Entrepreneurship - Market Research Methodologies

ppt entrep

1. Market Research

2. Market Research
The process of gathering, analyzing, and
interpreting information about a market,
about a product or service to be offered
for sale in that market, and about the
past, present, and potential customers for
the product or service.

3. Basic Questions in Market Research
Why – Purpose and objective for conducting the market
research
What- Determines the scope and the limitations of
market research to be conducted
Which – determines which segment of the market must
be studied; this must be the market segment that the
entrepreneur is eyeing
Who – identifies who among the members of the
selected market segment will participate in the market
research.

4. Basic Questions in Market Research
When – determines the time and timing of the
research. This is critical for entrepreneurs whose
product or service will be offered to a time- constrained
market such as office workers.
Where- Pinpoints the relevant location of the market
research
How – Determines the methodology to be used for the
market research (e.g., survey, FGD, observation , etc.)

5. The Purpose of Marketing Research
It can address the following issues
Identify viable new products and services
Enable risk reduction
Identify market opportunities and threats
Determine the level of customer satisfaction
Pinpoint and anticipate market trends or change
Decide on the best advertising medium
Pre-test and post-test advertising and promotional
campaigns.

6. The Purpose of Marketing Research
It can address the following issues:
Evaluate the results of test marketing
Evaluate the result of packaging, brand name, and label
Determine consumer price awareness and sensitivity
Undertake location studies

7. Market Research
Methodologies

8. Market Research Methodologies
Sales Data Mining
Focus Group Discussion
Observation Technique
Survey Research

9. Market Research
Methodologies
SALES DATA MINING

10. Market Research Methodologies
Sales Data Mining
A process used by businesses to
turn raw data of other businesses into
useful information.
(quantitative research)

11. Case Example:
Hotdog Selling
A researcher observed and recorded the
following data in a store selling hotdogs.
1.Boy, aged 10, bought two hotdogs at 2pm
2.Girl, aged 8, bought one hotdog at 4pm
3.Man, aged 26, bought three hotdogs at
2pm

12. Market Research Methodologies
Sales Data Mining
Using the information from Case
Example, the data can logically be
arranged chronologically from 7am to
6pm otherwise known as data array.
The data can be further grouped into
intervals of two, three or four hours.

13. Market Research Methodologies
Sales Data Mining
Using the information from Case
Example, the data can logically be
arranged chronologically from 7am to
6pm otherwise known as data array.
The data can be further grouped into
intervals of two, three or four hours.

14. Market Research Methodologies
Sales Data Mining
On the other hand, the hotdog customers
can be further classified into male and
female customers. The can be sub
classified into small children (12 years old
and below), teenagers (13 – 19 years
Adults (20 and above)

15. Data Array
Grouped data that has been
'classified' and thus some level
of data analysis has taken place,
which means that the data is no
longer raw.

16. HOT DOG BOUGHT 1- HOUR TIME INTERVAL
(7am- 6pm)
TIME HOTDOGS BOUGHT
7- 8 AM 2
9-10 AM 5
11-12 NN 13
1-2 PM 8
3- 4 PM 11
5- 6 PM 6
TOTAL 45

17. After arraying and classifying data,
researcher can now do a frequency
distribution and construct a frequency
table. This table organizes data into
groups of values according to the most
logical characteristics

18. HOTDOG SALES SUMARY
TIME HOTDOGS
BOUGHT
MALES FEMALES
12 below13- 1912 above12 below13- 1920 above
7- 8 AM 2 1 1
9-10 AM 5 2 3
11-12 NN 13 7 2 3 1
1-2 PM 8 2 1 3 1
3- 4 PM 11 10 1
5- 6 PM 6 6
TOTAL 45 9 13 6 4 7 5

19. Commonly Used Graphs
Histogram
Frequency Polygon
Pie Chart

20. Commonly Used Graphs
Histogram or Bar Graph – Consists of series of
rectangles or bars.
Frequency Polygon – Constructed by making
frequencies on the vertical axis with a dot
corresponding to the value on the horizontal axis.
Pie Chart – Circular graph divided into sections
that represent the relative frequencies or magnitude
of the grouped values.

21. Case Example:
Hotdog Selling
1.What is the best time to sell hotdogs?
2.What is the total hotdog bought in 2-
HOUR TIME INTERVAL (7am to 6pm)?
VARIABLES:
1.Number of Sold Hotdogs
2.Time

22. HISTOGRAM
0
5
10
15
20
25
7 - 10 am 11- 2 PM 3- 6 PM

23. FREQUENCY POLIGON

24. PIE CHART
20.00%
53.33%
26.67%

25. Cross Tabulation
The interpretation of data does not
end with generating a frequency
table and graph. In order for the
data to be more useful to
entrepreneur, a cross tabulation is
highly recommended.
Data tables that present the results
of the entire group of respondents,
as well as results from subgroups of
survey respondents.

