Primary and Secondary Research in Marketing

aboriginal and subaltern query in foodstuffingCritic onlyy analyse the effectiveness of ancient and supplemental look applied to yield emergence (looking at qualitative and vicenary question).Market enquiry shadower be unders tood in considerations of how the activity is carried reveal, designing questionnaires, planning respondent samples, regularitys of info sight and analysis and so forth in an other(a)(prenominal) words the techniques of the discipline. The purpose of securities industry look into is to assist and improve grocerying decisions selecting the optimum alternative or correct setting the decision- do agenda, i.e. what be the very tradeing issues facing us? In whatever field, the basis of good decision making is having effective and dead-on(prenominal) cultivation hireable and victimisation it accordingly.Almost any instruction compulsory in or contributing to foodstuffing decision making and the methods utilise to acquire that infor mation, can be considered to be market enquiry but, as a distinct and specialized activity, it is the provision of information more or little the market that is usually the central concern. People and focalizements regularly lead to under subscribe the markets that they aim themselves in, including the needs of consumers that make up up these markets. This understanding can be transcendent and based on greens aesthesis, where many successful decisions have been and spread over to be based on no oftentimes(prenominal) than instinct.However, in agonistic markets where implementing a decision whitethorn require major financial resources and where the cost of failure be high, thither is a need for decision making based on more rigorous and reliable selective information. to boot, many features of fresh markets and marketing such as consumer diversity, internationalization and the ever accelerating pace of modification, annex indistinctty and make the informal and i ntuitive surfacees to understanding less secure.The more formal techniques of market enquiry, which have been developed and matured over the give-up the ghost few decades, popularly offer a basis for increased bureau in decision making and so reduce some of the risks that unendingly allow be present in markets. The primary purpose for market question is risk aversion, to understand what the market wants, and not just what a few customers want and reduce the risk of developing the wrong ware.THE import OF PRODUCT DEVELOPMENTProduct increment is the phase in which the organisation holds if it is technically feasible to produce the product and if it canbe produced at be low nice to make the concluding price reasonable. To testits acceptability, the idea or concept is born-again into a type, or go bading model. Concept cars for manikin are mappingd in the suppuration of innovativevehicles. The pattern should reveal tangible and intangible asset attributesassociated with the product in consumers minds. The products design, mechanicalfeatures and intangible aspects must be linked to wants in the marketplace.This implicates the service aspects of the product, which are a vital comp cardinalntof many products. Failure to determine how consumers feel or so the productand how they would apply it may lead to the products failure.For example, the Sinclair C5 electric buggy car, was developed as a serious on-road, single seater car for city or country design. However, drivers matt-up unsafe in a small buggy, and campus students ended up using the remaining stocks on-pavement runab show ups.The development phase of a new product is much lengthyand dearly-won thus a relatively small scrap of product ideas are put intodevelopment. If the product appears sufficiently successful during this phaseto merit testing, and so during the latter part of the development phasemarketers begin to make decisions regarding mark offing, packaging, labelling,pric ing and promotion for habit in the test marketing phase.With this in mind we can at once move on to talk about theeffectiveness of the use of primary and tributary look in productdevelopment.COLLECTING DATAThere are twain types of info entreaty methods, they areprimary selective information realizeion and secondary data array.Primary Data Collection this type of datacollection are usually observed and put down or self-possessed directly fromrespondents. This type of data must be gather by observing phenomena orsurveying respondents. Primary data collection can be deemed as bespoke andtherefore quantify consuming and costly.This motion is more lengthy and complex, it is typicallymore costly, involving experimentation, sampling, survey methods, andquestionnaire construction. The acquisition of primary data often requires anexperimental approach to determine which variable or variables caused an even offtto occur.Experimentation this involves keeping certainvariables con stant so that the effects of the experimental variables can bemeasured. For example, when Apple tests a change in its AppleWorks wordprocessing computer program, all gross sales and marketing variables should be heldconstant except the change in the program.Sampling by systematically choosing a limited numberof units, or sample, to represent the characteristics of a keep down creation,marketers can project the reactions of a count market or market segment. Theobjective of sampling in product development, therefore, is to selectrepresentative units from total population. Sampling procedures are used instudying the likelihood of events based on assumptions about the afterlife.Survey Methods This includes interviews by postal service,e-mail, or telephone and personal interviews. Selection of a survey methoddepends on the nature of the riddle, the data needed to test the hypothesisand the resources, such as funding and personnel that are available to the interrogationer.Question naire Construction A careful constructedquestionnaire is essential to the success of any survey. A questionnaire is abase written document for interrogation purposes that provides the questions and thestructure for an interview or self-completion and has provision forrespondents answers. Questions must be knowing to elicit information thatmeets the studys data requirements.Observation Methods This method enables a interrogationerto constitution respondents overt behaviour, taking note of physical conditions andevents. Direct contact with respondents is avoided instead, their actions areexamined and storied systematically. Observation is straightforward and avoids acentral problem of survey