Project about applications for smart city

DICE MODULE

Market Research

What is Market Research?

Market Research can be defined as:

“the process of gathering, analyzing and interpreting information about (1) a specific market, (2) a product or service to be offered for sale in that market, (3) about the past, present and potential customers for the product or service; (4) research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face”.

In other words, it is the process of gathering information which makes entrepreneurs more aware of how the people they hope to sell to would

react to your current/potential products and/or services.

Market research thus provides relevant data to help the entrepreneur solve challenges that a business will most likely face.

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What is Market Research? (cont.)

❖ It is an organised and systematic effort to gather information about customers or markets. It is a key component of any business strategy and provides information about market needs, market sizes, competitors and customers.

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❖ Market research allows you to identify threats and opportunities in the market place and provides the information on which you can make informed decisions. The more accurate the information - the better the decision. Market research therefore reduces the risk involved in making these decisions. It also reduces the risk of not being able to make decisions because you did not have the information at hand (for example, a change in the market that catches you by surprise)

Market research can be a primary factor in helping entrepreneurs to:

1. Understand customers and their preferences.

2. Identify opportunities to grow and increase profits.

3. Recognize and plan for industry and economic shifts.

4. Identify / Monitor competition in the market.

5. Mitigate risks in entrepreneurs business decisions.

Why Market Research is Important?

❖ To know better what you are going to do ❖ Better insight on target customer ❖ Customer behaviour pattern ❖ Analysis on competitor ❖ Expedite smooth new product introduction ❖ Reduce risk and loss significantly

❖ Market research is often conducted to address one or more of the “4Ps” of marketing (product, price, place,

and promotion).

❖ The purpose of market research should be clearly defined prior to conducting the research.

❖ This means the problem that needs to be solved and the information necessary to find the solution should

be outlined before undertaking any research

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Conducting Market Research

Market Research Data

1. Primary Data: (Quantitative or Qualitative) This is the research collected by the entrepreneur himself. (e.g. via questionnaires to obtain information about customer buying preferences).

2. Secondary Data: This type of research is already compiled and organized. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.

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Primary Data Methods

Conducting primary market research can be broken down into two methods: 1. Quantitative: the collection of numerical data often resulting in statistical analysis to understand trends in the data. 2. Qualitative: provides reasoning for consumer actions, opinions, wants and needs; it helps you understand why a consumer has acted and purchased in a certain way.

HINT: Based on your needs, sometimes in order to gain a full understanding of a business environment, the marketplace & the consumers within it, it is wise

to conduct both.

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Secondary Data Sources

Secondary market research data can include: 1. Public Sources (e.g., Sources available in government departments, business departments of public libraries, etc.). 2. Commercial Sources (e.g., valuable, but usually, involve cost factors such as subscription fees. Sources include research and trade associations, banks and other financial institutions, and publicly traded corporations). 3. Educational Sources (e.g., educational institutions that conduct research in various ways, ranging from faculty-based projects, theses, and assignments).

Sources of secondary research include: - Libraries - Internet search engines - Trade or industry

organisations - Research results published in the media, etc.

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Surveys

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❖ Surveys are perhaps the most common method of primary data collection.

❖ There are a variety of different survey collection methods, including mail surveys, telephone surveys,

face-to-face (in-person) interviews, and Internet

surveys.

❖ Less formal surveys methods may also include observation and informal interviews.

❖ The choice of which survey method to use depends on many factors, including the number of respondents the

surveyor desires, the time frame in which the data must

be collected, the characteristics of the population to be

surveyed, and, of course, the budget.

Surveys, of which there are many different types, are one of the most popular methods

of collecting primary data. The type of survey used and the question formats on the

survey should take into consideration the type of information the surveyor is looking to

collect, the population of interest, and the skills of the surveyor or survey team.

Survey Strategies

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❖ Multiple Choice: The multiple choice format poses a question to the survey respondents and then provides them with a list of responses to choose from. The multiple choice format can offer the respondent three or more responses, or just two: yes or no (this question format is known as dichotomous choice).

Survey Strategies

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❖ Rating Scales: Rating scales allow survey respondents to indicate their level of agreement with a statement, or to rate the level of importance of a specific feature of a product or service. Benefits of rating scales are that they are relatively straightforward for respondents to understand and are less difficult to analyze than some of the other question formats. A drawback to rating scales is that they can only be used for certain types of questions.

Open-Ended Questions

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❖ Open-ended questions: An open-ended question poses a question to the respondent and asks him/her to write out his/her response. While open-ended questions can provide a lot of information, they are problematic enough that many researchers try to avoid them. To begin with, they require more effort on the part of the respondent, and so may lead the respondent to skip the question or quit the survey entirely. The open-ended nature also leaves the interpretation of the question up to the respondent, so the responses may not be entirely what the surveyor was looking for.

Video

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https://www.youtube.com/watch?v=CCKHH9jjS0s

Thank you

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