WHAT I NEED TO KNOW

Good day, dear learner!

This module is solely prepared for you to access and acquire lessons
befitted to your grade level. The exercises, drills and assessments are
carefully made to suit your level of understanding. Indeed, this learning
resource is for you to fully comprehend entrepreneurship and its relevance
to your chosen strand. Independently, you are going to go through this
module following its proper sequence. Although you are going to do it alone,
this is a guided lesson and instructions/directions on how to do every activity
is plotted for your convenience.
Using this learning resource, you will be able to discuss the
relevance of entrepreneurship to your chosen strand as indicated in the K-
12 Most Essential Learning Competencies.
At the end of this module, you are expected to achieve the following
objectives:

define marketing research

discuss the importance of marketing research to a business

enterprise

identify the steps in marketing research

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 WHAT I KNOW

Many business owners neglect this crucial step in product development for
the sole reason that they don't want to hear any negative feedback. They are
convinced their product or service is perfect just the way it is, and they don't want
to risk tampering with it.
Other entrepreneurs bypass market research because they fear it will be
too expensive. With all the other startup costs you're facing, it's not easy to justify
spending money on research that will only prove what you knew all along: Your
product is a winner.
Regardless of the reason, failing to do market research can amount to a
death sentence for your product. "A lot of companies skim over the important
background information because they're so interested in getting their product to
market," says Donna Barson, president and owner of Barson Marketing Inc., a
marketing, advertising and public relations consulting firm. "But the companies
that do the best are the ones that do their homework."

Answer the questions which follow.

1. Recall a time you availed of a product or service that is considerably expensive. What steps did
you take before arriving at the decision of making the purchase?

2. What is the relevance of marketing research to a company’s decision

making needs?

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WHAT’S NEW

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 A short Glimpse of Consumer Groups by Generation

One way to define and describe target markets and their demographic ras
of generational groups. These generations are broad divisions of people
according to their birth. The rationale behind such divisions is that although
individual sensibilities may differ greatly, there are aspects common to many
members of each generation which can be used as general guidelines when
marketing to them as distinct consumer groups. These are the result of historical,
social, and even technological developments at particular points in time that form
a shared experience among people from different generations. Becoming familiar
with the characteristics of each group is one way for marketers to address the
various needs, wants, lifestyles, and experiences of each generation. Some of the
more common groupings marketers use are Baby Boomers, Generation X,
Generation Y (also known as Millennials), and Generation Z.

Baby Boomers
Baby Boomers are those born after World War II - roughly between 1946
and 1964. This era was marked by an unusually high birth rate, especially in
English-speaking countries like the United States, Australia, and Canada, hence it
was referred to as the baby boom generation. Sometimes also referred to as the
"Me Generation" Baby Boomers often define themselves by their careers, and
many of them are workaholics. They take pride in individualization, self-
expression, and optimism.
In 2016, Boomers were aged 52 to 70. They consider health one of their
primary Health foods, health clubs and spas, hair coloring, and anti-aging
products are popular among Boomers. Many of them are approaching or have
already reached retirement age, though it is common for them to lead active post-
retirement lives, attempting to redefine what is expected of people their age.
Although they are consciously aware that they are aging, they do not like being
reminded of that fact; they tend to react negatively to terms such as senior citizen,
retiree, aging, Golden Years, Silver Years, mature, and prime time of life.

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Marketers would do well to avoid these terms when promoting products meant for
Baby Boomers.
The Boomers are regular users of Smartphones, tablets, and new media in
general - more so than generations that precedes them, though not on the same
scale as subsequent generations. They remain avid users and consumers of
traditional media (newspapers, television, magazines, radio, etc.), and so
marketing campaigns via these forms of media are still quite viable.

Generation X
Members of Generation X were born between 1965 and 1977. These years
experienced lower birth rates than the Baby Boom years. As of 2016, Gen Xers
ranged from 39 to 51 years of age. They grew up in times that were more
economically difficult than did their Boomer counterparts. In the Philippine context,
Gen Xers came of age during the Marcos years-a time marked by government
corruption, income inequality, unemployment and underemployment, and massive
foreign debt. This lack of financial security led to the OFW phenomenon. As the
Gen Xers became old enough to enter the workforce, job opportunities in the
Philippines were few and far between. Members of this generation left the country
to work overseas, and remittances became a major source of income for families
all over the Philippines. Globalization and multiculturalism became norms
beginning with this generation, and these opened up Gen Xers' purchasing habits
to global trends.
Gen Xers tend to be value-oriented and price-conscious in their purchasing
habits. They respond well to explanations of a product's features and their
benefits. They also value technological literacy highly. Because they prioritize
value for money above all else, brand loyalty is of little importance to them.

