Not all companies can afford the services of market research agencies. Indeed, there are many occasions when market
intelligence is required but the business decision does not justify a large and extensive research project. In these cases
some desk research could be carried out or a small number of exploratory interviews may suffice (see Chapter 4). It does
not matter if the research project is a DIY job or project that is to be outsourced, it is good practise to prepare a market
research brief.
The brief is the statement that sets out the background to the research and what objectives it is hoped will be met. It is
helpful to write down (perhaps on one or two sides of paper) answers to the following:
- Why do this market research? What action will be taken when the research is completed?
This is arguably the most important part of the brief as it will allow the researcher to work out all the other things that are
required such as the specific information that will be useful (see item 5 below) - What has caused this problem or led to this opportunity?
Here it is helpful to describe the history that has led up to the research. A description of the product,/service is important
and so too it would be good to talk about the way that the market is changing - What is known about the area of research already? It can be helpful to the market researcher to be aware of what is
already known and then they can build on it and not waste money or time re-inventing it. Also, knowledge on the
structure and behaviour of a market allows the researcher to be more precise in their proposals. For example, most
sponsors of research have carried out some desk research or have internal reports that provide views of the market. This
could be made available to the researchers who are planning a research programme if they need a deeper
understanding of the market. - Target groups for the research? Survey research has to be targeted at someone. The target for interviews need to be
scoped precisely. If they are householders, should they be people who have bought a product or who are thinking of
buying a product? Should they be buyers or specifiers? Should they be multiple purchasers or not? When the various
target groups are listed there is a temptation to say – “yes, all of these” but remember that the greater the scope of the
project the more it will cost and (usually) the longer it will take. - What specific information is needed from the research? (e.g. market size, trends, buying behaviour, customer needs,
segmentation)
The person wanting the market research has almost certainly got some key information gaps that need filling. Listing
them will help the professional market researchers work out if they are the right ones required for the decision and
action that is planned. The professional market researchers can be expected to flesh out the information objectives with
their own suggestions as they know better than anyone what can and can’t be achieved by market research. - What is the proposed budget? Seldom are there unlimited funds for research and more often there are very limited
funds. In this case it is helpful to know what the budget is, for otherwise the researchers could design a full and
comprehensive plan that delivers detail and accuracy to meet the action and information requirements, only to be sent
back to the drawing board because there is only $15,000 (or whatever). - Are there any initial ideas for the research method? A client who is sponsoring a research project may well have a
method in mind. Now is also the time to say if there is distrust of telephone interviews and a preference for face to face
or if focus groups would be well received. - Are there any reporting requirements?
Increasingly the default method of reporting in the market research industry is a set of presentation slides which doubles
as the presentation and the report. Researchers have no problem writing a narrative report but they would typically have
to charge an extra three or four days of their time for its preparation – incurring a cost of a few thousand pounds. 9.
When are the findings required? Most research has a demanding timetable and sometimes this can be punishing. The
dates by which the research is required should be specified so that even if they are really difficult, the research supplier
can try to be accommodating, perhaps with an interim debrief or regular reporting sessions. The research brief should
be a dialogue and even the most thorough brief covering all the issues listed will generate some additional questions
from the researchers. This is healthy and to be expected as it indicates that the problem is being thought through.
Someone who is unsure about methods or budgets for a research project may wish to talk to a market research
agency before they write the brief to find out what is possible and how much it might cost.
Perhaps you’ve decided to embark on a marketing research project to answer a specific
question; or maybe you’re trying to gain focus on an incomplete picture of the market, and
you’re unsure of next steps. Make time for a critical first step in the consumer research process
by developing solid research objectives to underpin the project, and avoid wasting capital by
gathering incomplete data or information that answers the wrong question12. - Answer four questions to provide a foundation or framework for understanding the problem:
Who is your key customer, the primary target audience you derive the majority of your income
from? Be sure to exclude audiences as well as include; the goal is to narrow your focus. What
relevant behaviour do you want to influence among this key group? Options include initial trial,
increased purchase, repeat business, improved relations, loyalty or even better word of mouth
to their associates. In what context does this desired behaviour occur? This describes the market
environment, and depends on your industry–like business to consumer vs. business to
business, or retail versus wholesale. What competitive alternatives does the key customer
choose from? Note that this includes not making a choice at all, like putting off a purchase. - Review information already in hand, to ascertain what you may already know or possess
about the products you market, the customers who purchase them, the competitors they have
to choose from and the industry in which you operate. Look through company reports, sales
data, research and development updates, customer feedback forms and industry trade
12 Source: Chron, as at http://smallbusiness.chron.com/develop-research-objectives-consumerresearch-
process-1716.html, as on 4th September, 2017.