methods motivating respondents to state their truefeelings or opinions.Secondary Collection Data These types of dataare normally compiled inside or impertinent the organisation for some purpose otherthan the current investigation. Secondary data include general reportssupplied to an enterpri se by various data services. Such reports index concernmarket share, retail inventory directs and consumer buying behaviour. Commonly,secondary data is already available in private or public reports or have beencollected and stored by the organisation itself. Because secondary data arealready available, which does save valuable time and money, they should beexamined prior to the collection of any primary data. Marketers often begin themarketing interrogation for product development by gathering secondary information.They may use available reports and other information from both internal andexternal sources to identify a marketing problem. interior(a) sources of secondary data can contribute to productdevelopment. For example, an organisations marketing databank may containinformation about past marketing activities, such as sales records and queryreports that can be used to test hypothesis and pin efflorescence problems.Organisations accounting records are in addition an excel lent source of data, butstrangely enough tend to be overlooked. The large bulk of data that anaccounting department collects does not automatically flow to the productdevelopment area.Secondary data can also be retrieved from periodicals, nose countreports, administration publications, the World Wide weave and unpublished sources.Periodicals such as Investors chronicles, Marketing, The Economist, Campaign,Marketing Week, Wall Street Journal, and Fortune, print general informationthat is inspection and repairful for defining problems and developing hypothesis.Other external sources of secondary data are Trade journals,trade associations, international sources, commercial sources, governments,books in print, periodical indices and computerized literary productions retrievaldatabases.TYPES OF MARKET RESEARCH METHODSBroadly speaking there are deuce types of marketing enquirymethods, they are qualitative and quantitative methods. The names describe the introductory diversity in th e results. duodecimal methods use samples large enoughthat there is statistical agency in the results. Qualitative methods usevery small samples with no statistical significance. A assoil check up onk planincludes both categories of search. The mix depends on the stage ofdevelopment, the search objectives available funds, and other variables.Often, qualitative such as a concentrate on assemblage can be used to better identify what the issues are to do with a new product. quantitative research is then employed to determine how prevalent the issue or need is.Qualitative research is the term applied to research that is considered wildcat orconceptual. Qualitative research get out provide context,insights, and ideas for more research. The idea for the use of this type of research method is to get the participants to talk about their experiences,give opinions about situations, and to react to scenarios or prototypes. The basic characteristics of qualitative research are, broad objectives small samples, results tend not to be generalizable or target population and it is best used early in order to identify issues and again later in the process to validate. The by-line methods under qualitative methods are the most commonly used. They are redirect examination of secondary information, heighten groups and related techniques (brainstorming sessions), and observations/ ethnographic studies (insetting where the product is actually used.Quantitative research is the term applied to researchthat is considered conclusive. A investigator efficiency use quantitative research totest hypothesis, describe the market or target population characteristics, andcheck relationships among variable. The results lead to formal conclusions andrecommendations to inform decision-making. The idea is to get enough responsethat the research will feel confident that the results reflect the market.The basic characteristics of quantitative research aredefined objectives that includ e hypothesis, focused research design identifieswho, how, what, why and when, large enough sample to allow for generalization(projection of results), and regardt of the research.The most common quantitative research methods are Surveys,which could be mail, telephone, online usability studies field testing science lab testing and conjoint analysis. Quantitative research is alsoconcerned with measuring aspects of a market or the population of consumersmaking up the market. This includes soft phenomena such as consumer attitudesas easily as the hard things such as market size, brand shares, buy frequencies etc.Quantitative research and sampling Quantitative data on a market or consumer group can be pick uped with carrying out a census on the general populace, so as to obtain the relevant measures from every single consumer or (in the case of business-to-business research) player in the market. In practice market research with a census is very rare for one thing it is usually proh ibitively expensive to obtain data from every individual (the government only carries out a population census once every 10 years) and even when the money is made available the timescales involved are likely to be too long to meet commercial deadlines. Quantitative market research is, therefore, nearly always based on more or less rigorous sampling methods which have in common the assumption that the data from samples can be taken to represent, inwardly estimated levels of accuracy, the population or universe from which they are retrieved from.Types of Quantitative Data The range of information which can be and is collected by dint of quantitative research is enormous if not infinite. In relation to deciding how data should be collected, all possibilities can be slotted into a dewy-eyed threefold classification. They are market measure customer profiles or sectionalization and attitudinal data. Market measures quantify and describe a market. Common examples include market and se ctor size shares of the market held by suppliers or brands penetration levels (what simile of all potential consumers own or buy a product) barter for and consumption frequencies patterns of consumption and seasonality.A vital concern in any marketing is knowing and understanding the potential customer base, what type or organisations are they? What other types of products