Senior High

School

Presentation 2024

MARKET
RESEARCH
 Market
Research
Basic Questions in Market
Research
Who?
These questions serve as a
guide in preparation for any
major resarch.
Identifies who among the members
of the selected market segment will 04
participate in the market research.

Why? When?

01 Purpose and objective for

conducting the market research.
05 Determines the time and timing of
the research.

Where?
What?
Determines the scope and the
02 Pinpoints the relevant location of
06
limitations of the market resarch to be the market research.
conducted.

Which? How?

03 Determines which segment of the market

must be studied, this must be the market
07 Determines the methodology to be
used for the market research (e.g,
segment that the entrepreneur is eyeing. survey, focus group discussion etc.).
 Market Research
Methodologies
Good market research provides entrepreneurs with
detailed data such as customer preferences, market
trends, and competitor information. This information
is essential for entrepreneurs to make informed
business decisions. Furthermore, market research
can help entrepreneurs identify opportunities for
growth, as well as potential risks and threats. And in
order to aid the entrepreneur in gathering relevant
market information, there are several market
research methodologies using scientific approaches
that can be employed.
 Case Example
1. Boy, aged 10, bought two hotdogs at 2pm.
2. Girl, aged 8, bought one hotdog at 4pm.
3. Man, aged 26, bought three hotdogs at 1pm.
4. Couple, man and wife, aged about 30, bought two hotdogs at 8am.
5. Boy, aged 14, bought five hotdogs for friends at 3pm.
6. Three girls, aged about 18, bought six hotdogs at 6pm.
7. Girl, aged 5, asked mom to buy her one hotdog at 11am. Mom aged 27,
bought one
8. Twin boys, aged 7, asked their older brother to buy them four hotdogs
at 12 noon.
Older brother, aged 14, bought two hotdogs for himself.
Two teenagers, boy and girl, aged about 15, bought two hotdogs at 1pm.
10. Five children (two girls, three boys), about nine years old, bought five
hotdogs at 12 noon.
11. Man, aged 27, bought two hotdogs at 9am
12. Woman, aged 30, bought three hotdogs at 10am
13. Three boys, aged 13, bought five hotdogs at 4pm.
Tables
In market research, there are three
commonly used graphs...................

Histogram

Commonly known as bar

graph,it consists a series of
rectangle or”bars”. Each bar
is proportional in width to the
range of values and within a
class and proportional in
height to the number of items
falling class.
 Frequency Polygon
This is contructed by marking
the frequencies on the
vertical axis with a dot
corresponding to the values
on the horizontal axis. These
dots are connected with a
straight line to form a
polygon.
Pie chart

A circular graph divided

into sections that
represent the relative
frequencies or
magnitudes of the
grouped values.
For the data to be more useful to the
entrepreneur, a cross tabulation is
recommended
Developing creative FDG can be used to
concepts and copy
material for
address substansive
advertisements. issues such as:

Generating new ideas

about older products. Obtaining preliminary consumer reaction
to specific marketing programs.

Obtaining impressions on new

product concepts.
Securing price impressions

Understanding consumer’s perceptions,

preferences and behavior concerning a
product category.
 Nine steps in conducting a focus
group discussion

1. Develop the research objectives. What is the research all about?

2. Determine the participants profile. Who are the most knowledgeable or
most relevant participants?
3. Determine the appropriate token or "compensation" for the participants.
4. Develop a participant screener questionnaire.
5. Recruit the participants.
6. Select a good facilitator: The key qualities of a good facilitator are:
• kindness with firmness
• involvement and encouragement
• complete understanding
• flexibility
• sensitivity
7. Develop a facilitator's discussion guide.
8. Arrange for the venue and logistics.
9. Analyze the results of the focus group discussion.
Day 2
Observation
Technique
Observational research allows researchers
to gather data about customers by
observing them in their natural settings
without direct interaction. By recording
events and behaviors discreetly,
researchers can capture valuable
information to analyze and draw insights
from.
These observations must be documented and tallied for proper
analysis later on. Prior to doing the observation, it is important for
the researcher to ensure that the following conditions are met:

1. The needed information must be observable or inferable

from the behavior that can be observed.
2. The subject matter contains some sensitivity that needs
detached observation.
3. The behaviors of interest must be repetitive, frequent, or
predictable in some manner.
4. The behaviors of interest must be of a relatively short
duration.
Advantages of Observation
Research
It allows the researcher to see what costumers
actually do rather than rely on what they say they
do.
It allows the researcher to observe customers in
their natural setting.
It does not subject the researcher to the
unwillingness of customers or their inability to
reply to ceratin questions.
Some information are better gathered quickly and
accurately through observation.
Disadvantages of
Observation Research
The researcher can only see the outside behavior of the
customer, but cannot determine the inner motivation of the
customer.
The researcher cannot get the reasons behind the
behavior.
The researcher can only focus on the “here and
now.” It cannot cover the past nor cover the
future.
Finally, the observation technique may border on
the unethical because the respondents have not
agreed to be observed.
Two types of Observation
Research

Human Observations
humans observe the events as they
happen.

