UNIT 3

MARKETING
PRESENTED BY: YASRA KHALID
3.2. MARKET RESEARCH

PRESENTED BY: YASRA KHALID

 BUSINESS IN CONTEXT
INTERNET, MOBILES, APPS,
SOCIAL MEDIA: MARKET
RESEARCH IS CHANGING
 MARKET RESEARCH
Market research is the process of
gathering, analyzing, and interpreting
information about a market, including
information about potential customers
and competitors.
ROLE OF MARKET RESEARCH
It helps businesses understand their target audience's
needs, preferences, and behaviors and evaluate market
demand, pricing, and competition.
Through surveys, interviews, focus groups, and data
analysis, market research provides valuable insights for
making informed business decisions, such as product
development, marketing strategies, and business expansion.
ROLE OF MARKET RESEARCH
Market research can be used to measure customer
reactions to:
new products
different price levels
alternative forms of promotion
new types of packaging
online distribution.
 THE PURPOSE OF
MARKET RESEARCH
 IDENTIFY THE MAIN FEATURES OF THE MARKET

Before entering a new market, a business will need to establish

some of its key features:
Overall size – is it worthwhile for the business to be entering
this market?
Growth – is the market becoming bigger or smaller in terms
of sales?
Competitors – how many other businesses sell in this
market and how much market power do they
have?
REDUCE THE RISKS OF NEW PRODUCT
LAUNCHES
 IDENTIFY CONSUMER CHARACTERISTICS
Identify Likely Consumers- Determine who the potential
consumers of a product are likely to be.
Understand consumers' wants and needs- Importance of
Consumer Profiling (Awareness of potential consumer profiles
allows for better product targeting.)
Market sectors can be defined by factors like:
Age range – Different products appeal to various age groups.
Income level – Helps in setting an affordable price range.
Social class – Can influence preferences and purchasing
habits.
 EXPLAIN PATTERNS IN SALES OF EXISTING
PRODUCTS AND MARKET TRENDS
Market research needs to be conducted for existing
products as well as new ones.
Sales at the fashion retailer Gap fell by 4% in 2019. This
was despite global clothing sales increasing. Gap used
market research to analyse the causes of this decline in
sales. This data was used in the company’s promotions to
try to reverse the sales trend.
 PREDICT FUTURE DEMAND CHANGES

Demand levels for existing products may change.