publications. Determine what you already know or feel confident about, and what holes you
think need to be filled to complete the picture. - Decide on the nature of the marketing research project. If your information review turned up
little or no data, you may need an exploratory survey, to collect initial data to help form
assumptions to test later. Or you may have a partial picture, and you need a descriptive study
to better illustrate specifics, including the potential growth for a new product or the
demographic profile of a typical purchaser of a particular item. If you have a fairly well
developed picture and are considering next steps or a final decision, you may be ready to test
cause-and-effect or if-then, and need to conduct a causal–also termed casual–project. - Brainstorm on specific objectives for the project, listing as many objectives as you can that
would cover the topic under consideration. For example, if the problem is a loss of market
share, objectives may include overall industry trends, basic demographics of general consumers
in the industry, attitudes toward and usage of brands, satisfaction levels of customers, and
product improvement or new product development. - Write out the actual objective. Specify one action verb and one type of result you need from
the consumer research project. Verb examples include identify, define, evaluate, select or test.
Result types include market opportunities, product requirements, competitive alternatives,
customer preferences, or consumer usage. So two example sentences might read: Identify user
preferences among our current product offerings. Evaluate the persuasiveness of alternative
advertising message among prospective customers.
Consult with relevant personnel on draft research objectives to ensure
relevant and useful information is gathered
Once we have analysed our data and information to determine our research needs we need to
involve those personnel who:
Have an interest in the research and its outcomes
Who will be impacted by the research and outcomes
Who have a responsibility to manage the business
Who are involved in the process of running the business, setting goals and achieving the
overall direction the business wants to achieve
In larger organisations there may be entire departments dedicated to this process. In smaller
businesses there will be fewer people involved but their input is just as important. Who would be
relevant in your organisation?
When considering research needs and the personnel to assist with the process. It is vital to seek
advice regarding the legal and ethical responsibilities organisations have in terms of gathering
information for market research. As with all legislation there are penalties for noncompliance and it
is important for business people to be aware of their legal and ethical responsibilities.
Your process and research problem (question to be answered) will have identified the relevant
personnel or stakeholders; it will have identified the questions to be answered in order to meet the
objectives set by the organisation. Your draft research objectives will be defined based on these
factors. Now gathering relevant and useful information must be determined.
If this is not done correctly resources will be wasted and the outcome not successful.
The relevant personnel usually involve the marketing team and support team (administration,
finance, customer service, etc.). Consultation involves developing excellent communication skills
with the people who are identified as stakeholders as well as those who can provide the research
(information) you desire. Consider the importance of being able to communicate effectively to
gain the results you need: Interpersonal skills Life skills we use every day to communicate and
interact with other people, individually and in groups. People who have worked on developing
strong interpersonal skills are usually more successful both professionally and personally. Examples
of good interpersonal skills include:
Questioning to clarify details that pertain to the process
Listening, summarise and repeat to be sure of your information
Verbal communication: Clarity of speech, remaining calm and focused, being polite and following
basic rules of etiquette will aid effective verbal communication. The words we use as well as the
tone of voice.
Non-verbal communication: When we communicate, non-verbal cues can be as important, or in
some cases even more important, than what we say. Look at body language and body
movements; posture; eye contact; proxemics (closeness and personal space). Listening skills:
Listening is the ability to accurately receive and interpret messages in the communication process.
Listening is not the same as hearing. Hearing refers to the sounds you hear, listening requires
more than that: it requires focus. Pay attention to the story and how it is told. If you are talking you
cannot be listening! Reflecting: Even if you have excellent listening skills the only person who can
tell you if you have understood correctly or not is the speaker. Reflect on the message and clarify
with the speaker if you have understood them correctly. Ask them if what you have heard is what
they have said. Clarifying: This involves offering back to the speaker the essential meaning, as
understood by the listener, of what they have just said. Checking for understanding will avoid areas
of confusion and misunderstanding. Think of the number of times you have misunderstood, not
asked for clarification and then gone off on a tangent. Your approach to others will determine your
success levels in gaining the information.
Communication is vital in this process. You need to understand who to communicate with, how
often and in what way. What do they need to know? What is important to share and what is the
most convenient method of sharing this important information. You may choose to use a
communication matrix like this one below. It helps coordinate the approach for all your
stakeholders and lets everyone else in your team know where you are up to and who needs what
and when!
Review and finalise draft objectives in light of scoping parameters
Remember, your primary responsibility is to improve the business (or to meet the objectives as
defined by the organisation) therefore your research objectives must have a clear link to this
responsibility.