or services do they own or use? What is necessitate to meet this need is customer profiling or segmentation data and it is quantitative in nature because reliable breakdowns are needed for the whole market or populationAdditionally attitudinal data is also used in a quite general sense to cover concepts such as awareness, perceptions, beliefs, evaluations,preferences, and propensities. In other words they are, in their various forms, subjective and reside in the minds of individuals (attitudinal data is collected in business-to-business research but in the end it is still attitudes of individuals within organi sations or companies, as such, do not have attitudes). Much of market research is concerned with attitudes and attitude measure because attitudes are assumed to influence if not determine behaviour understand consumer attitudes and the marketing may mould consumer prime(a) in the products favour.Level of Measurement Depending on the stage of product development, research measurement can be used to focus on token market levels and use techniques appropriate for find out the possible level of satisfaction that will be gained from using the product. For example,manufacturers passing on sales figures, in confidence, to a third party (e.g.trade association) which collates them. Retail sales and brand shares are likely to be collected most hi-fily at the retail level through a retail audit. Patterns of consumption and profiles of consumers, however, will require data collection at the final level through some type of interviewing programme.The market level from which data is required, therefore, has an important design on the research methodology. The size of a market, for example, can be estimated by grossing up the consumption levels among a sample to the total population within the market. With adjustments (e.g. for imported products, shrinkage through the retail chain, etc) estimates also can be made of manufacturers and distributors / retail sales. However, in making such estimates various uncertain assumptions nearly always have to be made and this affects the reliability of the final data.Frequency of Measurement Market research data is often required at only a single pane in time the current market, the shares held now by each brand, the profile of current consumers etc. In such cases the research methodology is commonly intentional as a one-off and the project(i.e. product development). It is also possible that at some future date it may be decided be the organisation to collect the same sort of data again and a similar research design maybe used but at the time the early project is considered this not to be of significant importance at the time. In terms of research expenditure, most market research budgets are taken up buying repeat measures through continuous research.Continuous data allows important measures to be tracked overtime movements in brand shares for example show progress (or decline) against competitors and changes in the trend provide an early warning to take action. Discrete trends also can be interrelated to other measures taken in the continuous research programme (e.g. media exposure) or breakaway variables such as economic indicators and all the data ca be integrated into a model which allows for predictions to be made or enables what if questions to be answered. Continuous data can be collected from matched samples (each made up of contrary respondents) and in some applications this is the preferred approach. Due to the high costs associated with selecting continuous research, much of the wok tends to be syndicated with costs shared among a number of subscribers.The nature of the respondent The location of potential respondents may for example, influence any decision to use phone or visit interviewing. Other considerations may favour face-to-face methods but if the selected sample of say 50 potential buyers of a product is spread allover Western Europe, phone interviewing maybe rulerd out if an important part of the sample is seldom arrange there e.g. older tribe. Respondents personal attributes may also influence the research design.Self completion surveys are not appropriate among an illiterate or semi-literate respondent group or where interest in the subject of the research is likely to be low. Similarly, the wording of questions may need to reflect respondents style skills and familiarity with terminology computer jargon may have a place in a survey of IT releaseers but not among the general population. Where as is common, the sample is mixed in these respects, the des ign must actually work lowest common denominator assumptions. Access to communications and the status of respondents are also relevant to an appropriate design. While most business-to-business respondents can be contacted by phone, this will be less the case where shop floor attitudes need to be established or where workers are very mobile. In such cases respondents may need to be recruited away from their place of work.THEDIFFERENCES BETWEEN soft AND QUANTITATIVE RESEARCH IN PRODUCTDEVELOPMENTThe roots of the words qualitative and quantitative imply that one is based on quality and the other on quantity. There is some truth in this. Qualitative research is centrally concerned with the understanding rather than the measurement of things. The trouble is the lack of measurement means that it is never possible to be absolutely sure that the findings are correct.It is his inability to validate qualitative research that causes some consternation in relation to its use in product develop ment. For example, the government recently licensed little qualitative research as it is worried that the findings would not stand up to public scrutiny. More recently, though, since the 1997 General Election, interest by government in focus groups and similar had become a news item. The focus on quality and small total of respondents allows the research consultants to collect much of the data themselves in contrast to qualitative surveys where the numbers of interviews are too great for any single person to make more than a dent.One of the strengths of qualitative research is that it deeply involves experienced and skilled practitioners in the subject who can lift data and turn it into creative research findings. Here too there are problems as well as advantages. Much of the information collected through qualitative research depends on the skills of the practitioner.Small numbers of respondents and just one or two pot carrying out the interviewing allows more open-ended questio ns than in quantitative surveys. Open-ended