Market

Research
 Firms and other business companies need
to understand their service offerings and their
customers to ensure that their services will be
adopted as solutions to consumer needs. In
order for the firms to recognize the needs of
the market or the customers, they need to
conduct market research.
 The Market Research or Marketing
Research Process can be defined as the
process of gathering, analyzing and
interpreting the information about the
products or the services to be offered for sale
to the potential consumers in the market.
There are different ways to collect the data.
The most important methods you can
consider are surveys, focus group discussion
and interviews.
DATA COLLECTION
is the most valuable tool of any type of research study. Inaccurate data
collection may cause mistakes and ultimately lead to invalid results.
TIPS in GATHERING DATA
• Organize collected data as soon as it is available
• Know what message you want to get across and then collect data
that is relevant to the message
• Collect more data
• Create more data
• Regularly run experiments or collect data* Challenge your
assumptions
• Set reasonable expectations
• Take note of interesting or significant data
 In this lesson, we will consider the three
different data collection techniques - SURVEY
(Questionnaire), INTERVIEW and FOCUS
GROUP DISCUSSION - and evaluate their
suitability under different circumstances.
SURVEYS
are the most common way to gather primary research with the use of
questionnaires or interview schedule. These can be done via direct mail,
over the phone, internet (e.g. Google) or email, face-to-face or on Web
(e.g. Skype or Viber). When designing or constructing your own research
questionnaire, remember the following guidelines. (Edralin, 2016)
• Keep it simple as possible.
• Make sure it is clearly appealing and easy to read.
• Cluster or block related questions.
• Move from complex questions to more specific questions.
• Make sure questions are concise and easily understood.
• Avoid questions that are difficult to answer.
• Make sure any response scales used are consistent with categories
that are mutually exclusive.
INTERVIEW
is one of the most reliable and credible ways of getting
relevant information from target customers. It is
typically done in personal between the
researcher/entrepreneur and a respondent where the
researcher asks pertinent questions that will give
significant pieces of information about the problem that
he will solve. The interview is also helpful even when
the business has already started because the customers'
feedback provides the entrepreneur a glimpse of what
the customers think about the business.
 Interviews normally last from 15 to 40
minutes, but they can last longer, depending
on the participants' interest in the topic.

In a structured interview, the researcher

asks a standard set of questions and nothing
more (Leedy and Ormrod, 2001).
 Personal interviews are the traditional
method of conducting an interview. It allows
the researcher to establish relationship with
potential participants and therefore gain their
cooperation. It generates highest response
rates in survey research. They also allow the
researcher to clarify indefinite answers and
when necessary, seek follow-up information.
 Telephone interviews are less expensive
and less time consuming, but the
disadvantages are that the response rate is
not as high as the face-to-face interview, but
considerably higher than the mailed
questionnaire.
FOCUS GROUP DISCUSSION
(FGD)
is an excellent method for generating and
screening ideas and concepts. It can be a
moderated group interviews and
brainstorming sessions that provide
information on user's needs and behaviors.
The following are considerations in the use of focus group
discussions in market research:
• The length of the session is between 90 and 120 minutes.
• Usually, conduct focus groups discussion with 8 to 10
participants per group.
• Assign an expert moderator / facilitator who can manage
group dynamics.
• Use a semi-structure or open-format discussion.
• Strive for consistency in the group's composition (for
example, it may not be advisable to have business
customers and retail customers in the same focus group,
their needs are very different)
The Marketing
Mix (7P's) in
Relation to the
Business
Opportunity
 Marketing Mix is a set of controllable and
connected variables that a company gather to
satisfy a customer better than its competitor. It
is also known as the "Ps" in marketing.
Originally, there were only 4Ps but the model
has been continually modified until it became
7P's. The original 4 P's stands for product,
place, price and promotion Eventually, three
elements have been added, namely people,
packaging and positioning to comprise the 7 P's.
The 7 P's of Marketing Mix
1. PRODUCT
Marketing strategy typically starts with the product. Marketers
can't plan a distribution system or set a price if they don't know
exactly what the product will be offered to the market.
Product refers to any goods or services that are produced to
meet the consumers' wants, tastes and preferences. Goods can be
categorized into business goods or consumer goods. A buyer of
consumer goods may not have thorough knowledge of the goods
he buys and uses. An example of services includes hair salons and
accounting firms. Services can be divided into consumer services,
such as hair styling or professional services, such as engineering
and accounting.
2. PLACE
Place represents the location where the buyer
and seller exchange goods or services. It is
also called as the distribution channel. It can
include any physical store as well as virtual
stores or online shops on the Internet.
 STAGES OF
DISTRIBUTION CHANNEL
1
RETAILER
PRODUCER WHOLESALER CONSUMER