Do your objectives for market research fit with the resources, the needs of the organisation and
the definition of the problem (or question you need the answer to)?
Discussion should involve all relevant personnel, including persons experienced in the research
methods you intend to use. The knowledge and information will help ensure the research
undertaken does what you need it to.
Identify types of data required to inform objectives
Market research is primarily analysing consumer behaviour in order to discover who is buying,
what they are buying, where they are buying it, and when people buy products or services and
then asking the question why are they buying it? Market research is all about finding out what you
can do to entice customers to buy your product or service13.
5 Steps To The Consumer Purchase Decision Process
There are five basic steps that the customer goes through when deciding to buy a product or
service. As a marketer you need to be very aware of each of these steps in order to be able to
design a marketing plan that will reach to the heart of the customer’s needs. Understanding each
of these steps will help you to reach a common balance with the customer and entice them to buy
your product.
13 Source: Tripod, as at http://mbaed.tripod.com/marketing101/id10.html, as on 4th September, 2017.
The five-step process that a consumer goes through when contemplating a purchase is known as
the purchase decision process. Normally this process involves the following five steps but there
are those times when a consumer may skip one of the steps or combine them depending on how
involved with the purchase they are. - Problem recognition – You recognize the need to buy. The first step in the buying
process is when you the consumer sees what you have and then what you want or need
and then decide to buy - Seeking out information – After recognizing the need to buy, you then gather
information about what product or service will satisfy that need. - Assessing the value of the purchase – Information gathering leads to an assessment of
how a particular product or service will meet your needs. - Decision to make the purchase – Once you have recognized your need to buy a
product or service, have gathered all the information and assessed the value of purchasing
a particular product or service you then make the purchase. - Post purchase elation or dissatisfaction – After you have made the purchase you then
again must access the value of the purchase. Did it meet your needs or was it just short of
the mark.
The more you understand the decision making process of the consumer the more you will be able
target your marketing campaign to the heart of the customer’s needs at any point in the decision
making process you will be able to better be able make the cu
6 Psychological Influences that Affect Consumer Behavior - Motivations and Personality
An integral but often overlooked part of the customer’s decision-making process is the
psychological makeup of each customer. Every person that buys from you or purchases your
service has a different motivation for doing what they do and a different personality, which is their
consistent and predictable behavior. Personality can be a predictor of what a person buys
because personality is one the main reasons a person develop brand loyalty.
A person will buy a product and have a pleasant experience with the product, which equates to
satisfaction on their part. Because they were satisfied once they will continue to buy that same
product and eventually the purchase of that product is integrated into their personality. - Perception
Motivation and personality are also the driving force behind a person’s perception of how things
work. Our perception helps us be selective about the things that we want to buy, because we can
perceive the value of the purchase and how it will fit into our own part of this world. One person
may perceive a Mercedes to be a necessity to his lifestyle another may see it as showing off. - Perceived Risk
Our personalities, which are an accumulation of our beliefs and ideas about the world we live in,
also help us to see the perceived risk and negative consequences of purchasing something. There
may some fear of a financial burden or some fear of physical harm associated with the purchase.
For instance a mother may fear for her son because he is thinking about purchasing a motorcycle. - Learning
Another part of our psychological makeup, which is closely tied with motivation and personality, is
learning. We learn because we want to, need to or sometimes even by accident, but each day of
our life we learn. There are basically two types of learning: behavioural and cognitive.
Behavioural learning starts as soon as we are born and is the process of learning behaviours and
attitudes from those people we consider important to us or with whom we interact the most.
Cognitive learning is the process by which we learn through, thinking, reasoning and mental
problem solving.
Learning form others around us, from our experiences and from information we have gathered
helps us to make decision about what we buy and don’t buy. - Attitude, Beliefs and Values
An attitude or predisposed way we have learned to respond in a favourable or unfavourable
manner to the things around us has a great impact on what a consumer buys. Attitudes are
shaped by a consumer’s beliefs and values. For instance a person that comes from a family whose
father bought only Ford products may have the belief that nothing compares to a Ford.
Another person who comes from a Christian home, because of their beliefs may shy away from
certain provocative or unwholesome products. A marketer must be aware of the attitudes, beliefs
and values of their target group or they will totally miss the mark and lose sales of their product or
service. In fact it is up to the marketer to change the attitude of the person by changing their
beliefs about a product.
Marketing is all about psychology and getting into the minds of customer’s. The successful
marketer will learn to understand their target audience and gear their advertising to the customer’s
needs and the desire to have those needs fulfilled.
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