opinion Evaluate past data
- 9. Collecting data: Where can you go? View video: https://www.youtube.com/watch?v=Urrc95jrQcU&list=PLR7PU0468uL- 7cZ3IGqyiN-onrRcbksVf
- 10. Market Research System and Process Specialty-line marketing research firms Syndicated-service research firms Custom marketing research firms Source: Bovee, et al 2013
- 11. Define the problem • Define the problem • Specify decision alternatives • State research objectives For example In the highly competitive mobile communications industry, marketing research is focusing on which new services customers might be willing to pay extra for, such as television viewing and music downloading. Source: Kotler, et al 2013
- 12. 12 Develop the research plan Data sources Contact methods Research instruments Research approach Sampling plan Source: Kotler, et al 2013
- 13. Primary and Secondary Research Primary research consists of a collection of original primary data collected by the researcher. It is often undertaken after the researcher has gained some insight into the issue by reviewing secondary research or by analyzing previously collected primary data. It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, amongst others. Secondary research (also known as desk research) involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments.[1] Sometimes secondary research is required in the preliminary stages of research to determine what is known already and what new data is required, or to inform research design. At other times, it may be the only research technique used.
- 14. Primary and Secondary Research Source: Kotler, et al 2013
- 15. Traditional Approach The traditional marketing research approach means that desk research comes first, providing information for the qualitative research, which in turn feeds into the quantitative work. View video: www.youtube.com/watch?v=GQfvocbRV3E
- 16. Research Methods Questionnaires Qualitative Techniques Technological
- 17. Consider open vs closed questions Closed Questions Open Questions Respondents’ answers are limited to a fixed set of responses. Most scales are closed ended. Other types of closed ended questions include: Yes/no questions - The respondent answers with a "yes" or a "no". Multiple choice - The respondent has several option from which to choose. Scaled questions - Responses are graded on a continuum (example : rate the appearance of the product on a scale from 1 to 10, with 10 being the most preferred appearance). No options or predefined categories are suggested. The respondent supplies their own answer without being constrained by a fixed set of possible responses. Examples of types of open ended questions include: Completely unstructured - For example, "What is your opinion on questionnaires?" Word association - Words are presented and the respondent mentions the first word that comes to mind.
- 18. Do’s and Do not’s of Questionnaires • Ensure questions are free of bias • Make questions simple • Make questions specific • Avoid jargon • Avoid sophisticated words • Avoid ambiguous words • Avoid negatives • Avoid hypotheticals • Avoid words that could be misheard • Use response bands • Use mutually exclusive categories • Allow for ‘other’ in fixed response questions Source: Kotler, et al 2013
- 19. 19 Qualitative Research Approaches Observation Ethnographic Focus group Interviews Ethnographic Approach Source: Kotler, et al 2013
- 20. Deep Dive into Ethnography View video: https://www.youtube.com/watch?v=9tHgNXzS2EY
- 21. Technology Based Techniques Galvanometers Tachistoscope Eye cameras Audiometers GPS Source: Kotler, et al 2013
- 22. Lets move into strategic planning
- 23. Planning at 3 levels Strategic planning meshes the company’s capabilities and resources to what is happening in the marketplace. This planning helps the company decide— over the long term—how it wants to act, where it wants to be, and what it wants to do. Without strategic planning, a company would be directionless and ineffective. Operational planning focuses on deciding how the company will implement the functional plans. For example, what are the specifications of the three products that will be developed to support the functional and strategic objectives? Functional planning Each functional area in a company develops its functional plans, not just the marketing department. For example, if one of the strategic plans is to grow revenue by 5% in five years, then a functional plan supporting that goal might be to develop three new products to increase revenue. Consider how you would use market research in each of these areas
- 24. What does it involve?
- 25. Planning in 3 Steps Analyse the market & environment Set the marketing objectives Develop marketing strategies
- 26. Analyse the market and environment Source: Kotler, et al 2013
- 27. Setting Marketing Objectives After performing the SWOT analysis, the next step is to use that information to help set the marketing objectives. Analyzing the implications of the SWOT analysis is what drives the objectives and strategies. After the marketing managers have a good understanding of the internal and external environment, they will begin to develop marketing objectives and strategies. Possible objectives: • Growing market share • Growing revenues or sales • Increasing brand awareness • Developing a certain number of new products • Increasing referral rates • Increasing levels of customer satisfaction Source: Kotler, et al 2013
- 28. Objective Coordination & Budgets Strategic objective coordination Keep in mind that possible objectives must be coordinated with the overall strategic objectives but should be specific to the marketing department. For example, if the strategic objective of the company is to increase profitability by 15% in the next three years, then the marketing department’s objective might be to reduce sales and marketing costs by 5% as a way to help contribute to meeting that goal. Marketing budget As part of this process a marketing budget is also developed, that details revenues, including how many units are forecast to be sold at what price, market shares, distribution, and promotions costs. Source: Kotler, et al 2013
- 30. Essential work for next week • Please consult the OLE for details of: – Essential readings* – Seminar/workshop preparation work* – Recommended further readings – Any additional learning * Essential readings and preparation work must always be completed in time for the next session. 30
- 31. Appendix – Sources for illustrations Slide 4: www.wikipedia.org Slide 5: www.marketingprofs.com Slide 8: www.artslide.com Slide 16: www.emeraldinsight.com
- 32. End of presentation © Pearson College 2013