ENT_SG_Unit4_Lesson2_Final (1) PDF - Market Research Methodologies

Unit 4: Market Need Analysis Lesson 2: Market Research Methodologies Contents Engage 1 Introduction 1 Objectives 1 Explore 2...

Unit 4: Market Need Analysis Lesson 2: Market Research Methodologies Contents Engage 1 Introduction 1 Objectives 1 Explore 2 Explain and Elaborate 3 Market Research Methodologies 3 Choosing the Right Market Research Methodology 4 Qualitative Research Methods 5 Quantitative Research Methods 7 Extend 8 Activity 8 Evaluate 9 Wrap Up 11 Bibliography 12 Unit 4.2: Market Research Methodologies Engage Introduction Fig. 1. Interview Conducting market research doesn’t stop at analyzing the needs and demands of the market. It involves complex processes that an entrepreneur must learn how to undertake. The various methods as to how market research is to be conducted will depend on the goals of the desired business. Find out the different options and costs of carrying out market research as you engage yourself throughout this lesson. Objectives In this lesson, you should be able to do the following: Learn the different methodologies used in market research. Apply the various market research methodologies in different business contexts. 1 Unit 4.2: Market Research Methodologies DepEd Competencies Screen the proposed solution based on viability, profitability, and customer requirements. ​(CS_EP11/12ENTREP-0b-c-5) Select the best product or service that will meet the market need. (CS_EP11/12ENTREP-0d-6) Explore 10 minutes Guide Questions Answer the following questions briefly and coherently: 1. What for you is the best approach in analyzing the needs of the market? 2. What considerations must be taken in assessing the viability of a product or service? 3. How important is market research prior to executing the desired business? 2 Unit 4.2: Market Research Methodologies Explain and Elaborate Market Research Methodologies Fig. 2. Market research It is true that vital information related to the market can only be obtained by conducting market research. Being able to conduct proper market research would enable the entrepreneur to implement smarter decisions on his own. But in order to do this, there are several ways that will allow the entrepreneur to gather information directly from the consumers. These market research methods are used to get the type of information about the consumers, the market, and even the competitors, which will greatly influence the decisions of the entrepreneur. Market research methodologies are advantageous for any business because these tools are effective at tapping into the actual needs and wants of the target market. Further, they encourage a healthy exchange of information with the consumers by primarily knowing their likes, preferences, and even their dislikes. 3 Unit 4.2: Market Research Methodologies Why are market research methodologies significant in building a business? Choosing the Right Market Research Methodology Being able to choose from various market research methods does not necessarily imply the need to pick them all. The methodologies to be chosen would depend on the objectives of the business and the cost of gathering data. In picking the right method available, the following points must be taken into account: 1. Pick a method that complements well with the business’ objectives. The option to be chosen in gathering data must resonate with the objectives of the business in order to save time and money. The methodology employed must allow the entrepreneur to collect information that will support the aims of his desired business. 2. Assess the information that is already available. Research and evaluate pieces of information that are already available on-hand or online. From there, identify the gaps that still need to be filled by choosing the right market research methodology. 3. Compare the various market research methodologies. When choosing the most appropriate methodology, making a comparison is helpful. Evaluate the usefulness or advantages of each method and identify which of them would be the most beneficial and least costly to the proposed business. 4. Calculate the total time for collecting and organizing research data. The amount of time to be spent in order to produce the necessary information will always vary according to the chosen market research methodology. Even though market research is an integral part of the implementation of a business, such must be done with minimum wasted effort and time. 4 Unit 4.2: Market Research Methodologies Review Tips in choosing the right market research methodology: Pick a method that complements well with the business’ objectives. Assess the information that is already available. Compare the various market research methodologies. Calculate the total time for collecting and organizing research data. Qualitative Research Methods Qualitative research is an important approach towards understanding the reasons behind the purchasing behavior and decisions of the consumers. This type of data-gathering research method is performed through observation techniques and unstructured questioning. It gives answers to the whys and hows of the decision-making processes of various consumers. Interviews Interviews are conducted in order to give entrepreneurs or businessmen the chance to deeply evaluate the areas of interest of the individuals they want to target. This method aims to give the precise characteristics of the audience that entrepreneurs want to understand, which will consequently help them in the development phase of their products and/or services. Example Basic Customer Interview Questions Situationer An entrepreneur is planning to provide a ride-hailing service in a province through the use of a mobile application. The target market of this project consists of students, employees, professionals, and other individuals seeking a convenient mode of transportation. The following questions were asked to the respondents through interviews: 5 Unit 4.2: Market Research Methodologies Questions Objectives How do you feel about the current This question aims to understand the actual transportation situation in your province? feelings of the respondent towards the transportation situation