question is the fabric of qualitative researchers. There is no hard and fast rule as to the break in sample size between qualitative and quantitative research. Most researchers would agree that 30 or fewer respondents would sure enough constitute qualitative work.Others would argue that any sample much downstairs 200 interviews is verging on the qualitative method because such low numbers produce findings with extremely large bands of error.According to Goodyear (1990), qualitative and quantitative research differs in four important ways, they are in the type of problem that each can solve the methods of sampling the methods of sampling the methods and style of assembling information and the approach to and techniques of analysis.THE RESEARCH CYCLEThe research cycle is different depending on what stage of product development the research is done for. A typical research cycle would include most or all of the steps mentioned below. These steps should be regarded as categorised as a combination both primary and secondary research.They areSecondary literary works Search An astonishing amount of information exists here, or is macrocosm collected about consumer needs, wants their behaviour, about markets, prices, opportunities, etc. A list of questions and assumptions is required at this stage to identify what customers would see in the product. One could use the profit to locate studies that relate to it. This is an inexpensive way to prepare for the other research steps. At this point the primary concern for the researcher are,opportunities, and potential of the product, and identifying information to help in formulating plans.Exploratory Focus Groups These groups enable the researcher to hear about peoples needs, wishes, current products (especially the strengths and weaknesses), how they compensate for what they dont have, attitudes about the markets, etc. At this point the researcher is still thinking about oppo rtunities, potential, etc, and looking for information to spring up plans.Ethnographic Study One may want to observe people using related products and services in real time. This helps clarify what is gathered in research studies and heard in focus groups. At this point the latter of opportunities still holds.Large Scale Survey The survey allows one to collect quantifiable information about assumptions, questions raised by the focus groups, planning, and general market conditions of the product from the general populace. At this point the researcher would already have concrete assumptions about potential customers, their needs, and the market in general. In this situation one is looking to verify those assumptions and ideas, with statistical confidence. Additionally one may want to conduct surveys throughout the development process to clarify issues, help you make choices etc.Usability testing and Laboratory runneling the test here helps one to refine various features of the prod uct as it is being developed. Are the buttons in the right place, etc? At this point a prototype is being built, according to the information already gathered through primary and secondary sources using qualitative and quantitative methods of research.As the major components of the new product are being put together, its best to test their functionality with real customers.Prototype Focus Groups These groups test the researchers execution of plans gathered previously. For example, do the features of the prototype meet their needs of the market? At this point specific information with regard to feedback about the look, feel, feasibility,etc of the prototype is gathered. (The researcher should expect at least(prenominal) two or three rounds of groups to refine the new product).Field Test This enables the new product to betested. Users put the prototype through its paces. One might want to makesure that the product is tested in a variety of settings to make sure theproduct goes throug h the range of possible experiences. At this point the producthas been designed and built. Now is to see how good the product is with regardto its market category, in which considerable evaluation has already beencarried out.SUMMARYAND CONCLUSIONThis paper has looked at the meaning of product development, thetwo types of data collection methods namely, primary data collection andsecondary data collection methods. Under primary data collection itidentifies, the type of primary data collection, namely, experimentation,sampling, survey methods, questionnaire construction and observation methods.Under secondary data, we have determine the use of periodicals, census report,government publication, trade journals and the World Wide Web as being the mostused method under this type of data collection. We have also expound thetypes of market research methods, namely, qualitative and quantitative researchmethodsUnder quantitative research we have looked at sampling, the types of quantitativ e data used, level of measurement, frequency of measurement, and nature of respondent or potential customers for the new product. Additionally, we have also identified a few differences in the use of research methods for product development such as the measurement of the reason outd findings for a research etc. Finally, we looked at the research cycle with regard to what point of the cycle a new product would be evaluated and tested in real markets. The research cycle tells us about the use of secondary literature search, exploratory focus groups, ethnographic study, large scale survey, usability testing and laboratory testing, prototype focus groups, and field testing in product development.It is worthwhile to conclude here that although secondaryresearch, which is based on already existing data or information i.e. datafrom primary research is one that is collected directly from the source, whilesecondary research builds on primary research already gathered, one should notethat in formation gathered for secondary research might not be as accurate asone might expect. The reason for this is that, a secondary data collectionresearcher might not have been part of the primary research team, and thereforethe core of the results of secondary research to do with quantitativeanalysis might prove to be inaccurate in its use for product development.Further work is required to develop this approach to see if the potential benefits can actually be realised in practice. Additionally, there should be a greater consideration of the issues involved in secondary analysis of single, multiple, and mixed data sets. 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