Podcast
Questions and Answers
What is the primary advantage of using secondary research before conducting your own studies?
What is the primary advantage of using secondary research before conducting your own studies?
Which type of research involves data gathered through experiments and interviews?
Which type of research involves data gathered through experiments and interviews?
When should secondary research be conducted in the market research process?
When should secondary research be conducted in the market research process?
Which of the following is NOT considered a source of secondary research?
Which of the following is NOT considered a source of secondary research?
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What is the overall objective when organizing secondary data collection?
What is the overall objective when organizing secondary data collection?
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Which method is NOT a part of primary research?
Which method is NOT a part of primary research?
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Why is it often beneficial to consult existing information sources before conducting new research?
Why is it often beneficial to consult existing information sources before conducting new research?
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What defines a primary reference group?
What defines a primary reference group?
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Which of the following statements best describes secondary reference groups?
Which of the following statements best describes secondary reference groups?
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What aspect is NOT a situational factor influencing consumer decisions?
What aspect is NOT a situational factor influencing consumer decisions?
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How do primary reference groups primarily influence an individual?
How do primary reference groups primarily influence an individual?
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What is a common characteristic of macro-social factors related to culture?
What is a common characteristic of macro-social factors related to culture?
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What does a market consist of in terms of demand?
What does a market consist of in terms of demand?
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Which of the following is NOT one of the market mechanisms?
Which of the following is NOT one of the market mechanisms?
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What is the primary purpose of market analysis?
What is the primary purpose of market analysis?
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Which aspect does NOT contribute to a win-win market exchange?
Which aspect does NOT contribute to a win-win market exchange?
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What does market study involve?
What does market study involve?
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Which is a component of the market study?
Which is a component of the market study?
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What is NOT true about market mechanisms?
What is NOT true about market mechanisms?
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How does effective market analysis help a business?
How does effective market analysis help a business?
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Which of the following accurately reflects a component of the win-win market exchange concept?
Which of the following accurately reflects a component of the win-win market exchange concept?
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What does market share indicate about a company?
What does market share indicate about a company?
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How is sales value calculated?
How is sales value calculated?
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What defines the actual market?
What defines the actual market?
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What is the penetration level of a product?
What is the penetration level of a product?
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Given a potential market of 50 million and an actual market of 10 million, what is the market penetration rate?
Given a potential market of 50 million and an actual market of 10 million, what is the market penetration rate?
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What was the percentage increase in e-bike sales in the French bicycle market?
What was the percentage increase in e-bike sales in the French bicycle market?
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Which of the following accurately describes the definition of the potential market?
Which of the following accurately describes the definition of the potential market?
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What does the sales volume indicate?
What does the sales volume indicate?
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What is the term for the rate of circulation of a product in its market?
What is the term for the rate of circulation of a product in its market?
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When assessing growth trends, what aspects could be evaluated?
When assessing growth trends, what aspects could be evaluated?
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Which factor is NOT typically used to analyze and compare direct competitors?
Which factor is NOT typically used to analyze and compare direct competitors?
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What classification is used for a competitor with the largest market share?
What classification is used for a competitor with the largest market share?
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Which method is NOT suggested for gathering information about competitors?
Which method is NOT suggested for gathering information about competitors?
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Which of the following describes a challenger competitor?
Which of the following describes a challenger competitor?
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What is NOT a key criterion for analyzing competitors?
What is NOT a key criterion for analyzing competitors?
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Which type of competitor focuses primarily on small market segments?
Which type of competitor focuses primarily on small market segments?
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Which aspect of competitor analysis involves assessing how they communicate their brand?
Which aspect of competitor analysis involves assessing how they communicate their brand?
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What tends to occur when a market is highly competitive?
What tends to occur when a market is highly competitive?
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Which of these is an effective source for competitor information?
Which of these is an effective source for competitor information?
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How are product/service information criteria evaluated in competitor analysis?
How are product/service information criteria evaluated in competitor analysis?
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Study Notes
Marketing Analysis: Understanding Your Environment
- The purpose of marketing analysis is to understand your environment and inform your business decisions.
Why Study the Business Environment?
- Companies must adapt and innovate to thrive.
- Understanding the environment helps companies to anticipate and respond to changes.
To Survive & Thrive Companies Must:
- Evolve and adapt
- Innovate
- Dare to be different
Evolve & Adapt
- Species that survive are those most responsive to change, not the strongest.
