Chapter 2

MARKETS RESEARCH

Market research involves gathering, presenting and analysing _________________________

information about the marketing and consumption of goods and _________________________
services. Businesses spend money on market research because
_________________________
it helps to reduce the risk of failure. It helps to understand
consumer’s behaviour, risk minimisation, identifying target _________________________
market, Marketing strategies and product development. Market _________________________
research data can be used for the following specific purposes.
_________________________
Identify and anticipate customer needs and wants:
a. Consumer Insights: _________________________
Businesses start by conducting thorough market research. This _________________________
involves collecting data about potential customers, their
_________________________
preferences, and behaviors. Researchers use various methods,
such as surveys, focus groups, and interviews, to gather _________________________
insights. These qualitative data help identify what customers _________________________
truly desire. _________________________
b. Product Features and Attributes:
Once the data is collected, businesses analyze it to pinpoint _________________________
specific product features that matter to consumers. _________________________
The data that market researchers gather need to be as _________________________
comprehensive as possible so that all the needs and wants are
_________________________
identified. This data will be qualitative.
Quantify likely demand: Businesses need to estimate how much _________________________
of a product they can expect to sell in a given market. This _________________________
involves quantifying demand.
_________________________
Quantitative data, such as sales forecasts, provide insights into
potential market acceptance. One reason for this is to help _________________________
determine whether or not a particular product is going to be _________________________
commercially viable. If market research finds that demand is
_________________________
inadequate, a business might cancel the launch of a product.
This also reduces the risk of failure _________________________
Canceling a product launch due to low projected demand can _________________________
save a business significant resources (time, money, effort). _________________________
Assuming that demand is adequate, a business will need to
_________________________
know how much it should produce. It will help to decide about:
 Resource Allocation: How much raw materials/ingredients _________________________
are needed? _________________________
 Labor: Need for additional staff ot number of staff
_________________________
 Equipment and Facilities: Are existing ovens sufficient, or
do they need to invest in more capacity? _________________________
 Logistics: How often should they produce new batches? _________________________
 Inventory Management: Balancing supply and demand
_________________________
efficiently.
  Gain an insight into consumer behaviour: By studying _________________________
patterns, preferences, and habits, companies gain insights
_________________________
into how consumers make decisions.
Benefits of Understanding Behavior are: _________________________
 Meeting Customer Needs: Insights help businesses tailor
_________________________
offerings to match consumer preferences.
 New Opportunities: Behavior patterns reveal gaps or _________________________
unmet needs—potential areas for innovation.
_________________________
 Strategic Planning: Knowing when demand peaks allows
better resource allocation. _________________________
Getting an insight into how people behave will help a business
_________________________
to meet customer needs more effectively This is qualitative data
and might also help them to identify new opportunities. _________________________
Businesses can use a number of different methods to gather _________________________
market research data. _________________________

