Postal interviews
Postal surveys are a cheap method of interviewing, which is why almost a quarter of all surveys carried out use this method. They do however low response rates. Often fewer than 10% of questionnaires sent out are returned.
Observation
This involves looking at how consumers behave in the shopping environment. Information like this can help marketers make decisions about packaging or influence the choice of point of sale materials designed to attract the attention of shoppers. It may also help to make decisions about where to place particular products in a shop.
Questionnaire
Many of the market research methods described above depend on the use of a questionnaire. A questionnaire is a systematic list of questions designed to obtain information from people about:
- Specific events
- Their attitudes
- Their values
- Their beliefs
The quality of the information obtained from the questionnaire is inextricably linked with the survey. A good questionnaire will result in a smooth interview, giving the interviewer a precise format to follow and ensuring he or she obtains exactly the information required in a format that is easy for the researcher to analyse.
Although it is easy to make up questions, it is very difficult to produce a good questionnaire.
A good questionnaire will do the following:
- Ask questions that relate directly to information needs.
- Not ask too many questions.
- Not ask leading or intimate questions.
- Fit questions into a logical order.
- Use language appropriate to the target audience.
- Not use questions that are confusing.
- Avoid questions relating to sexuality, politics and religion unless they are relevant.
Surveys and sampling
Surveys are one of the most common ways used to collect market research information. There are two types of surveys:
A census- involves questioning every supplier or customer within a particular market.
Sample- involves questioning a selection of respondents from the target market.
There are a number of different ways of choosing a sample.
Random sampling
With this method, individuals and organisations are selected from a ‘sampling frame’, which is simply a list of all the members of the market or population to be surveyed. There are three main forms of random sampling:
-
Simple random sampling- allows the researcher to choose the size of the sample required and then to pick the sample on a purely random basis.
-
Systematic sampling- involves selecting items from the list at regular intervals after choosing a random starting point.
-
Stratified random sampling- it weights the sample on the basis of the importance of each group of customers in the market
Cluster sampling
With this method, the population/customers are divided into small areas but, instead of sampling from a random selection of these areas, sampling is carried out in few areas that are considered to be typical of the market in question.
Quota sampling
With quota sampling interviews are given instructions as to the number of people to interview with certain characteristics.
Convenience sampling
This involves gathering information from anyone available for the interviewer to survey, no matter what his or her background.
Judgement sampling
This involves the interviewer selecting respondents using his or her own judgement that they seemed to be, and looked representative of, the group of customers in the market being researched.
Pilots
A pilot ‘is a small scale experiment which is undertaken before something is introduced on a large scale’. A pilot is useful in identifying any major problems with the questionnaire. It will also include whether the questionnaire will meet the research objectives.
Field trials
Selected consumers may be asked to test a product prior to its launch. The purpose of this is to ensure the product performs according to expectations, and it provides an opportunity for problems to be ironed out.
Secondary research
Secondary marketing information can be obtained from both internal and external sources.
Internal sources
Internal information is information already held within the organisation, more often than not in databases. A database is a large amount of information stored in such a way that it can easily be found, processed and updated.
External sources
External data exists in the form of published materials, collected by someone else. It can give a broader dimension to data previously collected.
Two examples of useful external sources are:
-
Domestic socioeconomic data- customers are classified according to their house type, the assumption being that a certain lifestyle is associated with that type of house.
-
Industrial classification- organisational customers can be classified according to the nature of their activities. Certain types of organisations can then be expected to have predictable demands for services.
External information can complement an organisation’s own information by permitting direct comparison with competitors, by putting the organisation’s performance within the context of the economy as a whole, and by identifying markets that offer potential.
The media
Another useful source of information is the media. Media sources normally include:
-
Newspapers- broadsheets such as The Times and The Financial Times.
-
Magazines and trade journals- the obvious ones are The Economist and The Grocer.
-
TV and radio- these include specialist news and current affairs programmes.
-
Teletext- this provides a wide variety of current information covering many topics.
Directories
There are many business directories that provide general information about industries and markets.
Trade associations
Trade associations publish information for their members concerning their particular fields, and there are associations for almost all trades.
The internet
The internet has rapidly become an invaluable research tool, providing a rich resource for information from a multitude of resources.
Market research companies
There are a number of commercial market research companies offering a range of services and selling data they acquire from a variety of sources. For example, Mintel is a commercial research organisation which, in return for a fee, provides a monthly journal containing reports on consumer markets.
Marketing databases
A database is a large number of files or a large file structured in such a way that the data can be processed by different users in a large number of different ways. Databases may help managers to make the following decisions:
- Product decisions
- Pricing decisions
- Distribution decisions
- Promotional decisions
Profit opportunities
As products go through their product life cycle the profitability of different products changes. Marketing analysis helps to direct an organisation towards those activities where profitability and other business objectives can best be satisfied.