- Companies should analyze, anticipate, and react to environment changes.
- Companies must reinforce their strengths and minimize weaknesses.
Innovate
- Innovation is the ability to see change as an opportunity, not a threat.
- Innovation translates an invention into a valuable good/service for customers.
- An innovative idea must be reproducible at an affordable cost and satisfy specific customer needs.
Differentiate
- This is a process that makes a product/service more attractive to a specific target market.
- Companies must showcase the unique elements and create a sense of value that consumers want.
Definition of Marketing
- Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.
Role of Marketing
- Identifying customers: understand customer needs and target the right people.
- Satisfying customers: make the right product/service available at the right time to satisfy needs.
- Retaining customers: create reasons for repeat business and encourage loyalty.
The Marketing Process
- The most important thing is to forecast where customers are moving, and be in front of them (Kotler).
Questions
- Who are your customers?
- What products already exist?
- How much would they spend?
- How could you distribute?
- What do they need?
- Do you have the right skills?
- Where do they buy?
- What makes you better?
- Do you have enough money?
- What product would solve that need?
- What motivates the customer?
- Is your idea supported by current trends?
Situation Analysis
- A complete examination of internal and external influences on a business.
- Internal analysis involves assessing strengths and weaknesses.
- External analysis involves identifying opportunities and threats. These cover macro and micro influences.
Internal Analysis
- Key stakeholders (managers, supervisors, customers) review these components.
- Strengths are factors that increase value and offer a competitive advantage.
- Weaknesses are obstacles that decrease value that put you at a disadvantage compared to competition.
Questions to Determine Strengths
- What qualities or aspects persuaded your customers to choose your product or service?
- What resources are available?
- What expert areas do you have?
- What advantages do you have over competition?
Questions to Determine Weaknesses
- What can be improved or altered?
- What did you do badly?
- How does your performance compare with competitors?
- How do customers judge your performance or service?
- What do you lack? (e.g., resources, visibility, access to market)
External Analysis
- Macro Environment (uncontrollable external trends): Political, Economic, Socio-Demographic, Technological, Environmental, & Legal (PESTEL)
- Micro Environment (descriptive statistics, volume, value, trends, competitors etc.): specific to the industry including Distributors, Suppliers, Customers, Competitors, and Market Structure & Trends.
SWOT Analysis
- A summary of the key findings from a situation analysis
Definition of PESTEL
- A thorough examination of internal and external factors affecting a business.
- Political, Economic, Socio-Demographic, Technological, Environmental, & Legal
Why do a PESTEL Analysis?
- Understanding the forces of change helps anticipate challenges and opportunities
- It assists in adapting to and anticipating necessary changes and in creating a diagnostic of the major factors
- An analysis helps create opportunities and avoid or mitigate potential threats
Applying the PESTEL tool
- Collect relevant information for each external factor
- Gather information from sources such as the government, industry sources, and specialized press
- Analyze each factor, describing its potential impact, and categorizing it as an opportunity or a threat.
Political Factors
- Impact of next elections? Reforms/Public spending cuts/subsidies Government taxation policies Government policies concerning your business area (Education, tourism, health care).
- Government support of industries
- Technology, sustainability and Silver Economy
Economic Factors
- Employment figures -Economic Growth -Inflation rate
- Interest rates
- Cost of borrowing
- Exchange rates
- Optimism / Pessimism
- Consumer spending
Socio-Demographic Factors
- Population growth/age profile
- Migration
- Cultural diversity -health indicators (e.g., obesity)
- Living standards
- Religious beliefs
- Sources of militancy / social engagement
- Consumer Trends
Technological Factors
- Information Technology
- Artificial Intelligence
- Mobile technology (4G, 5G)
- Robotics/automation
- Technological disruption
- Accessibility to technology by different groups
- Obsolescence
Environmental Factors
- Climate change
- Global warming
- Sustainable / renewable energy
- Deforestation
- Pollution
- Recycling
- Water resources
Legal Factors
- Impact of next elections/government policies
- New labor laws/contract laws
- Consumer protection laws
- Government Regulations
- Health and safety laws
- International regulations/quality standards
Concrete Example & Pitfalls
- Analyzing relevant market factors (Political/Economic/ etc.)
