Q2.1 Evaluate different types of market research techniques
Market research is the process used by the organisations to identify the requirements and needs of the customers along with the current market trends. Market researchallows the organisations to efficiently identify, analyse, anticipate and satisfy the needs of the customers in the market. The process of market research allows the organisations to identify the opportunities and threats of a product in the current market situations (Burns, 2006).
There are two methodologies for the market research as mentioned below along with their advantages and disadvantages.
Quantitative market research – This type of market research method requires the organisation to collect numeric data about the market. These numeric data about the market reveals the size of the market, the sales growth possible for a product and demographics of the customers in the market. The examples of this type of market research are surveys, questionnaires, sales reports and financial trends. This type ofechnique includes a large number of participants (Malhotra, 2008).
Qualitative market research – This type of market research method generally collects views and opinions of the current and potential customers. This includes a small number of participants. The examples of such research methods are interviews, focus groups and in-depth discussions. The data collected in this method takes more time to be processed but reveals the needs of the customers in a better way.
Q2.2 Use sources of secondary data to achieve marketing research objectives
Secondary data – This is defined as the data that has been collected, processed, stored and managed by organisations, agencies or firms other than the one carrying out the market research. Secondary data are available in two forms such as quantitative and qualitative. The international shipping company can be benefited by the secondary data collected by several agencies and regulatory bodies. These secondary sources of data provide a lot of information to the international shipping company which are not provided by the government sources. The information from these secondary sources allow the shipping company to get a more insight view of the UK market.
Sources of secondary data– There are several sources of the secondary data for the given shipping company which can be classified into two major categories such as published and unpublished sources (Burns, 2006).
Published sources – Government publications and reports showing the total shipping activities, monetary resources transfer and profits in UK are the major sources of secondary data for the given shipping company.International regulatory bodies also publish timely reports regarding the shipping business in the UK along with some private firms and agencies.
Reports in newspapers, magazines and committees in UK also act as secondary sources of data for the shipping company (Malhotra, 2008).
Unpublished sources – There are several data that are processed, stored and managed by government, private firms, agencies and other regulatory bodies in the UK that are not published. These data are also available in the organisation itself. These unpublished data also act as secondary sources of data for the shipping company carrying the market research.
2.3 Assess the validity and reliability of market research findings
Limitations of market research findings
There are several limitations of the market research findings which pose questions regarding their validity and reliability. The marketing research process doesn’t replace the decision making process. It means that the market research process provides only suggestions for the business processes of manufacturing, marketing and promoting a product, not the solution. The accuracy of the market research findings is not perfect. The market research methods often consume large amount of time (Burns, 2006). The conclusions of the market research methods are not always dependable. The market research techniques are generally expensive. The market research findings don’t cover all the marketing challenges and issues.
The validity of a market research defines whether the research is measuring what it is expected to measure. The validity of a market research can be ensured by always keeping the goal of the research in mind, using the most reliable and accurate secondary sources of data and engaging the personnel who clearly understand the goal of the research.
The market research can be made reliable by communicating to the right individuals, using only customer language, avoiding artificial choices, using semantic scales and analysing the research data. By carrying out all the mentioned steps, we can ensure the reliability of the market research (Malhotra, 2008). The surveys to be done for a particular product of a company should be done in the language local to the geographic area of operation.
2.4 Propose a marketing research plan to obtain information in a given situation
Background – The Fresh Olive Company is a well-established olive oil manufacturer in the UK. The company is looking to launch a new product, an extra healthy olive oil product into the market.
Rationale– The rationale of the market research is to identify and analyse the needs of the customers in the market regarding olive oil and understand the opportunities and threats for the new product of The Fresh Olive Company in the market.
Objective – The objectives of the market research are to analyse the opportunities and threats to the new product, the usage of olive oil in the market and the competitors in the same industry.
Methodology – The exploratory section of objectives of the research require the qualitative information collected by the qualitative research methods including focus groups having light and heavy users of the olive oil. The quantitative data from the surveys and questionnaires suggest the total usage of the olive oil in the market (Burns, 2006).
Analysing the data – Statistical market research tools along with several sampling methods are used to analyse the data collected from primary and secondary sources (Malhotra, 2008).
Timeframe – The research should be completed in 20 weeks which have been divided properly for different activities. These activities also have overlapping weeks in some situations.
Budget – The budget allocated for qualitative research is £18,000 and for quantitative research is £20,000. The remaining activities have to be completed within £12,000.
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