Q.
Marketing research is essential to deliver accurate information for an effective marketing strategy. Discuss the various processes involved in conducting a market research for a proposed vacant development site.
(25 marks, 2011 Q6)
A.
Various processes in market research for a new development encompasses, as called "The Marketing Research Process".
- Defining the problem and research objectives
- Developing research plan
- Implementing research plan - collecting and analyzing data
- Interpreting and reporting the results.
1. Defining the problem and research objectives
At this stage, the pertinent question is to establish the need to conduct a research as any form of research is time consuming and very costly if primary data is required from carrying out field research. This stage really scrutinizes the fundamental needs of a research. Defining its need would make the subsequent stages easier and more objective, avoiding wastage and augmenting focus. It would ultimately improve outcome.
2. Developing research plan
With the objective of research clear and firm, a plan can be drawn up as how to approach the research. This is a time line, a map of how to reach the target group to obtain the data. In secondary research, this plan outlines the scope of the research, e.g. from where the data can be collected and limit to how wide the scope of the data. This is important as we cannot have unlimited scope as time is a scarce resource. Gathering information too remote or too insignificant may not help in the analysis of data. In scarcity of time, information like 'which school the prospect attended during tertiary education' is not important. A 'tertiary education' is more than enough to register his 'income category'. Or, in fact, an income range would be more appropriate.
3. Implementing research plan - collecting and analyzing data
This is the stage when most activities are conducted in the field. Therefore, this is also the most labour intensive stage, and also most costly. Man power and equipment would be required to go down to the field. In telephone survey, telephone bills would incur a major cost. In face-to-face interview, employee or survey company would demand a fee. Moreover, this stage has certain risk of error as deployment of survey question (if verbal) may have different interpretations. A simple questionnaire may have different outcome by different respondents. Hence, analyzing the data can be a tedious task.
4. Interpreting and reporting the results
Amidst, the outcome of the collected data require careful analysis. A certain consensus is required for coming out with the final conclusion taking into consideration those assumptions in the survey. This is a different task compared to earlier processes because what the management is interested in is not the fine details of the research or its methodology. Although the management would need certain reassurance that the research had been carried out in accordance to the agreed plans, the management wants an answer to the research problem.
Interpreting the results can be difficult as different perspective of the issue may be interpreted differently. For example, a low preference to buying single storey house may be interpreted as 'space constraint' or 'income limitation' with respect to 'family size' or 'income level'. Even among cost factor, 'income level' can be a subjective matter in different demographic group - a jobless would view income unattainable compared to a executive manager in a multinational firm.
In situation which there is no direct answer(s) to the problem, the researcher has to come out with the nearest possible answer - in sort of postulation - hence, the assumptions. Thereafter, the management would want to have recommendation from the research panel, in resolving the problem at hand. At this end, the research marketing person would have to balance the outcome of the data analysis with his marketing experience and design a solution best fitted for the problem.
Bear in mind that researcher who is good at figure crunching may not be a good marketing person to design a marketing solution.
Lastly, the outcome of the research can be a light house for future decisions. As the company moves on to new territories, the research finding can benefit future projects.
Ref:
Own account after reading Abdul Hamid, Mar Iman. 2002. An Introduction to Property Marketing. Rangkaian Pelangi Sdn Bhd. Page 332-340.