Market Research-identifying potential sources of data

During this session we focused on identifying the potential sources of data that an organisation may require to enable them to make a decision. 

There are four main types of research designs:

1. Exploratory
2. Descriptive
3. Causal
4. Predictive

Exploratory research-this helps the firm to gather ideas and knowledge relatively quickly.  There are two types of exploratory research:

(a) Literature Survey-this is where the researcher searches through available data

(b) Experience Survey-this is where advice is sought from experts or consultants in the area.

Descriptive Research-a firm may require informaton in regards the characteristics of their customers-e.g. age, income, gender etc.  As part of the research project, the researcher may need to identify potential markets that may provide additional income to the company. The researcher may also require data in relation to the percentage of market share currently held by the company and its competitors. 

Causal Research-companies may conduct causal research to identify the cause and effect of such a relationship.  E.g. does A cause B to happen. 

Predictive Research-companies decide to use predictive research to try and identify the level of future sales for a particular product or service within the company.  Predictive studies can also be used in the test marketing of a particular product or service.

There are some common errors in the market research process.  These can be categorised as:

1. Problem definition errors
2. Informational errors
3. Experimental errors
4. Analysis errors

Problem definition errors-it is essential that the problem is well defined before market research actually begins. 

Informational errors-when a researcher is generating primary data there can be two types of errors.  These include sampling and non-sampling errors.  These will be discussed in detail later in the course.

Experimental errors-these type of errors occur when there is confusion over whether the independent variale caused the observed effect or whether it was due to an external influence and these were not controlled as part of the experiment.

Analysis errors-this error occurs when the researchers uses improper analytical techniques

There are two major types of marketing information.  These are:

(a) Primary

(b) Secondary

The final part of the session focused on how to control the total market research function.  The firm need to ensure that the following is in place:

1. Research accounts
2. Research audits
3. Research budget