Unless a business tries to forecast these changes with
market research, it may overproduce or underproduce
a product.
For example, a travel firm will want to investigate social
and income changes to see how these might affect the
demand for holidays in the future
 ASSESS THE MOST POPULAR DESIGNS,
PROMOTIONS, STYLES AND PACKAGING FOR A
PRODUCT
Different versions of a product or potential new
advertisements need to be consumer-tested
before a final decision is made on them.
Consumer responses can then be incorporated
into the final product.
 PRIMARY
RESEARCH
AND
SECONDARY
RESEARCH
Primary Research
Definition: First-hand data collection conducted by an organization for its
specific needs.
Purpose: Provides tailored insights directly relevant to the organization's
objectives.
Secondary Research
Definition: The analysis and use of existing data collected by other
organizations, often for different purposes.
Sources: Data is sourced from previous studies, reports, and publications.
Reasons for Using Secondary Research First
Cost-Effective: Generally lower cost compared to conducting primary research.
Quick Accessibility: Secondary data can be obtained more rapidly than
collecting new data.
Market Assessment: Helps evaluate key market features (is too small or overly
competitive)
Usefulness of Secondary Research Data
1. Market Insights
Provides comprehensive information on population demographics, economic
conditions, and market trends.
2. Guiding Primary Research
Identifies key areas where primary research should focus, ensuring a targeted and
efficient approach.
3. Baseline Comparisons
Offers a foundation for comparing primary data, allowing businesses to validate their
findings.
4. Accuracy and Reliability
Often based on large sample sizes, enhancing the reliability and precision of the data.
5. Accessibility and Cost-Effectiveness
Many sources are accessible online, making it easy and cost-effective to obtain.
Ideal for situations with limited time or budget constraints.
6. Cross-Verification
Multiple sources allow cross-checking for accuracy, improving the credibility of the
insights gathered.
Limitations of Secondary Research Data
Outdated Information- Some sources are not updated regularly, which
can lead to inaccurate or outdated conclusions.
Lack of Specificity- Data is often collected for different purposes and
may not align with the unique needs or target audience of the
business.
Restricted Access and High Costs- Not all secondary data is readily
accessible; some high-quality data from market research agencies can
be costly.
Need for Primary Research- Secondary data can highlight market
potential but often lacks detailed insights on specific consumer
profiles and preferences, requiring follow-up with primary research.
Usefulness of Primary Research Data
1. Exploring New Markets- Essential for understanding completely new or
innovative markets where no existing data is available.
2. Specific Business Purposes- Tailored to answer specific business
questions, providing highly relevant and actionable insights.
3. Qualitative Insights- Allows for collecting qualitative data that explains
quantitative trends, such as reasons for declining sales through direct
consumer feedback.
4. Assessing Market Reactions- Helps gauge consumer response to specific
changes like price adjustments or increased advertising.
5. Targeted Consumer Insights- Focuses on gathering data from particular
consumer groups relevant to the business.
6. Up-to-Date Information- Provides the latest data, crucial for dynamic or
fast-evolving markets.
Limitations of primary research data:
The selection of a sufficiently large and representative
sample greatly influences the accuracy of data.
Business start-ups may not be able to finance detailed
primary research.
Newly formed businesses have no customers yet to gain
important data from.
It can be time-consuming to collect and analyse primary
research data.
 Businesses now a’ days are
increasingly using electronic
means to gather the data
needed before deciding on
their marketing strategies.
Electronic Data Gathering:
Businesses increasingly use electronic means (like tablets and
mobile phones) to collect data for marketing strategies.
Data can be collected efficiently via electronic questionnaires
and loyalty card schemes, especially for retailers.
Daraz: As Pakistan’s largest e-commerce
platform, Daraz gathers customer data through
its website and app, tracking browsing
patterns, purchase behavior, and feedback.
This data helps Daraz refine its product
offerings, run targeted ad campaigns, and
deliver promotions aligned with users'
preferences, enhancing the online shopping
experience.
Loyalty Card Schemes:
Supermarkets use loyalty cards to track consumer purchases,
frequency, demographics (age, gender, income).
This data enables targeted marketing, allowing retailers to send relevant
ads and offers, making it cost-effective by focusing on customer
interests.
HBL Konnect: HBL’s branchless banking
service, HBL Konnect, rewards users based
on transaction history. By tracking usage
patterns, HBL Konnect sends targeted offers,
like discounts on partner retail outlets and
cashback on mobile top-ups. This loyalty
program is designed to encourage frequent
transactions and attract unbanked
customers.
 Social Media and Behavioral Data:
Special software uses data from social media, chat apps, and behavioral
insights, reaching advanced levels of understanding in consumer emotions
and thoughts.
Data inputs include videos, images, text, and audio for comprehensive
behavioral and emotional analysis.

Foodpanda Pakistan: Foodpanda leverages social

media data and behavioral insights from its app to
personalize marketing. Using customer order
histories, Foodpanda sends notifications about
relevant discounts, trending restaurants, and food
preferences, and it runs social media campaigns
tailored to regional tastes.
 WHY ELECTRONIC DATA?
Online surveys are inexpensive, often costing a few
thousand dollars, with rapid results from pre-prepared
questionnaires.
Mobile surveys encourage higher response rates with
convenient options, like keypad or voice responses,
with automated analysis.
Cheaper and accessible electronic methods have
democratized market research, making it viable for
small and large businesses.
In 2019, global spending on market research increased
by 5%, reaching $82 billion, indicating its value in
business decisions.
Is it possible to study all your potential customers?

