The Significance of Market Research

MARKET RESEARCH MARKET RESEARCH

Member introduction : Kevin(q1) Paul(q2) Lawrence(q3) Kieran(q4) Berial(organize edit) Limitation of four questions allow me the honor to do edit as well as organize this presentation. By participating in each ones task and integrating the answers to each question, I can learn more knowledge and do better unite the whole team. This task had me linked our work with the real market state. Understanding problems and investigating data are just like to do market research. Organizing and evaluating everyone's work also seem like market things. Doing my part,I felt very fulfilled and really benefited from it.

1.The purpose of market research Marketing research is a crucial management tool for helping businesses to discover whether or not the product or service that they are providing is actually desired by their customer base. An example of a market research strategy is convening a focus group to determine how a demographic experiences interactions with a company. Market research should be conducted constantly to ensure that the business is still meeting the needs of a changing market.

Significance of Market Research Market research can be broad or narrow in scope. It can encompass determining trends in an entire industry or be as specific as finding out how much people enjoyed a particular product during a short period of time five years previous. Different kinds of market research need to be conducted during different periods in the life cycle of a company and those of a product. During the initial stages of a star- up company, for example, managers will need to discover whether there is an unmet demand for what their company produces and how they will sell it profitably. Function of Market Research Conducting high level market research is more involved than putting in a few search terms through Google and asking family members what they think would make it on the market. It often involves either contracting out to another firm that specializes in research or putting in the time and effort in a business library or using an informational service or database to come up with information relevant to an upcoming project. Companies like Standard and Poor's will conduct business research for a hefty fee depending on how much information is necessary.

Considerations of Market Research Small companies or those with only a limited budget for research will benefit more from conducting research themselves. Potential researchers will first need to figure out how they want to go about it, and then must develop questionnaires, figure out a research budget, figure out how to conduct focus groups and surveys and determine the status of relationships with suppliers and other business partners. The type of company that the research is being conducted for along with the status of the target market all affect how the research should be conducted. Benefits of Market Research Market research isn't just for taking a magnifying glass to consumers it's quite beneficial to conduct it for every product and service along the supply chain of any particular company. It is a great way to optimize costs for every task that a business performs. Finding out more about the pricing of all the companies that a particular business is involved with can serve as excellent leverage in negotiations for reducing costs. Understanding Your Business Another example of a market research tool is the case study. A case study is typically ordered when something goes wrong with a job or a client relationship. As much data as possible is recorded surrounding the incident, and researchers attempt to discover exactly what went wrong during that exchange. If anything can be performed better, the case study will recommend changes in how the company does business.

2.The difference between Primary research and secondary research

Primary research Primary data is the type of data that researchers collect to answer the questions at hand. In other words, data observed or collected directly from first-hand experience is called raw data. The main data can be collected through different methods, i.e. communication, interaction with respondents, observation methods, surveys, interviews or through questionnaires. "The main advantage of this type of data is that it is collected specifically for that purpose.". In this way, unbiased data and raw data can be collected from this method. The main disadvantages of this method are high cost, large amount of original data, large population, large amount of data and long time consuming. Questionnaire is a common method to collect original data. secondary research The secondary data comes from previous studies conducted by government agencies, industry associations, chambers of Commerce and other organizations. Secondary data can also be found in local libraries and networks. Books, government publications, periodicals, electronic databases, magazines and newspapers are also important sources of secondary data. Good marketing research should always start with secondary data. Existing data and information. One advantage of secondary data is that it is usually cheaper than doing primary research. In this context, "the advantage of secondary research is that it's faster and cheaper to visit when many companies may not have the resources to conduct research." Another advantage of existing data is that it saves time. "The most significant advantage of secondary data lies in the cost and time economy it provides".

Advantages of primary research 1) Targeted problems are solved. The research organization is required to have complete control over the process. In terms of its objectives and scope, the research is streamlined. Research companies can be asked to focus on finding data for specific markets rather than on the mass market. 2) Better data interpretation. The collected data can be checked and interpreted by the marketing personnel according to their needs, rather than relying on the interpretation of the collector of secondary data. 3) The latest of the data. Often secondary data is not recent and may not be specific to the location or situation the marketer is targeting. Researchers can use irrelevant surface information to understand trends, or they can find a relationship with the current situation. As a result, raw data becomes a more accurate tool because we can use data that is useful to us. 4) Proprietary issues. The master data collector is the owner of this information and does not need to share it with other companies and competitors. This is better than a competitor's response to supporting data. Disadvantages of primary research 1) High cost. Using primary research to collect data is a costly task because marketers have to be involved and design everything. 2) Time consuming. Due to the detail of the exercise, compared with the secondary data, it takes a long time to carry out the research accurately, and the secondary data can be collected in a shorter time. 3) Inaccurate feedback. If the study involves obtaining feedback from a target audience, the feedback given is likely to be incorrect. The basic nature of feedback is often biased or given just for it. 4) More resources are needed. Apart from cost and time, other resources such as human resources and materials also need a lot of investigation and data collection.

Secondary research (1) Accessibility Before the Internet age, access to good second-hand data required marketers to visit libraries or wait until reports were sent by email. When online access initially became an option, marketers needed training to understand the different rules and procedures for each data source. However, the Internet has changed the access mode of secondary research, providing convenient (for example, convenient, almost anytime and anywhere access) and universally standardized use methods for all data sources. (2) Low acquisition cost Researchers are often attracted by secondary data because it is much cheaper to obtain this information than to conduct their own research. (3) May help clarify research issues Secondary research is often used before large-scale primary research to help clarify what needs to be learned. For example, researchers who conduct competitor analysis but are not familiar with market competitors can access a second source to find a list of potential competitors. (4) Can answer research questions As mentioned earlier, secondary data collection is often used to help set up phases for primary research. In doing so, researchers may find that the exact information they are looking for is obtained from a second source, thereby eliminating the need and cost of conducting their own preliminary research. (5) May have difficulties in conducting preliminary studies Sponsors of secondary studies often provide details on how information is collected. This may include discussing the difficulties encountered. For example, a secondary study might be a study by a large market research company. These types of reports often include a part of a process to discuss data collection, which may disclose problems in obtaining data, such as a high proportion of people refusing to participate in the study. After reading this article, marketers may think that the potential information they may get is not worth the potential difficulty in conducting research.

3.The reason of an organisation like Kelloggs would use both qualitative and quantitative data

Qualitative data is concerned more about opinions, feelings and attitudes. Quantitative data is in numerical form and is usually gathered from a large sample of respondents. The quantitative data created specific statistical information that indicated that a new Crunchy Nut Bites idea was perceived as the most appealing amongst all the ideas tested. It established what proportion of people liked the new product idea enough to buy it. It also identified those product ideas that had the best or least sales potential.

As a the world's leading producer of cereals, Kelloggs need the most intuitive user experience data. So these two kinds of data give them the greatest degree of data collection effect. These two kinds of data can complement each other and can provide them with more intuitive help in the future production of products

4.EVALUATE WHY MARKET RESEARCH CAN REDUCE THE RISKS OF A NEW PRODUCT LAUNCH Market research can help a company to understand the needs of consumers, help the company to set a plan in advance to produce goods that consumers are satisfied with, so as to help the company to avoid unnecessary losses Market research provides consumers with an opportunity to express their opinions, enabling them to timely feedback their opinions and ideas on products or services to enterprises or suppliers.Through market research, enterprises that produce or provide the product or service can understand consumers' evaluation, expectation and idea of product or service quality.

THANK YOU