Marketing Research and Planning

Market research:
Market research is important for every business .It represents the information that is it
used to identify and to hold marketing. So they can see which products are available on
the stock market.
Market research is market studies which help decision making of marketing. This study
includes the research of the current market, product research and consumer research.
Market research used by an organisation are: primary research and secondary research.

Primary research:
Primary research represents the methods of research used by the company to evaluate the
market. This means that the primary data is obtained directly by the company through the
use of surveys, interviews, focus groups, etc. Primary research is more costly than
secondary research, because it requires the company itself to do the evaluations. Primary
research can be qualitative and quantitative and they are sometimes obtained through
consumer's reviews. .
Primary research can be internal or external. The internal research can be obtained by a
company through interviewing their own employees and ask for their opinion about the
products and services that organisation offers.

Observation:
Observation generally involves watching how people or consumers behave in their
natural setting. These observations can be done in person or mechanically and can be
very effective for gathering primary data. There are two major observation techniques or
research methods used in primary market research, and they are observation through
interaction and communication with the subject and observation through no interaction
and communication with the subject. This form of research method comes under the
quantitative primary research since through it. Researchers evaluate or measure the
behaviour of the respondents or the users in general. Observation is done by monitoring
some specific behaviour of the customers. An advantage for observation will be that the
research may not be able to ask the questions they want to ask, as they may risk
uncovering who they actually are. A disadvantage will be that the participants behave as
they normally do, so suggestion is valid.

Experimentation:
This involves using a new approach, new strategy or new product at a small selection of
sites for a set period of time. The results are closely monitored and used to design future
strategy and products. This method of primary research involves scientific tests where
hypotheses and variables, etc. are used. This is a quantitative type of market research
which may either be controlled out in the field or within controlled environments. In
order to understand this form of research, here is an example that you can refer to: A food
product company created 3 different food packaging styles and then sold the products to
different consumers. After a limited period of time, it analysed the sales and came to a
conclusion about the preferred packaging style or design. An advantage for
experimentation is a high level of control .This because the people have very high level
of control over their variables. A disadvantage for experimentation will be the fake
situations. When peoples have control over their variables, it can be possible that the data
to be false and to not correspond with results of researchers.
Surveys/Questionnaire:
Another superb and highly effective way to conduct primary market research is through
surveys and questionnaires. One of the most common examples of this research method is
the feedback form given to customers at the time of billing at a restaurant. It is a
straightforward method of knowing whether or not the customer is satisfied with the
businesss existing services and products or what kind of changes would the consumer
like to see. Surveys are also conducted in the form of web questionnaires these days that
enable businesses to collect a lot of feedback and then analyze it for further
administration. An advantage will be that it is relatively easy to manage .A disadvantage
will be that the respondents may not feel encouraged to provide accurate answers.
Face to face:
This is one of the most efficient methods through the peoples can interacting direct and
that the researcher will be able to gather information in detail and will be able to assess
the response in detail. Through this method they can be able to observe the reaction and
body language of customers.
Postal:
This method can be the cheapest method of collecting data. A covering letter and a
stamped addressed envelope should accompany the questionnaire to encourage
completion. It is usual to send a follow up letter and a duplicate questionnaire after a
period of time has lapsed without a response. The main problem with postal
questionnaires is the non-response rate that is typically much higher than with other
methods of inquiry. There may also be problems if respondents misunderstand questions
that cannot then be explained as in a personal interview.