Millennials

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 Generation Y, or Millennials, are those born between 1977 and 1994,
putting them at 22 to 39 years of age as of 2016. Many of them are the children of
Baby Boomers. They are the first generation to come of age in the new
millennium, a time of significant social change. Employment opportunities for
women had become much more commonly available, and dual-income
households were no longer out of the ordinary. This is also the first generation to
grow up with the Internet, and they are thus very tech-savvy and are avid users of
new media, depending less on traditional media than did previous generations.
Growing up in a virtual world means that many Millennials have a more global
worldview, with increased social awareness and respect for ethnic and cultural
diversity.
Millennials are sometimes accused of being lazy, entitled, and indifferent,
but this notion might be the result of the Millennials' reaction to the continually
difficult economic conditions. Societies the world over have had trouble recovering
from the Asian financial crisis of 1997 and the global financial crisis of 2008. In the
Philippines, this is compounded by the lingering effects of the Marcos
administration on the national economy. Both Generations X and Y are less
financially stable than past generations. Many Millennials, upon entering the
workforce, find that wages have not kept pace with the rising cost of living, and
this may lead to dissatisfaction and the belief that they "deserve" more than what
is currently available to them.
Millennials value independence and autonomy, and place emphasis on
choice, customization, scrutiny, integrity, collaboration, speed, entertainment, and
innovation. Contrary to the notion that they are selfish and detached, many
Millennials align themselves with a number of social advocacies-
environmentalism, gender equality, sustainable development. They respond
positively to businesses that support these advocacies, and may even be willing to
pay a slight premium in the name of supporting these causes.

Generation Z

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 Generation Z consists of people born after 1994: as of 2016, they were
below 22 years old. Because of their youth, their purchasing power tends to be
highly dependent on their parents; purchasing habits. The generation patronizes
a wide variety of products and services including fashion, cosmetics, pop culture
(music, television, films, video games, and their respective merchandise), and
even big-ticket items such as family vehicles.
Like Millennials, members of Gen Z are highly tech savvy, although Gen Z
is the first generation to consist of what writer and educator Marc Prensky (2001)
calls "digital natives"- people born into a world of digital technology, and thus are
"native speakers" of the practices and norms of this digital world. Therefore,
marketing campaigns targeting Gen Z should place heavy emphasis on new
media-Facebook, Twitter, YouTube, Instagram, and other social networking sites.
However, traditional media should not be abandoned completely. Despite Gen Z's
heavy dependence on the Internet, television remains the primary venue through
which this generation was first introduced to brands and commercial products.
Overall, a good understanding of the commonalities and differences between the
generations serves as a valuable starting point for marketers seeking to target
specific age brackets. However, one must remember that traits are not absolute,
and there will always be exceptions. So, consumers' tastes are constantly
evolving and responding to changes in society.

Answer the following questions:

1. What are the characteristics of each generation group?
2. What factors gave rise to the characteristics of each group?
3. How does each generation group respond to marketing efforts? What is the
reason for this?
4. Why should marketers know the preferences of each generation?

WHAT IS IT

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Marketing Research Defined
Marketing research is the process of collecting and analyzing data to address a
specific marketing problem. It can be concerned with the different aspects of the market,
including product, sales, buyer behavior, promotion, distribution, pricing, and packaging.
Many companies have used marketing research to decide whether to launch a product,
introduce a variant of the product, reinvent the branding, and so on. The role of
marketing research is not to make marketing decisions but rather help reduce risks in
decision-making.

Importance of Marketing Research

Marketing research assists the marketing organization in many ways. It can
contribute to the success of different marketing activities. For example, conducting
marketing research before introducing a product to the market can help identify the
demographics of the target market, determine the probability of success, and the
alternative courses of action. This helps marketers avoid potential loss and iron out
issues that may occur.
Marketing research can help update marketers regarding the competitors'
activities and strategies through comparative studies. The results of the research will
enable them to devise ways to improve their competitive advantage.
It can also help determine aspects of the business that need to be changed or
upgraded. It may indicate the need for an organization to improve marketing strategies,
update products or services, and review its business plan. It can also help identify
opportunities and new areas for expansion. For example, the toy company Lego is more
known for its toys for boys. In a company study, it is revealed that only nine percent of
current active LEGO households have females as primary users of the toy. LEGO
conducted a four-year global research with 3,500 girls and their mothers to find out what
would make them more interested in playing with LEGO products. Based on the results
of its research, LEGO launched LEGO Friends in 2012 as an answer to the target
market's preferences. Tech giant Apple has a marketing research arm called Apple
Customer Pulse which conducts online surveys about Apple products. The data

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generated from the surveys have been helpful in creating products and modifying
existing designs.

