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UNIT 3 Introduction to marketing Task 3.3
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UNIT 3 Introduction to marketing Task 3.3-P2,P3,P4,M2,D2 this document was graded a distinction*
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Task 3.3MKOPA’S MARKET RESEARCH AND MARKETING PLANNING
Market research is the process of gathering, analysing and interpreting information about a
market, a product or service that a business plans to offer for sale. This information includes
data on past, current and future customers of the business and its products. For example M-
kopa which deals in solar products is interest in knowing what their consumers need and
don’t have access to such as lack of electricity would mean that they do not have radios or
TVs in their houses. Other issues that M-kopa might be interested in knowing includes
whether their customers can afford to buy solar products as well as information on any
other companies that are selling the same products and their prices.
There are two main types of market research information; these can either be qualitative or
quantitative.
Qualitative market research -
Qualitative market research involves getting information about costumers thought
and feelings about a product and how that affects their purchasing decisions. This
includes looking into what motivates them to make the purchase as well as their
feelings or opinion towards the use of the products. An example may be for M-kopa
to understand why their consumers might want to purchase a TV set first before
getting solar lights in their homes and how they feel about the products once they
have made the purchase.
Quantitative market research -
Quantitative market research is the process of gathering numerical data that can be
analysed using various statistical analysis methods in order to better understand
information on how a product is performing in the market. This method is used
because it makes it possible to analyse trends and make a comparisons on
information for different people. For example M-kopa might be interested in
knowing how much they need to charge for product as well as how many solar light
bulbs each house might need. In as case like this, they would ask several consumers
the same question, so that they can analyse and understand how to develop solar
packages.
In order for M-kopa to obtain their market research information they must use either
primary or secondary sources of information. Primary market research information is
research that is gathered by the company directly from the market or consumers while
Secondary market information involves the collection of already existing information or data
from reports, newspapers, business magazines, government reports and online websites. It
is generally much easier to get secondary information because these are usually free and
easily accessible while primary data collection involves actual interviews with consumers.
How M-kopa used market research in developing new products
, In order for M-kope to develop its market plans, it uses both primary and secondary market
research in order to collect both qualitative and quantitative data. An example is when M-
kopa wanted to introduce additional products to its customers they conducted telephone
interviews with 500 existing customers. They develop a questionnaire that included both
qualitative and quantitative information. This telephone interview gave them primary data
information. They then realized that 80% of their customers were farmers. Using this
information M-Kopa has now developed a new product that includes seeds fro crops and
fertilizer that farmers can buy using their mobile phone. The new product was developed
because the information that they analysed showed that the farmers can afford to pay for
he seeds and fertilizer.
Limitations of Market Research
There are advantages and disadvantages of market research some of the key limitations
include the following:
1. Uncontrollable Factors
Although M-kopa conducts market research and gets information it needs to
develop new products, the market might change due to other factors that Mkopa
cannot control, an example is when the government unexpectedly introduces a new
tax in TV sets or solar equipment and as a result makes their products more
expensive.
2. Time Gap relevant
Because of the log time it takes to develop good market research, by the time the
company has developed it marketing plan, the situation in the market might have
changed. An example is if M-kopa did not realize that another company was in the
process of importing cheaper solar product and by the time M-kopa is ready to sell, it
finds that the market is flooded with cheaper solar equipment.
3. High Cost
Conducting marketing research especially when using the primary data collection
method is very expensive because the business must send out people to interview
their customers. Some time this may require travelling as well as paying for their
meals and accommodation especially if they have to travel to many parts of the
country. Bigger organizations such as Safaricom might need permanent employees
or a market research department in order to conduct regular market research and
understand their customers needs. In some cases businesses need to high market
research companies to conduct their research and this is still very expense.
5. Trust and Accuracy
It is important that the people providing market information as trustworthy and
provide accurate information. This might mean that the company spends more time
developing a good questionnaire so that the correct information is gathered. In some
cases personal values and attitudes, might affect the response that is given and in
case the questioners are not well developed, then the information received might
misguide the marketing plan of the company.
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