These notes are merely a starting point. They do not aim to be definitive. The questions are not exhaustive nor arranged in such a way as to offer a definitive instrument for market research. They are presented as a useful jumping off point.

Purpose of Market Research?

1. define and evaluate your place in the existing market.
2. reveal profit-oriented opportunities in the merchandise/service range and quality offered
3. provide information regarding future trends in demand
4. to identify customer needs and requirements and what they think of you and your products/services
5. discover how you may delight your customers more
6. provide an evaluation of advertising and promotional strategies and their content
7. reveal opportunities for business development and improved competitiveness
   
   

Scope for Desk and Field Research

What is Desk Research?

Research done within the organisation using its own records and information (sales, customers, products) or documentary and statistical information produced elsewhere.

What is Field Research?

Research done outside the company. Getting information directly from customers by talking to them, obtaining their views and reactions. Obtaining data on customer behaviour by observation and testing. Securing information from research into competitors' products and services or others who have insight into the market e.g. suppliers, trade associations.

Market Research/Customer Survey Questions

• Who is the customer? - Age, sex, social grouping etc
• What is the market? - What the customer wants to buy.
• How big is the market in volume and financial terms?
• How much is the customer able or willing to spend?
• What competition exists?
• Who and where are the competitors for your trade?
• What is your place in the market? How are you positioned in the league?
• What do customers think of you?
• How much of customer's available money are you getting or could you get?

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• How many potential customers - for your product/service - are there in your catchment area?

  Age groupings?

  Sex?

  Social background/Life style?

  Occupations?

  Spending Power?

  Buying habits?

  their Requirements?

• What is your market? Where is it?
• How big is the total expenditure in your area?
• What is your market share?
• What is the behaviour of your share? Is it declining, stable, rising?
• What is your future potential in this market?

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  What is the nature of your competition?

• What constitutes the competition? Who is it? What is it?
  1. traders with similar merchandise
  2. Other types of competition

• Where is the competition? Local, remote? Where?
• How large a share of the market have your competitors got?
• How is your competitors share of the market behaving relative to your own?
• Are there any changes in the competition?
• In what way does the competition perform better than you?
  • New shops
  • Shopping centres
  • TV, Catalogue, on-line/Internet shopping
  • New items or services available?

Example: THE SMALL TOWN LEISURE CENTRE

market research for a small town leisure centre might cover the following

• Data/measurements from the centre itself
  • size
  • range of facilities and their capacity and comparisons?
  • quality of our programmes and comparisons?
  • £ turnover by programme/service area
  • Pricing structure and comparisons
  • Average expenditure by family of 3 on merchandise sold by the Centre (from family expenditure survey)?
  • Proportion of Total market - given competitors in the town e.g. if there are 14000 households spending £10 per week on leisure centre type activities, how much of the total town spend are we taking?
    
    

Questions to be asked:

• Where else are people going?
• Why don't they come here?
• Why are they going elsewhere?
• What can be done about it?
• To what extent would additions to the merchandise range be likely to increase sales?
  
  

What are our local sources of information?

• Sales tickets/total sales by
  • dept sales
  • merchandise group
  • sales assistant
  • session
• Unit sales
• Average transaction value
• Cash/Visa
• Catering
• Customer addresses - nb data protection requirements
• Invoices - detailers of suppliers
• Requests for facilities not stocked
• Sales assistant observations/informal information
• Exchanges/returns/credits
• Customer Quality Survey returns
• Maps/Catchment area
• Town plans/Alterations to houses, roads, parking
• Transport - Peak shopping times. Access. Car parking
• Published accounts and Information on competitors
• Electoral roll - Who customers are and where they live.

• Competitors
  Ranges, proceses, policies, volume, profitability

Sales Forecasting

UNCONTROLLABLES.

• Local economic situation
• Trends and fashions
• Competition
• Supply of services
  
  

CONTROLLABLES
(influencing profitability of sales forecast)

Stock held
• Rate of stock turn
• Leakage/Shrinkage
• Staff numbers and costs
• Sales promotion cost
• Other expenses.