PRIMARY RESEARCH _________________________

Primary research or field research involves collecting primary _________________________
data. This is information that did not exist before the research _________________________
began. In other words, it has to be collected by the researcher.
_________________________
It can either be carried out by a business itself or by a market
research agency. Because of the high costs of using the services _________________________
of a market research agency, many small businesses choose to _________________________
conduct market research themselves.
_________________________
Most primary information is gathered by asking consumers
questions or by monitoring their behaviour. The most accurate _________________________
way to do this would be to question or observe all consumers of _________________________
a particular product (known as the population).
_________________________
Sample: is the gourp of people who are thought to be
representative of the total market. _________________________
_________________________
METHODS OF PRIMARY RESEARCH: _________________________
Questionnaires/surveys: A questionnaire is a list of written
_________________________
questions. A good questionnaire will have the following
elements: _________________________
 Have a balance of open and closed questions. Closed _________________________
questions allow respondents a limited range of responses.
_________________________
Open questions let people say whatever they want. They
do not have to choose from a list of responses. Open _________________________
questions are best used if there are a large number of _________________________
possible responses. - Contain clear and simple questions.
_________________________
Questions must be clear avoiding the use of jargon, poor
grammar and bad spelling _________________________
 Not contain leading questions. Leading questions are _________________________
those that 'suggest' a certain answer or the response _________________________
might become unreliable
 Short or people will not give up their time to answer them. _________________________
 _________________________
Questionnaires can be used in different situations: _________________________
a. Postal surveys. Questionnaires are sent to people and
_________________________
they are asked to complete them in their own time.
Advantages: _________________________
 Convenience: Postal surveys allow respondents to ___________________
complete questionnaires at their own pace and
_________________________
convenience. No need for face-to-face interactions.
 Wide Reach: They can reach a geographically diverse _________________________
audience, including remote areas. _________________________
 Privacy: Respondents have privacy when filling out the
_________________________
survey.
Challenges: _________________________
 Low Response Rates: Unfortunately, the vast majority _________________________
of postal questionnaires are never returned. People _________________________
get busy, forget, or lose interest.
 Delayed Feedback: Mailing back and forth takes time. _________________________
By the time responses arrive, circumstances might _________________________
have changed. _________________________
 Resource Wastage: As you mentioned, if most
_________________________
questionnaires go unanswered, resources (paper,
postage, effort) are wasted. _________________________
Solution: Offering incentives such as discounts are _________________________
following up by sending reminders.
_________________________
Online surveys.
Advantages: _________________________
 Cost-Effective: No printing or postage costs. _________________________
 Speed: Responses arrive swiftly, allowing real-time
_________________________
adjustments.
 Convenience: Respondents can participate from _________________________
anywhere, anytime. _________________________
Disadvantage: _________________________
 Not user friendly for all.
_________________________
Focus groups or consumer panels: A focus group is where a
number of customers are invited to attend a discussion _________________________
organised by market researchers. The group must be _________________________
representative of the whole population and be prepared to
_________________________
answer detailed questions. Consumer panels are similar to focus
groups except that groups of customers are asked for feedback _________________________
over a period of time. _________________________
Detailed Questions: Participants dive deep into topics. It’s like
_________________________
dissecting a butterfly to understand its intricate patterns.
Cost-Effective: Compared to large-scale surveys, focus groups _________________________
are relatively cost-effective. _________________________
These are helpful as these provide: _________________________
 Rich Insights: Focus groups and panels reveal nuances on
 reasons for the liking and disliking of certain products _________________________
 Behavior Patterns: Panels track behavior over time. _________________________
 Early Warning System: If consumers grumble about a
_________________________
change, businesses can adjust course before it’s too late.
_________________________
Face-to-face/telephone interviews: Businesses may conduct _________________________
face-to-face interviews in the street.
_________________________
 Detailed Information: Face-to-face interviews allow for in- _________________________
depth discussions. If a respondent is confused, the _________________________
interviewer can clarify.
_________________________
 Personal Touch: It’s like having a conversation with a
friend—more engaging than ticking boxes on a form. _________________________
 Cost-Effective: Compared to face-to-face interviews, _________________________
telephone interviews are often cheaper. _________________________
 Problem is that it’s resource-Intensive: Interviewers need
time and effort. Plus, street interviews can be weather- _________________________
dependent. _________________________
_________________________
Product trials/test marketing: Some businesses use product
_________________________
trials to get feedback from customers. This is where consumers
are encouraged to examine, use or test a product before it is _________________________
launched fully into the market. This enables businesses to make _________________________
late adjustments to the product, if necessary, based on the
_________________________
feedback they gather. Test marketing involves selling a new
product in a restricted geographical area to test it before a _________________________
wider launch. After a period of time feedback is gathered from _________________________
customers. The feedback is used to make modifications to the
_________________________
product before the final launch across the whole market. This
reduces the risk of failure. _________________________
_________________________
SECONDARY RESEARCH _________________________
Secondary research or desk research is information that already
_________________________
exists in some form. It can be internal data, from records within
the business, or external data, from sources outside the _________________________
business. _________________________
_________________________
Advantages:
Cost-Effective: Secondary research leverages data that already _________________________
exists reports, studies, databases, and published materials. _________________________
Businesses don’t need to spend resources on new surveys or
_________________________
experiments. It’s like browsing a well-stocked library instead of
writing a new book from scratch. _________________________
Time Efficiency: Secondary data is readily available. No need to _________________________
wait for fieldwork or data collection. Researchers can dive right _________________________
in, saving precious time. It’s like ordering takeout instead of
cooking a five-course meal. _________________________
Broad Coverage: Secondary sources span various topics, _________________________
industries, and regions. Businesses gain insights beyond their
_________________________
specific niche. It’s like having a global news channel instead of
just local headlines. _________________________
_________________________
Disadvantages:
_________________________
Quality of the Secondary Data: Unlike primary research, where
researchers have direct control over data collection, secondary _________________________
data relies on information gathered by [Link] quality of _________________________
secondary research should be carefully evaluated. Sometimes
_________________________
the origin of the information may be suspect.
Outdated Data: Secondary data collected in the past might not _________________________
be relevant for fast-changing markets or dynamic research _________________________
areas. _________________________

METHODS OF SECONDARY RESEARCH _________________________

Websites: A business can carry out secondary research by _________________________
gathering data from the websites of rivals. By analysing the _________________________
websites of competitors, a wide range of information can be
_________________________
gathered very easily and cheaply.
Social media: Few businesses can afford to neglect the role _________________________
social media can play in marketing _________________________
Newspapers/ Magazine, Television/ Radio, Reports
_________________________

