Primary data refers to
information gathered specifically to meet your research objectives
and to answer questions pertaining to the defined problem. Here there
are two types of research – quantitative and qualitative.
Quantitative research involves the use of structured questions where
the responses are predetermined and a large number of responses are involved.
The purpose of this research is very specific and it is usually used
when precise information is needed.
For example, if you are looking to purchase a fast food outlet in a geographic
location where there are already a number of competitors, a questionnaire
could be distributed which would attempt to establish whether the actual
food type that you have to offer is appealing to potential customers
(particularly people who live in the area) and whether they would actually
then be inspired to purchase from your takeaway outlet instead of the
competitors.
Qualitative research involves collecting, analysing, and interpreting
data by observing what people do and say. Qualitative research is non-structured
and can provide insights that are difficult to obtain from a structured
survey. Tools that can be used for this area of research include focus
groups and the use of ‘observatory research’. For instance,
if you are planning to purchase a retail furniture franchise and are
wondering what items to place in your store you could perform some simple
observatory research by visiting other retail furniture stores and having
a look at which feature items people in the store are attracted to. This
simple tool is also a good way to get a firsthand understanding of the
needs of people living in a certain geographic area (in terms of living
habits/needs).
4. DESIGN DATA COLLECTION
FORMS
There are various ways to collect data for market research. One of the
most commonly used especially when conducting quantitative research)
is the questionnaire.
When designing a questionnaire you need to follow a few simple steps:
› determine the required information and from
whom it should be sought
› determine the
interview method and length of questionnaire
› prepare the
draft questionnaire (including questions)
› pre-test and
revise the questionnaire.
Of course, each questionnaire should be tailored to the individual needs
of the franchise in question and the industry that is being looked at.
5. SAMPLE PLAN AND SIZE
You need to establish who you are researching (e.g. current customers,
males/females, people in a particular age group etc.) and how many
people should be in included in the research.
As in designing the questionnaire, one point that you need to keep in
mind when choosing a sample is the type of industry that the franchise
belongs to. Some industries are easier to access in terms of customer
research than others. For example people who purchases cookies from a
cookie shop may be easier to find and get some feedback from than people
who are customers of a franchised exporting business. This factor needs
to be taken into account in terms of reaching an ideal sample size (which
has to be substantial enough to get a clear picture of the situation)
and making it easy for you to reach potential customers (which may mean
it may take a little longer than you thought to complete the research
process).
6. CONDUCT YOUR RESEARCH
AND COLLECT DATA
Some points to consider when collecting market research data are:
› the amount of time taken to get back questionnaires – different
survey methods produce varying response times
› errors which
may have occurred during the process
of conducting the research (e.g. interviewing
people who intentionally give wrong answers
etc.) and errors which may have occurred
when respondents answered a questionnaire
(e.g. ticking the wrong box).
7. ANALYSING DATA AND PRESENTING
FINAL REPORT
Analysing the data will finally enable a franchisee to formulate answers
to the market research problem and therefore meet the research objectives.
It is crucial that the results obtained from the market research be translated
into a practical marketing strategy or else the whole process will be
just a waste of time. There are number of practical outcomes that can
result from the research, some of which are:
a) You may decide that the market that you researched
is not viable (or it is not profitable enough) for you to purchase
and open a new franchise in a particular area.
b) You may find that although the market is viable, you will have to
put considerable work into meeting government regulations (for example)
or other requirements.
c) You may develop an understanding of how your competitors operate
which will give you an insight into how you need to do things differently
from them.
d) You may find that a particular demographic group has an unmet need,
which you could successfully cater to in your new franchise.
This could mean slightly
altering a certain aspect of the franchise in order to become successful
while still remaining within the main operational boundaries of
the franchise. For example, in response to the demographics of
their particular area, a number of take away outlets have introduced
certain cultural practices in the way that they serve their food
in order to meet the religious requirements of potential customers,
and this move has been a great success for the companies in question.
Market research is a key component of the whole planning process when
looking at purchasing a franchise. It will help you to find out whether
the franchise is likely to be successful and, if so, which factors will
be most likely to enable it to succeed.
Francesco Gilio is director
of Central Marketforce, a strategic marketing consultancy which
specialises in applying today’s business and social trends
for an organisation’s marketing strategy. For a free one
hour consultation please contact Francesco on (02) 9282 6418
or visit < www.centralmarketforce.com >.
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