The Marketing Research Process

In conducting marketing research, it will help to follow these steps:
1. State the objectives. The marketing researcher should first establish the
objectives of the research which will be the bases for research questions (e.g,
Where is the best location for my business?) and potential research issues (e.g,
research budget, size of the research project). They should be clear, concise,
attainable, measurable, and quantifiable. Defining the objectives aids the
researcher in designing a market research process that suits the company's
capacity and needs. Also, it helps him or her avoid setting conflicting
expectations and gathering irrelevant data.
2. Determine the research methodology. The researcher should choose a
combination of appropriate research methods to fulfill the research objectives.
The research methodology may be adapted to the manner of gathering
information.
Primary research gathers original information directly through surveys,
experiments, field tests, direct observations, focus group discussions, and
interviews.
Secondary research uses previously published information such as materials on
the Internet, existing marketing research results, data Irom the company's stock
lists and customer databases, and information from external organizations (e.g,
industry bodies, and government agencies).
The methodology may also be based on the type of information to be
gathered.

Quantitative research involves numerical data such as customer return

frequency, sales figures, and financial trends. This type of research can be used
to understand the demographics of customers, identify the size of the market,
and discover areas for sales growth.

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 Qualitative research mainly studies views and attitudes in relation to the
company's products and services. This may involve focus group discussions with
clients and potential customers and reviews of competitors.

It may also depend on the type of study.

Exploratory research involves reaching a better understanding of the research

problem and identifying the variables to be measured. This can be done through
trial studies, interviews, group discussions, and experiments.

Descriptive research describes marketing or marketing mix characteristics and

the extent or association between variables. Before conducting this type of
research, the researcher must already have a good understanding of the
research problem through a prior exploratory study.

Causal research investigates cause-and-effect relationships or why a change in

one variable brings about a change in another.

3. Gather data. The researcher should collect data based on his or her chosen
research method. He or she should ensure that the gathered information are
detailed and complete to avoid misleading or irrelevant results.

Companies can also gather data through their marketing activities. For example,
online surveys are included in company websites to get useful customer
feedback. Focus group discussions are facilitated to consult selected consumers
regarding the effectiveness of a campaign material.

4. Interpret the results. After collecting the data, the researcher should now be
ready to interpret them. To select appropriate statistical tools for quantitative
data, the researcher must first figure out how many samples are to be compared,

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 whether these samples are related or unrelated to one another, and the levels of
data measurement (e.g, frequency of items, ranking of items). For qualitative
data, the researcher can use tables, flow charts, or perceptual maps to group
similar information; identify trends and themes; and take note of major points
that are uncovered.

lt should be emphasized that only data that correspond to the company's needs
should be interpreted to formulate relevant conclusions.

5. Present the results. Interpreted data can be presented ina textual report with
graphs, charts, tables, and figures. There should be a comprehensive
documentation of the entire research process so it can be a helpful reference for
the firm's future decision-making needs.

WHAT’S MORE

Answer the following questions.

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1. Assess what may be the best research methodology for identifying the likes and
dislikes of an individual consumer. Survey, interview, or others? Explain.

2. Design a research plan to identify how teenagers typically spend their weekday
evenings. Identify as many possible biases as possible that you feel your
research plan can become prone to.

WHAT I HAVE LEARNED

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Use Direct Observation tool to assess an online business offering products or services
that you have availed during this COVID pandemic in terms of product or service
quality, price, customer service, timeliness of delivery and after sales service. Interpret
the results and present them using text and graphic organizers.

WHAT I CAN DO

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Discuss a product or service that you thought would do well but did not. What made you
think that it would do well? What do you think happened?

Product:

Why do you think that it would do well:

What do you think happened:

ASSESSMENT

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Identify the term being described in each statement.

________________ 1.Type of research that can be used to understand the

demographics of customers, identify the size of the market and discover areas for sales
growth.
________________ 2. Systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the field of marketing
________________ 3. Type of research that gathers original information directly
through surveys, field tests, direct observations, focus group discussions and interviews
________________ 4. Type of research that mainly studies views and attitudes in
relation to the company’s products and services
________________ 5. Type of research that describes marketing or marketing mix
characteristics and the extent of association between variables
________________ 6. Type of research involving reaching a better understanding of
the research problem and identifying the variables to be measured
________________ 7. Investigates cause – and – effect relationships or why a change
in one variable brings about a change in another.

ADDITIONAL ACTIVITIES

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Answer the following questions.
1. What can a survey do that an in-depth interview cannot?

2. Conversely, what can an in-depth interview do that a survey cannot?

3. What are the possible biases that a focus group discussion can be prone?

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 ANSWER KEY

What's more
Answers vary

What I have learned

Answers vary

What I Can Do
Answers vary

Assessment
1. Quantitative research
2. MArketing research
3. Primary research
4. Qualitative research
5. Descriptive research
6. Exploratory research
7. Causal research

Additional Activities
Answers vary

REFERENCES

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Te, Baltazar-Marte, Abrina (2018).Principles of Marketing for Senior High School. 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc

Ilano, A.B., (2016).Principles of Marketing.Manila, Philippines:REX Book Store

Zarate, Cynthia A.(2017).Principles of Marketing for Senior High School.839 EDSA,

South Triangle, Quezon City:C & E Publishing, Inc.

https://www.entrepreneur.com/article/217388

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