26. HOT DOG BOUGHT 1- HOUR TIME INTERVAL
(7am- 6pm)
TIME 12 below 13- 19 20 above Sum
7- 10 AM 0 0 7 7
11- 2 PM 12 4 4 20
3- 6 PM 1 16 0 17
TIME 12 below 13- 19 20 above Sum
7- 8 AM 0.00% 0.00% 100.00% 100.00%
9-10 AM 60.00% 20.00% 20.00% 100.00%
11-12 NN 5.88% 94.12% 0.00% 100.00%

27. Market Research
Methodologies
FOCUS GROUP
DISCUSSION

28. Market Research Methodologies
Focus Group Discussion
FGD is one of the most common
qualitative research tools. It is effective
in extracting consumer and non-
consumer experiences regarding
products, places, or programs. This
method can also be used for
generating initial insights

29. Market Research Methodologies
Focus Group Discussion
The FGD can be used to address substantive
issues such as:
1.Understanding consumers’ perceptions,
preferences, and behavior concerning a
product.
2.Obtaining impressions of new product
concepts
3.Generating new ideas about older products

30. Market Research Methodologies
Focus Group Discussion
4. developing creative concepts and copy
material for advertisements
5. securing price impressions
6. obtaining preliminary consumer reaction to
specific marketing programs.

31. Market Research Methodologies
Focus Group Discussion
Gathering information together with
people from similar backgrounds or
experiences to discuss a specific topic
of interest.

32. Market Research Methodologies
Focus Group Discussion
FGD is an interview by a facilitator of a
small group of people that normally lasts for
an hour and half up to three hours. The
participants are selected because of their
knowledge about the topic. The objectives
must be clear and precise. It takes a great
deal of planning from the researcher’s end
to ensure that objectives set are met.

33. Market Research Methodologies
Focus Group Discussion
There are four key decisions to be made:
1.Respondent selection
2.Sample size
3.Data gathering
4.Data analysis

34. Market Research Methodologies
Focus Group Discussion
Respondents selection includes:
1.The Definition of the respondents
2.The classification of the respondents
3.The screening of the respondent

35. Market Research Methodologies
Focus Group Discussion
The number of respondents per group should range from six to
eight depending on the skill of facilitator and the topic being
discussed.
If the number falls below six, the likelihood of generating a
momentum and group dynamics necessary for a good discussion
will not likely happen.
If the group exceeds eight, it may be to crowded, resulting in the
passive participants of some respondents and a discussion which
is not as cohesive

36. Market Research Methodologies
Focus Group Discussion
Data Gathering method in FGD involve:
1.The selection and preparation of the venue and equipment
2. The formulation of the discussion agenda
3. a facilitator who is very skilled in moderating and possesses the
ability to draw out significant insights from the participants

37. Market Research Methodologies
Focus Group Discussion
Data Analysis includes:
1.The integration of the information gathered
2.As well as some observations and respondent behavior
3.A listing of recommendations and report writing

38. Steps in Conducting Focus Group
Discussion (FGD)

39. Steps in Conducting Focus Group
Discussion (FGD)

40.  In analyzing an FGD, the researcher should compare and
contrast all points raised by the different respondents and
note from what point of view they are coming from. The
researcher must summarize the points where the
participants strongly agreed upon or disagreed on about
an issue. The researcher must also write down quotations
that seem particularly relevant to his her identified
objectives and must group similar comments together in
order to identify participants’ preferences.

41. Market Research
Methodologies
OBSERVATION
TECHNIQUE

42. Market Research Methodologies
Observation Technique
Observation technique is probably one of
the best ways of gathering data about
customers in their natural setting without
having to interact or talk to them

43. Market Research Methodologies
Observation Technique
The process of observing people as they
go about their usual activities such as
buying and using products and services
and assessing how they behave.

44. Conditions for Conducting Observation
Techniques
1. The needed information must be observable or
inferable from the behavior that can be observed.
2. The subject matter contains some sensitivity
needing detached observation.
3. The behavior of interest must be repetitive,
frequent, or predictable in some manner.
4. The behavior of interest must be of relatively
short duration.

45. Advantages of Observation Research
1.It allows the researcher to see what customers
actually do rather than rely on what they say
they do.
2.It allows the researcher to observe customers
in their natural setting
3.It does not subject the researcher to the
unwillingness of customers or their inability to
reply to certain questions
4.Some information is better gathered quickly
and accurately through observation

46. Disadvantages of Observation Research
1.The researcher can only see the outside behavior
of the customer, but cannot determine the inner
motivation of the customer.
2.The researcher cannot get the reason behind the
behavior
3.The researcher can only focus on the “here and
now”, it cannot cover the past nor cover the
future.
4.And finally, the observation technique may border
on the unethical because the respondents have
not agreed to be observed.

47. Two Types of Observation Technique
1.Human observation – humans
observe the events as they
happen
2.Mechanical observation –
mechanical devices are used to
record events for later analysis

48. Guidelines in conducting observation
research:
1.Determine the pre- observation
objectives
2.Prepare your pre- observation tips
a. Prepare and clarify your observation
points and issues
b. prepare your observation materials
c. identify the persons to be observed
d. position yourself strategically without
being noticed.

