Market Research

o PRIMARY RESEARCH
o SECONDARY RESEARCH
 Marketing Research Defined

• Market Research is process of gathering And

analyzing Data/Information

• The systematic and objective process of

generating information for aid in making
marketing decisions
• the action or activity of gathering information
about consumers' needs and preferences.
Primary Research
 Primary Research INFO

 Primary Research
 First hand information
 Expensive to collect, analyze and evaluate
 Can be highly focused and relevant
 Care needs to be taken with the approach and
methodology to ensure accuracy
 Types of question – closed – limited information gained;
open – useful information but difficult to analyze
 Secondary Research INFO

 Data gathered and recorded by someone else prior to

and for a purpose other than the current project.
 Is often:
 Historical
 Already assembled
 Needs no access to subjects
 Sampling Method

 Random Samples – equal chance of anyone being picked

 May select those not in the target group – indiscriminate
 Sample sizes may need to be large
to be representative
 Can be very expensive
 Quota Sampling
 Again – by segment
 Not randomly selected
 Specific number on each segment are interviewed, etc.
 May not be fully representative
 Cheaper method
Advantages of Market Research

 Helps focus attention on objectives

 Aids forecasting, planning and strategic development
 May help to reduce risk of new product development
 Communicates image, vision, etc.
 Globalization makes market information valuable (HSBC
adverts!!)
Disadvantages Of Market Research

 Information only as good

as the methodology used
 Can be inaccurate or unreliable
 Results may not be what the business wants to hear!
 May stifle initiative and ‘gut feeling’
 Always a problem that we may never know enough to
be sure!
Coca-Cola Lost Millions Because of This Market Research
Mistake

 In the mid-1980s, the Coca-Cola Company made a decision to introduce a new

beverage product (Hartley, 1995, pp. 129–145).
 The company had evidence that taste was the single most important cause of
Coke’s decline in the market share in the late 1970s and early 1980s.
 A new product dubbed “New Coke” was developed that was sweeter than the
original-formula Coke.
 Almost 200,000 blind product taste tests were conducted in the United States, and
more than one-half of the participants favored New Coke over both the original
formula and Pepsi.
 The new product was introduced and the original formula was withdrawn from the
market. This turned out to be a big mistake! Eventually, the company reintroduced
the original formula as Coke Classic and tried to market the two products
simultaneously.
 Ultimately, New Coke was withdrawn from the market.
 External Resources

 Government Statistics (ONS)

 EU - Euro Stat
 Trade publications
 Commercial Data - Gallup, Mintel, etc.
 Household Expenditure Survey
 Magazine surveys
 Other firms’ research
 Research documents – publications, journals, etc.