Mechanical observation
mechanical devices are used to record
events for later analysis.
Guidelines in conducting
observation research.
1. Determine the pre-observation objectives.
2. Prepare your pre-observation tips:
a. Prepare and clarify your observation points and issues.
b. Prepare your observation materials.
c. Identify the persons to be observed.
d. Position yourself without being noticed.
3. Focus on what you want to observe:
a. Is it costumer demographics?
b. Customer buying behavior?
c. Customer usage behavior?
d. Other customer information?
4. Observation proper:
a. Observe keenly and listen intently.
b. Be mindful of the surroundings.
c. Be alert for obvious movements.
d. Be sensitive to subtle movements.
f. Do not be obvious.
g. Observe and take note of other things that you feel are
important.
5. Post-observation tips:
a. Review your notes.
b. Make sure that the flow is correct.
c. Tabulate what needs to be tabulated.
d. Interpret and analyze your data.
e. Make a formal report.
 Survey Research

Survey is the most preferred

instrument for in-depth quantitative
research. The respondents are
asked a variety of questions.
They can be conducted via

Telephone Face-to-face interview Mail interview

Survey Research
In planning a survey, there are three important
concerns that one has to look into:

1. Sampling technique
2. Getting the sample size
3. Designing the questionnaire
Questionnaire Design

Designing the questionnaire is

complicated because surveys can
ask about topics in varying degrees
of detail, questions can be asked in
different ways, and questions asked
earlier in a survey may influence how
people respond to later questions.
 Questionnaire Design
There are some basic rules that have to be followed in
question formulation.

The questions, in their totality, should be able to elicit

all the necessary information required in the research.
Each question should be clear and definite.
Each question should cover one topic at a time.
Each question should be presented in a neutral manner.
Each question should be translated into the dialect that
the target respondents are familiar with.
Sampling Technique
Sampling techniques are classified into
probability and non-probability sampling.
Probability sampling
is where the respondents are randomly selected
from a population such as in the lottery method.
Non-probability sampling
refers to the technique that is resorted to “when
it is difficult to estimate the population of the
study because they are mobile or transitory in a
given location.”
Sampling Size
There are three basic sample size determinants.
These are as follows:
1. Data variability of a proportion- dispersion of the data
is from a central point.
2. Confidence level in the estimation process- the higher
the confidence level desired, the bigger the sample
size needed; the current industry standard has 95%
confidence level
3. Error in the result of the estimation process- the less
error margin desired, the bigger is the required sample
size; it is expressed as plus or minus (+/-) a certain
percentage.
Sampling Size
Assuming the population is unknown, the formula
for computing the sample size as follows:

Where:
Z= 1.96 (the value of the normal variable for a confidence level of 0.95)
p= 0.50 (the proportion of getting a good sample)
1-p= 0.50 (the proportion of getting bad sample)
d= error margin in decimal
n= sample size
Customer Profiling

In effect, when the entrepreneur starts

doing the market research, he or she
is also beginning to understand his or
her customers, and therefore, profiling
them.
 Methods of Customer Profiling
Demographics
In demographic classification, we categorize customers
into the following:
1. Age
2. Income classes
3. Social classes/Reference groups
4. Ethnic backgrounds
5. Religious beliefs
6. Occupations
7. Domiciles
 Income levels determine the purchasing power of
customers. Usually, the customers are classified
according to the following income classes:

1. Class A, the high income class

2. Class B, the upper middle income class
3. Class C, the middle income class
4. Class D, the lower middle income class
5. Class E, the low income class
Ethnic backgrounds and religious beliefs affect the
cultural beliefs of people such as the food they
eat, how they save and how they spend, and their
levels of conservatism or progressiveness.

Social classes and reference groups often dictate

what is acceptable or unacceptable behavior.
These classes or groups often include family,
friends, neighbors, fellow workers, and societal
affiliations.
Occupations such as those of factory foremen,
doctors, taxi drivers, nurses and teachers also
determine what kinds of goods and services these
people would buy.

Domiciles or habitats, or areas of residence and

environmental surroundings, oftentimes, define and
limit the choices available to customers.
Psychographics
the customer’s motivations, perceptions,
preferences and lifestyle.

Motivation goes to the roots of customer’s

needs and wants.
Perception is the way a person chooses to
receive or interpret information from the
external world.
There are lifestyle classifications that talk
about what people value most in their
lives.
 Technographics
It contains insights about potential
customers’ technology stack and how
and when they use their technology.

In technographics, products and services can range

from general purpose items to highly specialized,
customized and “technologized” goods.
 Application of Costumer Profiling
The entrepreneur can use or apply customer profiling in two
ways.
1. The first way is to develop a product or service to test out in the
marketplace.
a. The costumers most attracted to the product or service can then be
profiled.
b After profiling, the next step is to find out how huge this market is for
exploitation purposes.
2.The second way is to profile the different types of customers in a given
industry or areas as to their needs and wants.
a. From these types, the entrepreneur could then choose the costumer
group with the best potentials.
b. Products or services can be developed by the entrepreneur to match this
chosen customer group.
Market Segmentation

Customers with similar needs and

wants and similar willingness and
ability to pay can be grouped into
one customer segment.
Market Aggregation
Some entrepreneurs prefer to appeal
to broader market if possible. They
want market aggregation rather than
market segmentation. They prefer to
deal in commodities like rice, bread,
and water that appeal to market
aggregates rather than market
segments.
Market Mappiing
This refers to grouping customers and
products according to certain market
variables.
 Market Mapping
The purpose of market mapping
is to provide the market analyst a
better understanding of the
market as a whole and to paint a
clearer picture of where the
different competitors are relative
to the different market
segments.
 THANK
YOU
Remy Marsh
+123-456-7890
hello@reallygreatsite.com
www.reallygreatsite.com
123 Anywhere St., Any City,
State, Country 12345