Sampling is the process of selecting a subset of

individuals or items from a larger population to
represent that population in research. It’s commonly
used in market research, surveys, and studies where
it’s impractical or too costly to collect data from
every member of the target population.
 IMPORTANCE
Sampling Importance: A well-chosen, larger sample
size increases the representativeness of the findings,
making them more likely to reflect the overall
population accurately.
Confidence in Results: With a larger sample size,
researchers can have greater confidence that the
insights gained from the sample apply to the full
market, leading to more reliable data-driven
decisions.
 LIMITATIONS
Small Sample Size: Using a very small sample to cut costs may not
represent the entire target population accurately.
Cost and Time Constraints: increasing sample size improves accuracy
but also raises costs and requires more time. A large sample, such as
1,000 respondents, is ideal but can be impractical for quick or
budget-sensitive research.
Risk of Sampling Bias- Sampling results may differ from those of the
entire population due to sampling bias (sample does not accurately
represent the overall population)
Inappropriate Sampling Methods- Choosing the wrong sampling
method, like convenience sampling, limits accuracy.
 DATA
ANALYSIS
Post-Research Analysis for Business Decisions
After research, data must be analyzed to be useful for business decision-
makers, focusing on reliability, analysis, and interpretation:
Reliability of Data:
Both primary and secondary data can be unreliable. Secondary data may
be outdated or irrelevant, while primary data faces issues like sampling
bias, questionnaire bias (leading questions that influence answers), and
response bias (respondents not answering truthfully).
Analysis of Quantitative Data:
Raw numerical data needs to be organized and analyzed to highlight key
features. Basic statistical techniques help present data clearly, making it
easier to interpret and support informed business decisions.
Raw data, in its unprocessed form, is difficult to interpret and has little
value. To make data useful, basic statistical techniques, particularly
averages, help reveal patterns and support decision-making. Common
types of averages include:
1. Arithmetic Mean (Mean):
Calculated by adding all values and dividing by the number of items.
2. Mode:
The mode is the most frequently occurring value. Ordering data
helps to identify values that appear most often, revealing popular or
common figures in the dataset.
3. Median:
The median represents the middle value in ordered data. The
median helps find the central point in skewed data, making it useful
for datasets with outliers.
Here are examples of how each type of average can be used in
market research analysis:
1. Mean: Averages of customer satisfaction scores can
identify overall performance trends in a product or
service.
2. Mode: Identifying the most common purchase frequency
among customers helps businesses understand popular
buying behaviors.
3. Median: Analyzing the median income of respondents
provides insights into the purchasing power of a target
market.
 Analysis of Qualitative Data
Qualitative research seeks to understand consumer behavior by exploring
opinions, attitudes, and beliefs. Unlike quantitative data, qualitative data
cannot be analyzed statistically. It provides valuable insights into customer
needs, answering questions like why consumers may not purchase a
product or what features they find appealing.
To analyze this data, researchers collect and categorize responses through
a process called coding. This means labeling important words or phrases
from consumer feedback, such as "good value" or "branding."
These labeled responses can then be compared with demographic
information, like customers' ages or income levels. For example, if the data
shows that high-income consumers frequently mention "branding," the
business can use this information to tailor its marketing strategies to
attract this specific group.
PRESENTATION
OF RESEARCH
DATA
Decision-makers can present research data in various
formats:
1. Tables: Provide a precise reference to large amounts
of data, making it easy to review and compare.
2. Pie Graphs (Pie Charts): Show proportions of different
data sets relative to the total, allowing for easy
comparison between sets of results. Each section's
size is determined by its angle, calculated using the
formula:
3. Line Graphs: Display changes in a variable over time,
clearly illustrating trends and seasonal fluctuations.
4. Bar Charts: Use bands of equal width but varying
lengths to represent relative values, facilitating
comparisons over time or between different items.
 ANY
QUESTIONS?