Email:
Mail surveys are a quantitative marketing research data collection method in which
respondents complete questionnaires and return them via the mail. The costs for mail
surveys tend to be lower than those for telephone surveys, and mail surveys are a good
strategy for obtaining feedback from people who are dissatisfied with a service or have
strong concerns. The main disadvantages of mail surveys are the possibility of bias due to
response rates, which are typically very low for mail surveys and the lower quality of
information collected, since people tend to avoid open-ended questions or open e-mails
from unknown sources.
Telephone:
This method does allow a large number of interviews to be conducted in a short period of
time, without the interviewer having to travel. The cost per interview is low and the
sample can be spread out nationwide. However, it is likely that only a short questionnaire
can be used in comparison with the personal interview method. Response rates also tend
to be lower.
E-marketing research:
These are becoming increasingly common as more and more organisations are using the
Internet as a means of communicating with their consumers. The main advantage to the
firm is that they are cheap to set up and run. The disadvantages of Internet surveys are
similar to those of postal surveys, with the additional problem that respondents need to be
able to access the Internet in the first.
Focus groups:
A group of people are invited to join a discussion about a particular subject. The group
will be usually be allocated a set time to discuss each topic. The aim of the focus group is
to produce opinions and attitude on the topic being discussed. One of the main ways used
to conduct primary market research is through focus groups. This method involves
getting a group of people in a room or a place and asking them insightful questions
regarding the product, its development, their preferences, and feedback, etc. These types
of focus groups can be run or conducted at any location feasible for the company or
business. These days, with advancements in technology and the internet, it is possible to
conduct them virtually as well, through the method of video conferencing. But the main
thing here is that the groups of people brought together have something in common, for
example, either they should belong to the same age group, the same gender and so on.
This division of the group or the selection process must depend on the audience targeted
or the product of service of the company. Participants in such focus groups are then
compensated by either free coupons, vouchers, gifts or money, etc. Focus groups fall
under the qualitative research method and help businesses know a lot about customer or
market trends. A focus group is a useful method that can be used to measure the reaction

of customers to a companys new product or to the companys strategies. Focus groups

usually provide immediate ideas for the improvement of particular products or concepts.
They also help identify the product requirements of end-user as well as the other needs
not addressed by the company and its competitors. In addition, focus groups provide
insights on the current position of the companys competitors in the mind of the customer,
as well as measuring the reaction of customers to a products design, packaging, price and
message. On the other hand, compared to individual interviews, focus groups are not as
efficient in covering maximum depth on a particular issue. A particular disadvantage of a
focus group is the possibility that the members may not express their honest and personal
opinions about the topic at hand. Compared with surveys and questionnaires, focus
groups are much more expensive to execute. Usually, each participant will have to be
compensated in cash or in kind.
Panels:
A market research panel is a group of recruited survey respondents who have agreed to
take part in surveys and/or other market research. This method is qualitative as the
members of the panel offer professional advice and opinions. Panel is an external source
of information as the professional come from outside the company. Panels use random
consumers, recruited to participate in a variety of projects. Consumers are screened based
on their usage behaviorand you can ask them anything with quick turnaround. A
company can use them quickly and efficiently. However, they sometimes may not give
the company much quality higher than a focus group.

Field trials:
This involves using a new approach, new strategy or new product at a small selection of
sites for a set period of time. The results are closely monitored and used to design future
strategy and products. This method of primary research involves scientific tests where
hypotheses and variables, etc. are used. This is a quantitative type of market research
which may either be controlled out in the field or within controlled environments. In
order to understand this form of research, here is an example that you can refer to: A food
product company created 3 different food packaging styles and then sold the products to
different consumers. After a limited period of time, it analysed the sales and came to a
conclusion about the preferred packaging style or design. The first benefit of field trials is
that many businesses are investing more and more in market research to test whether the
products and services they are developing are in demand. This research also allows
companies to further develop the products and services to meet the needs of customers on
areas where improvement is needed and getting suggestions on where they need to
improve. The field trials also allow businesses to focus in on their target market without
getting data from members outside of the target group. However, market researchers must
be aware of the market that they are analyzing, and whether others outside of the target
market are participating in the analysis.