49. Guidelines in conducting observation
research:
3. Focus on what you want to
observe
a. is it customer demographics?
b. customer buying behavior?
c. customer usage behavior?
d. and other customer
information

50. Guidelines in conducting observation
research:
4. Observation Proper
a. observe keenly and listen intently
b. be mindful of the surrounding
c. be alert for obvious movements
d. be sensitive to subtle movements
e. look at the customer when the customer is
not looking
f. Do not be obvious
g. observe and take note of other things that
you feel are important.

51. Guidelines in conducting observation
research:
4. Post- observation tips
a. review your notes
b.make sure that floe is correct
c. tabulate what needs to be tabulated
d. interpret and analyze your data
make formal report

52. Advantage and Disadvantage of Using
Observation Technique
Advantage Disadvantage
1. See customers actually do. 1. Cannot get the reasons behind
the behavior
2. Not subject to customers’
unwillingness to reply to certain
questionnaire
2. Can only focus on the “here
and now”
3. Information are gathered
quickly
3. Unethical

53. Market Research Methodologies
Survey Research
The most preferred instrument for in-
depth quantitative research. A research
methodology where the respondents
are asked a variety of questions which
are often about their personal
information, motivation, and behavior

54. Market Research Methodologies
Survey Research
These can be done via:
•Direct Mail
•Phone
•Internet or email
•Face to Face or through Web

55. Market Research Methodologies
Survey Research
Probably the most popular type of survey
`research is the Usage, Attitude and Image
(UAI) survey, which I intended to derive
market awareness, market size and share,
product usage, and preference, customer
interest and customer image

56. Important Concerns for Survey Research
Sampling Technique
Sample Size
Questionnaire Design

57. Important Concerns for Survey Research
Sampling Technique
Identification of the specific
process by which the entities of the
sample have been selected.

58. Important Concerns for Survey Research
Sampling Technique
Probability Sampling - The selection of a sample
from a population, when this selection is based on
the principle of randomization, that is, random
selection or chance.
Non-Probability Sampling - A method of selecting
units from a population using a subjective.

59. Important Concerns for Survey Research
Questionnaire Design
The practice of organizing
customers into specific groups
possessing similar goals or
characteristics.

60. Guidelines in constructing your own research
questionnaire:
The questions, in their totality, should be able to elicit
all necessary information required in the research.
Each question should be clear and definite
Each question should cover one topic at a time
Each question should be presented in a neutral manner
Each question should be translated into the dialect
which the target respondents are familiar with

61. Important Concerns for Survey Research
Sample Size
The number of participants
or observations included in a
study.

62. Steps in Conducting survey Research

63. Customer Profiling
The process of designing the format and
questions in the survey instrument will
be used to collect data about a
particular phenomenon

64. Methods of Customer Profiling

65. 1. Demographics – The customer were categorized
based on the following:

66. 2. Psychographics – Defines the customer’s motivation,
perceptions, preferences, and lifestyle.
a. Motivation – Roots of the customers’ needs and wants.
b. Perception – Refers to the way a person chooses to receive or
interpret information from the external world.
c. Preferences - Refers to certain characteristics any consumer
wants to have in a good or service to make it preferable to him.
d. Lifestyle - The typical way of life of an individual, group, or
culture.

67. 3. Technographics – Classifies people according to
their level of expertise in using a product or service.

68. Application of Customer Profiling:
1. Develop a product or service to test out in the
marketplace.
2. Profile the different types of customers in a given
industry or area as to their needs and wants.

69. Market Segmentation
Customers with similar needs and wants and
similar willingness and ability to pay can be
grouped into one customer segment
Within this customer segment, we can have
fine cuts. We can have different customer
sub- segments. Within these sub segments,
we can even have finer and finer cuts.
Therefore, we can produce products and
services that are highly specialized for any
type of consumer segment.

70. Market Aggregation
This refers to the concept of market
segmentation that assumes that most
consumers are alike.
Some entrepreneur prefer to appeal to as
broad a market as possible. They want market
aggregation rather than market segmentation.
They prefer to deal in commodities like rice,
bread and water that appeal to market
aggregates rather than market segments
 

71. Market Mapping
Refer to the process of using a
graph to plot competitors and their
products to understand competitor
behavior and spot a gap in the
market.

72. Market Mapping
Similar to sales data mining, market mapping
refers to grouping customers and products
according to certain market variables. One can
use one or a combination of demographics,
psychographics, and technographics to create
market map.

73. Market Mapping
The purpose of market mapping is to provide the
market analyst a better understanding of the
market as a whole and to paint a clearer
picture of where the different competitors are
relative to the different market segments.
Market mapping would also allow entrepreneurs
to discover market segments that are
relatively unserved or uderserved. They could
then develop products and services that fulfill
the gaps in the marketplace.