- Identifying opportunities and threats
Keys to Successfully Analyzing Your Market
- Use numerous up-to-date official and reliable statistics
- Quote sources extensively (Harvard referencing)
- Study relevant markets with different perspectives
- Use correct vocabulary and identify suitable criteria
- Be careful and avoid general words
Market Intelligence
- Market intelligence is collecting and analyzing external information about a particular market (that a company wants to enter) to assist in decision-making.
- Market research is also used to develop expert business knowledge
Types of market research
- Secondary Research (desk research); collecting existing data; existing reports/studies; government agencies, trade associations, industry data, etc.
- Primary Research (field research): gathering new data, like surveys, focus groups, or direct observation.
Organizing secondary data
- Use different resources depending on target consumers, market variables or business.
Advantages of Secondary Research
- Rapid understanding of market dynamics
- Helps define problems
- It is free and fast (often ready in a matter of weeks)
- Ideal for smaller companies
Disadvantages of Secondary Research
- Information may not be relevant to the business problem
- Information may not be up-to-date
- Potential for misrepresentation and/or bias.
- Could be available to competitors too.
Advantages of Primary Research
- Specific to the business needs, addresses specific questions.
- Provides the ideal format for the data.
- New, current data.
Disadvantages of Primary Research
- It is often expensive and time-consuming.
- May have to use professional research companies.
Different types of Primary Market Research
- Questionnaires (postal, online, surveys, interviews, focus groups, omnibus studies)
- Experiments
- Direct observation
Different types of Closed Questions
- Dichotomous questions
- Multiple Choice
- Rating Scale /Likert Scale
- Ranking Questions
Different Types of Qualitative Research
- In-depth interviews (one on one),
- Focus groups.
- Direct observations.
Consumer Behaviour- External Influences
- Culture, subcultures, reference groups, families, and social class
Consumer Behaviour - Internal Influences
- Psychological factors (Motivation, Perception, Beliefs, Attitudes)
- Personal factors (Age, Lifestyle, Personality, Self image)
Why Study Consumer Behaviour?
- Understanding consumer behaviour is essential to future success.
- It helps explain and predict future consumer behaviour
- Segmentation can help identify potential customers with near identical needs and behaviours.
- Allows for adaptation and improvement of marketing campaigns.
Analysing Market Structure
- Levels and forms of existing competition
- Ease of market entry; Captive/Accessible
- Who are customers; eg B2B, B2C, C2C.
- Size and scope of the market; Mass/Niche market
- Consumer location; Fragmented vs concentrated market.
- Channels of distribution: physical shops, e-commerce, multi-channel brands
Market Attractiveness and Growth Potential
- Use accurate and up-to-date data to determine current turnover.
- Forecast future development.
- Identify market trends & innovations
- Identify market lifecycle
Seasonality of Sales
- Seasonal patterns of sales (e.g. winter sports equipment vs summer holiday wear).
Quantitative Indicators
- Market Share: company sales over a period / total industry sales
- Sales Volume: units (tonnes, litres, etc.)
- Sales Value: revenue/turnover of the sales unit
- Growth trends
Qualitative Data Analysis
- Data is gathered as raw data from interviews, recordings, and observations
- Transcribe data to text from conversations and discussions
- Identify recurring themes and patterns in data
- Categorize similar ideas and identify common language, behavior, and attitudes to identify opportunities
- Qualitative data analysis identifies repetitive points and common factors for consideration
- Qualitative data analysis identifies repetitive points and common factors
The Buyer Decision Making Process
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post-purchase evaluation
Different Types of Purchase
- Routine Purchase = low involvement. Repeat purchases, low value
- Complex Purchase = high involvement. High value, risky
- Impulse Purchase = unplanned, motivated by advertising and promotions, low or high value.
The Purchase Dilemma
- Consumers have limited budgets
- Consumers are influenced by individual and social factors
- Consumers encounter obstacles or motivations for purchase
Motivations & Barriers
- Positive Motivations (Utilitarian; Hedonistic; Obligatory)
- Negative Motivations (Risk; Fears; Financial)
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Description
Test your knowledge on the fundamentals of market research, focusing on the differences between primary and secondary research. This quiz covers when to use secondary research, the characteristics of reference groups, and factors influencing consumer decisions. Perfect for students or professionals looking to enhance their understanding of market research methodologies.
