Problems relating to the marketing- this involves dealing with questions which, will help you to understand better both your customers and other information about the marketplace (e.g. competitors’ products and services) Market research is necessary to all organisations because, without it they would not able to identify customer requirements as well as the activities of its competitors. Also, organisations such as, Cadbury Schweppes need to use market research to find out these information before; they can develop their marketing strategy.
The use of market research Market research can be used for many purposes. It can be used to collect information about the market. Examples of information about the market include the following: analysing the market potential for existing products; forecasting future demands for existing products; assessing the market potential for new products; studying the market trends; analysing competitor’s behaviour and performance; and analysing the market shares.
Market research can be used to collect information about the product. Examples of information about the product include the following: finding out customer’s acceptance or rejection of new products; making a comparison of existing product in the market; forecasting new uses for existing products, finding out the technologies that may threaten existing products; and new product development. Market research can be used to collect information about the pricing in the market. Examples of information about the pricing in the market include the following: estimating and testing the price elasticity of demand; analysing the revenues, margins and profits; finding out customer perception of just or fair pricing; and identifying competitors’ pricing strategies.
Market research can be used to collect information about the promotion in the market. Examples of information about the promotion in the market include the following: finding out the effectiveness of advertising; finding out the effectiveness of personal selling; finding out the extent and effectiveness of sales promotional activities; and identifying competitors’ promotional strategies.
Also, market research can be used to collect information about the distribution in the market. Examples of information about the distribution in the market include the following: finding out the use and effectiveness of distribution channels; finding out the opportunities to sell direct; identifying the cost of transporting and warehousing products; and finding out the level and quality of after-sales service.
Qualitative and Quantitative information There are types of information which is gathered through market research. They are known as qualitative information and quantitative information. Qualitative information (also known as qualitative research) is based upon personal view and it is said to be sub-objective. Qualitative information involves descriptions that are made by a respondent in a survey, with regards to their opinions, attitudes, reactions, impressions and suggestions. This type of information can help Cadbury Schweppes to find out whether or not they have met the needs of their customers. Qualitative information can be collected in various ways including unstructured interviews, and focus groups (group discussions). Examples of qualitative information include: ‘I think that…’, ‘In my view…’, ‘I like …because…’, ‘Perhaps’, ‘Maybe it would if…’ and ‘Yes, but it does not…’
Quantitative information (also known as quantitative research) is based upon hard facts and it is aid to be objectives. Quantitative research provides numeric data of a particular topic being investigated by an organisation. For example, Cadbury Schweppes may want to know how many people are buying Cadbury Time Out Original and at what price. This type of information can give Cadbury Schweppes an overall idea of the size of the market, and the effects that various strategies can have within the market. This type of information can be collected in number of ways including face-to-face interviewing, by telephone, by post and self-completion questionnaires. Examples of quantitative information include: 100 units, 100,500 people, 98kg, 25%, 84kph and 23,600.
Cadbury Schweppes can use both qualitative and quantitative information as part of their market research because, they are closely linked together. Qualitative information provides the context within which, quantitative facts operate. For example, if Cadbury Schweppes use ‘What do you think about…?’ approach, it will give people the opportunity to offer a range of opinions, reasons, motivations and influencing factors. Both qualitative information and quantitative information can be collected first hand, which is known as primary research. Also, if they are already published outside the organisation, it is known as secondary research. Primary research Primary research involves collecting primary data from the public in the streets, or in the workplace. Primary research is often referred as field research. There are five main methods that can be used for collecting primary data. They are discussion with people, direct observation, questionnaires, surveys and sampling, and test marketing.