2
PRODUCER CONSUMER
RETAILER

3
PRODUCER CONSUMER
Channel 1 contains two stages between
producer and consumer- a wholesaler and a
retailer. A wholesaler typically buys and store
large quantities of several producer's goods
and then breaks into bulk deliveries to supply
retailers with smaller quantities.
Channel 2 contains one intermediary. In
consumer markets, this is typically a retailer. A
retailer is a company that buys products from a
manufacturer or wholesaler and sells them to end
users or customers. In sense, a retailer is an
intermediary or middleman that customers use to
get products from the manufacturers.
Channel 3 is called a "direct-marketing“
channel, since it has no intermediary levels. In this
case the manufacturer sells directly to customers.
3. PRICE The price is a serious component of the marketing mix.
In the narrowest sense, price is the value of money in exchange
for a product or service. Generally speaking, the price is the amount
or value that a customer gives up to enjoy the benefits of having or
using a product or service. One example of pricing strategy is the
penetration pricing. It is when the price charged for products and
services is set artificially low in order to gain market share. Once this
is attained, the price can be higher than before. For Example, if you
are going to open a Beauty Salon, you need to set your prices lower
than those of your competitors so that you can penetrate the
market. If you already have a good number of market share then you
can slowly increase your price.
4. PROMOTION
Promotion refers to the complete set of
activities, which communicate the product,
brand or service to the user. The idea is to
attract people to buy your product over
others. Advertising, Personal Selling, Sales
Promotion, Direct Marketing, and Social
Media are examples of promotion.
5. PEOPLE
Your team, a staff that makes it happen for you, your audience,
and your advertisers are the people in marketing. This consists of
each person who is involved in the product or service whether
directly or indirectly.
People are the ultimate marketing strategy. They sell and push the
product of the marketing mix today. This is because of the remarkable
rise of the services industry. Products are being sold through retail
channels today. If the retail channels are not handled with the right
people, the product will not be sold. Services must be first class
nowadays. The people rendering the service must be competent and
skilled enough to that that the clients will patronize your service.
Therefore, the right people are essential in marketing mix in the
current marketing scenario.
6. PACKAGING
Packaging is a silent hero in the marketing
world. Packaging refers to the outside
appearance of a product and how it is
presented to the customers. The best
packaging should be attractive enough and cost
efficient for the customers. Packaging is highly
functional. It is for protection, containment,
information, utility of use and promotion.
7. POSITIONING
Positioning refers to a process used by marketers
to create an image in the minds of a market.
Solid positioning will allow a single product to
attract different customers for not same reasons. For
example, two people are interested in buying a
phone; one wants phone that is cheaper in price and
fashionable while the other buyer is looking for a
phone that is durable and has longer battery life and
yet they buy the same exact phone.
 Develop a Brand Name
Brand Name is a name, symbol, or other
feature that distinguishes a seller's goods or
services in the marketplace. Your brand is one
of your greatest assets because your brand is
your customers' over-all experience of your
business. Brand strategy is a long-term design
for the development of a popular brand in
order to achieve the goals and objectives.
Branding is a powerful and sustainable
high-level marketing strategy used to create
or influence a brand. Branding as a strategy to
distinguish products and companies and to
build economic value to both customers and
to brand owners, are described by Pickton
and Broderick in 2001.
 Commonly Used Branding Strategy

1) Purpose

"Every brand makes a promise. But in a market in

which customer confidence is little and budgetary
observance is great , it's not just making a
promise that separates one brand from another,
but having a significant purpose" (Allen
Adamson).
 How can you define your business' purpose?
According to Business Strategy Insider, purpose
can be viewed in two ways:

a. Functional. This way focuses on the assessments of

success in terms of fast and profitable reasons. For
example, the purpose of the business is to make money.

b. Intentional. This way focuses on fulfillment as it

relates to the capability to generate money and do well
in the world.
 2) Consistency

The significant of consistency is to avoid

things that don't relate to or improve your
brand. Consistency aids to brand recognition,
which fuels customer loyalty.
 3) Emotion

There should be an emotional voice, whispering

"Buy me". This means you allow the customers
have chance to feel that they are part of your
brand. You should find ways to connect more
deeply and emotionally with your customers.
Make them feel part of the family and use
emotion to build relationships and promote
brand loyalty.
 4) Flexibility

Marketers should remain flexible to in this rapidly

changing world. Flexibility allows you to adjust and
differentiate your approach from your competition.
According to Kevin Budelmann, "Effective identity
programs require sufficient consistency to be
identifiable, but sufficient variation to keep things
fresh and human" so if your old tactics don't work
anymore, don't be afraid to change. It doesn't mean it
worked in the past it may still work now.
 5) Employee Involvement

It is equally important for your employees to

be well versed in how they communicate with
customers and represent the brand of your
product
 6) Loyalty

Loyalty is an important part of brand strategy.

At the end of the day, the emphasis on a
positive relationship between you and your
existing customers sets the tone for what
potential customers can expect from doing
business with you.
 7) Competitive Awareness

Do not be frightened of competition. Take it

as a challenge to improve your branding
strategy and craft a better value in your
brand.