Market Research and Sampling PDF

MARKET RESEARCH AND SAMPLING  MONDAY, JANUARY 20TH, 2025 LEARNING OBJECTIVES Learners will be able to; Explain the purposes of market research in identifying key market features (size, growth, competitors). Understand how market research helps in identifying customer and con...

MARKET RESEARCH AND SAMPLING  MONDAY, JANUARY 20TH, 2025 LEARNING OBJECTIVES Learners will be able to; Explain the purposes of market research in identifying key market features (size, growth, competitors). Understand how market research helps in identifying customer and consumer characteristics, profiles, wants, and needs. Analyze real-world examples of market research and its impact on business decisions. ESSENTIAL QUESTIONS How does market research help businesses identify key market features such as size, growth, and competitors, and why is this critical for decision-making? In what ways does understanding customer and consumer characteristics, profiles, wants, and needs through market research impact a business’s ability to succeed in a competitive market?  What is Market Research? Definition: The process of gathering, analyzing, and interpreting information about a market. Purpose: ○ Identify market trends and opportunities. ○ Reduce risks in decision-making. ○ Understand customer needs and behavior.  Opening Question "Why do businesses need to understand their market and customers?"  Main Features of a Market Market Size: Total sales or potential sales in a market. Market Growth: The percentage increase or decrease in market size over time. Competitors: Businesses offering similar products or services. Visual: Graph or chart showing market size/growth trends. Customer and Consumer Characteristics Key Aspects to Identify: ○ Demographics: Age, income, gender, etc. ○ Psychographics: Interests, lifestyles, values. ○ Wants and Needs: What motivates purchasing decisions? Example: Create a simple customer profile (e.g., teenagers for a clothing brand). Group Work - Market Research Case Study Task: ○ Identify the market features based on the case study. ○ Create a customer profile, including characteristics, wants, and needs. ○ Present findings in a 2-minute pitch.  Tuesday, January 21st, 2025 LEARNING OBJECTIVES Distinguish between primary and secondary research. Understand the main features, advantages, and disadvantages of each type of research. Apply knowledge to analyze and recommend appropriate research methods for different business scenarios. ESSENTIAL QUESTION How can businesses use different methods of market research to effectively understand customer needs and make informed decisions? Opening Question "If you were starting a business, how would you gather information about your potential customers and competitors?"  Primary vs. Secondary Research Primary Research: ○ Definition: First-hand data collection (e.g., surveys, focus groups). ○ Features: Tailored to specific needs, up-to-date, but costly and time-intensive. Secondary Research: ○ Definition: Use of existing data (e.g., reports, industry statistics). ○ Features: Cost-effective, quick, but may be outdated or less specific. Usefulness of Primary Research Advantages: ○ Customized to the business’s needs. ○ Provides insights into customer behavior. ○ Helps test specific ideas or products. Disadvantages: ○ Expensive and time-consuming. ○ Potential bias in data collection. Usefulness of Secondary Research Advantages: ○ Low-cost and easily accessible. ○ Provides a broad view of the market. ○ Useful for understanding general trends. Disadvantages: ○ May lack specificity or be outdated. ○ Reliability of sources can vary. Quick Recap and Exit Let us Recap What is primary research? What is secondary research? When might a business use each type? Write on a stick note; One thing they learned about research methods. One question they still have or a scenario where they’d apply their learning.  Wednesday, January 22nd LEARNING OBJECTIVE Understand the need for sampling in market research and its limitations. Analyze and apply sampling methods to real-world scenarios. ESSENTIAL QUESTION What is sampling and why is it important in market research? Let us Start "Primary Research" and "Secondary Research"  What is Sampling? Definition: Selecting a representative group of people or data to analyze instead of studying the whole population. Why Sampling is Needed: ○ Saves time and cost. ○ Enables quicker decision-making. ○ Practical for large populations.  Types of Sampling Random Sampling: Everyone has an equal chance of being selected. Stratified Sampling: Population divided into sub-groups, and samples are taken from each. Quota Sampling: Sampling based on specific quotas (e.g., age, gender). A market research team wants to collect opinions from 1,000 customers of a national retail chain. They are considering using different types of sampling to select a sample of 100 customers. a) Define each of the following sampling methods: Random sampling Systematic sampling Stratified sampling Quota sampling b) Explain one advantage and one disadvantage of using each sampling method in the context of this research. c) If the retail chain wants to ensure that customers from all age groups are equally represented in the sample, which sampling method would you recommend? Justify your answer.  Limitations of Sampling Potential Issues: ○ May not be representative of the whole population. ○ Small sample size can lead to inaccurate conclusions. ○ Sampling bias if the selection process is flawed.