MARKET RESEARCH

BY: PRINCE OWUSU-ANSAH

OBJECTIVES

At the end of the presentation, I expect all of you to

understand
What market research is
What it entails
The reason behind it
And the importance of market research.
CONTENTS

Why is market research needed?

What is meant by primary research?
What is meant by secondary research?
Who carries out this research?
Why the information collected may not be accurate
WHY IS MARKET RESEARCH NEEDED?

A business finds out consumer wants before a product is

developed and produced.
It is very important as wastage of materials and money is
reduced.
It is to answer various questions.
TYPES OF INFORMATION

Quantitative information: Information about the quantity of

something.
Qualitative information: Information about opinions or
judgements.
INFORMATION GATHERING: PRIMARY
RESEARCH
Field research - first-hand information
Original data gathered for a specific purpose by the business
Involves direct contact with potential or existing customers
Types include questionnaires, interviews, consumer panels,
observation, experiments etc.
EXAMPLES: QUESTIONNAIRE

Advantages

Customer opinions are easily obtained

It is quick to do

Disadvantages

Inadequate information

There is no 100% feedback

HOW A QUESTIONNAIRE IS PREPARED

Find its main purpose

Find who you want to ask Writing the questions

Find where you want to carry Few number of questions

Short and clear questions

out the questionnaire Avoid open-minded questions

Be careful not to force an answer

Be logical
INTERVIEWS

Advantages

Detailed information

Questions are easily altered

Disadvantages

It consumes time

It is expensive
PRIMARY RESEARCH PROCESS
INFORMATION GATHERING: SECONDARY
RESEARCH
Desk research - second-hand information
Previously published data gathered originally for another
purpose
Internal Sources of Information
External Sources of Information
ADVANTAGES & DISADVANTAGES

It is cheap
Information is easily
accessed
Time consuming

Information is not reliable

WHO CARRIES OUT MARKET RESEARCH?

Research is done into different aspects of the market by

various businesses.
Specialist market research agency.
It carries polls
They find out consumer spending habits
Research on the competitors products
WHY THE INFORMATION COLLECTED MAY
NOT BE ACCURATE
The accuracy depends largely on how carefully the sample
was drawn up and the way the questions were formed.
It cannot cover the entire population
Quota sample is more accurate than random sample
Secondary research might not be so accurate
TEST YOUR UNDERSTANDING

What is market research?

Explain the types of research
State the process of primary research
Why is the research not always accurate?