in his or her area. What mode of transportation do you take to This question aims to know the type of and from school or your workplace? transportation that is primarily used in the province. How much do you spend on transportation This question aims to know the estimated monthly? cost that an individual would likely pay for his transportation. What changes or improvements would you This question will help the entrepreneur in like to see in your province in the aspect of addressing the demands and needs of his transportation? target market. ​ ​Tip In conducting interviews, questions to be asked must be those that are relevant to the implementation of the proposed business. Focus groups Focus groups are usually conducted personally by entrepreneurs or market researchers. This type of methodology is meant to bring about a comfortable environment while discussing with the consumers their feelings towards a specific product or service. Focus groups are helpful in product testing and evaluation, advertorial and imagery assessments, and business conceptualizations. Online focus groups Similar to in-person focus groups, online focus groups are likewise performed to understand the thoughts and feelings of consumers towards a specific product or service, except that they are more convenient and cost-efficient to perform. In order to take advantage of this methodology, the entrepreneur must utilize the different social media 6 Unit 4.2: Market Research Methodologies sites to be able to observe the behavior of the consumers. Observations The observational approach of conducting market research comes in different types. The most common examples of observational research are usability testing, in-store observation, and mystery shopping. The primary advantage of adopting this methodology is that the entrepreneur can perceive the actual behavior or spending pattern of any consumer, as opposed to a user-reported behavior. Any researcher or entrepreneur can just simply watch consumers doing their grocery shopping routines in action. ​ emember R Qualitative research is a type of data-gathering research method performed through observation techniques and unstructured questioning. Quantitative Research Methods Quantitative research obtains the information that can be easily and quickly counted and statistically analyzed. This method enables the entrepreneur or the market researcher to test and validate the best course of action to be taken. The methodologies provided under this classification aim to ask the consumers for their opinions or feelings in a structured way. Survey research Surveys are a very popular method in gathering primary data. This type of market research methodology enables the entrepreneur to formulate questions that cover a variety of topics. Surveys are usually composed of open-ended and closed-ended questions depending on the needs of the project. It is highly recommended to use open-ended questions sparingly so as not to cause a lot of inconvenience to the respondents. Too many open-ended questions would give out invalid results because of the minimal responses taken from the respondents. 7 Unit 4.2: Market Research Methodologies Experiments or Field Trials This market research approach involves a scientific approach that includes the testing of specific variables. Tests can be performed in controlled environments or under natural settings. One example could be a businessman making two distinct packaging options for the consumers. In order to find out which of the two would bring about greater sales revenue, the businessman will deliver each product to selected test market stores where the individual sales performance will be accurately measured. Extend Activity Think of any business that you would want to pursue. List down the three most essential market research methodologies that you will use during the market research phase of your proposed business, and give the reason/s why such methodology is important. Proposed business: ____________________________________________ Methodology Reason/s 1. 2. 3. 8 Unit 4.2: Market Research Methodologies ​ uide G Choose only those methodologies that are highly beneficial for your proposed business. Under the right column, the reasons given must focus on the usefulness or relevance of the methodology chosen. Evaluate A. Answer the following questions based on your understanding of the lesson, as discussed above. 1. What are market research methodologies? 2. What is the relevance of resorting to market research methodologies in entrepreneurship? 9 Unit 4.2: Market Research Methodologies 3. What is the difference between a survey and a questionnaire? 4. How would you define “focus groups?” 5. What is the main idea behind qualitative research methods? B. Discuss five pros and cons of using interviews as a market research methodology. Provide your answers in the table provided on the next page. Pros Cons 1. 10 Unit 4.2: Market Research Methodologies Pros Cons 2. 3. 4. 5. Wrap Up ___________________________________________________________________________________________ Qualitative research ​is a type of data-gathering research method which is performed through observation techniques and unstructured questioning. Quantitative research refers to information that can be easily and quickly counted and statistically analyzed. 11 Unit 4.2: Market Research Methodologies Market Research Methodologies ___________________________________________________________________________________________ Bibliography Dollingner, Marc. ​Entrepreneurship: Strategies and Resources 3rd Edition. N ​ ew Jersey: Prentice Hall, 2003. FlexMR. “Modern Market Research Methods: A Comprehensive Overview.” Medium. Accessed on April 10, 2020. https://medium.com/@FlexMR/modern-market-research-methods-a-comprehensive- overview-a0b269356667​. Kotler, Philip & Gordon McDougall. ​Marketing Essentials​. Prentice-Hall Canada Inc., 1985. Kuratko, Donald. ​Entrepreneurship: Theory, Process, and Practice​. Taguig: Cengage, 2017. Petrescu, Maria, and Brianna Lauer. “Qualitative Marketing Research: The State of Journal Publications.” T​ he Qualitative Report​, September 2017. Accessed on April 10, 2020. https://nsuworks.nova.edu/tqr/vol22/iss9/1/. 12