Advantages of qualitative data: _________________________

 In-depth Understanding: Qualitative data provides rich, _________________________
detailed insights into people’s thoughts, feelings, and
_________________________
behaviors. This depth of understanding can reveal
underlying motivations and attitudes that quantitative _________________________
data might miss. _________________________
 Flexibility: Qualitative research methods, such as _________________________
interviews and focus groups, allow for flexibility in
_________________________
exploring new topics or questions that arise during the
study. This adaptability can lead to discovering _________________________
unexpected insights. _________________________
 Contextual Relevance: Qualitative data captures the
_________________________
context in which behaviors and attitudes occur, providing
a more holistic view. This context can be crucial for _________________________
understanding the nuances and complexities of the _________________________
subject matter.
_________________________
 Objectivity: Quantitative data is based on numerical
measurements, which reduces the influence of personal _________________________
biases and interpretations. This objectivity makes the data _________________________
more reliable and easier to replicate in future studies. _________________________
 Statistical Analysis: Quantitative data allows for the use of
 statistical tools and techniques to analyze and interpret _________________________
the data. This enables researchers to identify patterns, _________________________
relationships, and trends, and to make generalizations
_________________________
from the sample to the larger population.
_________________________
Advantages of quantitative data: _________________________
_________________________
 Objectivity: Quantitative data is based on numerical
measurements, which reduces the influence of personal _________________________
biases and interpretations. This objectivity makes the data _________________________
more reliable and easier to replicate in future studies.
_____
 Statistical Analysis: Quantitative data allows for the use of
statistical tools and techniques to analyze and interpret _________________________
the data. This enables researchers to identify patterns, _________________________
relationships, and trends, and to make generalizations _________________________
from the sample to the larger population.
_________________________
_________________________
_________________________
_________________________
Disadvantages of using quantitative data:
_________________________
 Lack of Depth: Quantitative data often fails to capture the _________________________
underlying reasons, motivations, and emotions behind the
_________________________
numbers. This can lead to an incomplete understanding of
the subject matter, as it doesn’t provide the context or _________________________
insights that qualitative data might offer. _________________________
 Potential for Misinterpretation: Quantitative data can be
_________________________
easily misinterpreted if not analyzed correctly. For
example, correlation does not imply causation, and _________________________
without proper statistical analysis, one might draw _________________________
incorrect conclusions from the data. _________________________
_________________________
Random Sample: A random sample is a subset of a larger
population that is chosen purely by chance, with no _________________________
predictability. In other words, each member of the population _________________________
has an equal chance of being selected for the sample.
_________________________
Advantages of using a random sample:
 Reduced Bias: Random sampling ensures that every _________________________
member of the population has an equal chance of being _________________________
selected. This minimizes the risk of selection bias, leading
_________________________
to more accurate and reliable results.
 Simplicity and Efficiency: Random sampling is _________________________
straightforward to implement and doesn’t require _________________________
extensive knowledge about the population. This makes it _________________________
a practical and efficient method for gathering data
 _________________________
Disadvantages of using a random sample: _________________________
_________________________
 Impractical for Large Populations: When dealing with a
large population, obtaining a complete list of all members _________________________
can be challenging and time-consuming. This makes _________________________
random sampling less practical and more resource-
_________________________
intensive.
_________________________
 Risk of Underrepresentation: Random sampling might not _________________________
adequately represent minority subgroups within the
_________________________
population. If the sample size is not large enough, these
subgroups may be underrepresented, leading to biased _________________________
results _________________________
_________________________
Quota sampling: In quota sampling, participants are selected
based on specific quotas set by the researcher. This selection is _________________________
non-random and often based on convenience or judgment _________________________
_________________________
_________________________
________
Advantages
 Time and Cost Efficiency: Quota sampling is generally
quicker and less expensive compared to probability
sampling methods. It doesn’t require a complete list of the
population, making it easier to implement.

 Ensures Representation of Subgroups: By setting quotas

for specific subgroups, researchers can ensure that these
groups are adequately represented in the sample. This
can be particularly useful when studying diverse
populations

Disadvantages
 Risk of Bias: Since quota sampling does not involve
random selection, there is a higher risk of selection bias.
The researcher might consciously or unconsciously select
participants who are more accessible or cooperative.

 Limited Generalizability: The results from quota sampling

cannot be generalized to the entire population because
the sample is not randomly selected. This limits the ability
to make broader inferences from the data
Stratified Sample:
Random Selection: In stratified sampling, the population is
divided into distinct subgroups (strata), and a random sample is
drawn from each subgroup. This ensures that each subgroup is
proportionally represented.
Probability Sampling: Stratified sampling is a probability
sampling method, meaning every member of the population has
a known, non-zero chance of being selected
Advantages
 Increased Precision: Stratified sampling ensures that all
subgroups within a population are represented, leading to
more precise and reliable estimates. This method reduces
sampling error compared to simple random sampling.
 Enhanced Comparability: By dividing the population into
strata and sampling from each, researchers can make
more accurate comparisons between different subgroups.
This is particularly useful when studying diverse
populations.
Disadvantages
 Complexity and Time-Consuming: Stratified sampling
requires detailed knowledge of the population to create
strata and can be more complex and time-consuming to
implement. It involves additional steps compared to
simpler sampling methods3.
 Difficulty in Stratification: If the population cannot be
easily divided into distinct strata, or if the strata are not
mutually exclusive, it can be challenging to apply this
method effectively. Misclassification can lead to biased
results.