Internal Secondary research:

Data Records:
Companies can choose to use an internal marketing research department to conduct
surveys, polls, focus groups and other market research activities. Therefore, they keep an
impressive amount of data about customers and their purchasing habits.
Companies using an internal data records system have the ability to modify research
during the course of the investigation. Internal marketing records staff can also move at
the pace set by business needs. Costs, expenses and resources can be tightly monitored
and controlled when such a data record system is kept by a company. However, limited
resources and employee knowledge gaps may hamper the effectiveness and thoroughness
of in-house research efforts.
Website monitoring:
Many companies nowadays sell their products online. As a result they must gather much
information about their possible customer as a quantitative method of research. They
have to keep their eyes open on various websites, search engines and online competitors.
The first and perhaps most obvious advantage of a businesses using website for selling
their products is the potential for reaching a wider audience. The internet is used by
literally millions of people, all of them are looking for something and some of them are
potential customers. However, the information on a companys website might be
unreliable if not updated on a regular basis.
E-transactions :
Electronic commerce or in short e-commerce, refers to business activities like selling and
purchasing of products and services carried out over electronic systems like the Internet
and computer networks. As a both qualitative and quantitative method of market research,
e-commerce enables a business to reach the global market. With the help of electronic
commerce, even small enterprises can access the global market for selling and purchasing
products and services. However, one important disadvantage of e-commerce is that the
Internet has still not touched the lives of a great number of people, either due to the lack
of knowledge or trust. A large number of people do not use the Internet for any kind of
financial transaction.
Accounting records:
This quantitative internal method deals with the financial records of a company. They
show how the money value of their sales and what expenses they have. From this
information, a company can track the best selling products or the most cost-expensive
and as a consequence least selling. It very useful for a company as they can make further
future decision according to this information on the condition that the records are
accurate and updated.

External secondary research :

Internet :
Today the Internet is the most accessed source of information on planet so business can
take great advantage of this fact. Market research on the internet can be both qualitative
and quantitative as long as market researches take care what sources of information from
the virtual space they gather, as anyone is aware this is not a perfectly accurate source of
data collection.
Government statistics:
Government statistics represents statistics which are published by government agencies
or by international organisations. They offer quantitative information and qualitative
information about economic and social development, living condition, health, education
and they also offer information about environment. Government statistics make
information on economic and social development accessible to the public, allowing the
impact of government policies to be assessed, thus improving accountability. Official
statistics are intended for a wide range of users including governments research
institutions, professional statisticians, journalists and the media, businesses, educational
institutions and the general public. There are three types of users: those with a general
interest, business interest or research interest. The information from this source is reliable
and cost free.
Trade journals :
Newspapers and magazines that deal with economics and business provide a great deal of
useful information for market researchers. This source is not expensive and benefits of
the help of many business experts. Many companies find great help in trade journals
when it comes to make decisions on trends, products or services to market.
Company reports:
All companies create a business report on regular basis, semester or annual. Such a report
contains expenses, profits, and the general situation of the company. It is cheap and very
useful for a company in making decisions, especially when they take into consideration
the competitors reports. However, similar to accounting reports, these reports must be
accurate and updated.
Secondary research:
Secondary research is an analysis made by someone else meaning that the business is not
the one who is carrying out the research .These research can be either internal , either
external .Internal research represents the use of the information that already exist in the
company such as the number of sales or the number of returned products. Some examples

for internal can be balance sheets, profit and loss account, sales figures. External
research represents the use of the information that does not belong to the company and
which is gathered from an external source like the government newspaper, trade journals
or even competitors. Some examples for external source can be government sources, the
internet and competitor data.
Qualitative research:
Qualitative research or qualitative market research is a kind of a research method which
mainly takes into account the opinions and feelings of a customer as far as a businesss
products and services are concerned. This type of research tries to get behind the
customers mind to fathom what they see lacking or whether they truly like the product or
not. Some common examples of qualitative research work include doing face to face
interviews, being part of focus groups, etc.

Quantitative research:
Quantitative market research is a kind of market research work that is based on hard facts
and statistical data rather than the feelings and opinions of the customers or consumers.
This type of research can prove useful both in terms of primary market research and
secondary market research. Some of the common examples of quantitative research
include exit surveys, questionnaires, on-site fieldwork and the shopping bag survey. In
fact, another example of quantitative research includes researching of the previously
existing financial reports, research papers. This type of research comes out with a wide
range of statistics and helps to find out the size of the market as well.