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1 Market Research It is essential that market research is undertaken to establish there is a need for childcare within a specified area and have knowledge of the local community that a business wishes to be located in. A Market Needs Analysis is a business-planning tool used to document evidence of the demand for a project. Performing a Market Needs Analysis enables the business to determine the services that are required to meet the needs of the markets, and to anticipate and prepare for changing future demands. The results can reveal risks and opportunities, service user habits, challenges and potential adoption rates. It can help to: Reduce financial risk Correctly position the service for optimum uptake Identify the demographic make-up of the target market Identify optimum service offering and organisation positioning Measure the effectiveness of marketing and advertising messages Identify new opportunities for service development The type of information collected from market research can be split into two main categories: Quantitative Research Qualitative Research Quantitative Research Involves collection of data that is quantifiable and is therefore not open to thorough levels of interpretation. Can be collected through Primary Research (e.g. questionnaires) or Secondary Research (e.g. use of published data). Allows larger-scale surveys/research and statistically rigorous analysis. Success depends on sample being wide-reaching enough to be able generalise. Examples: Telephone interviews Face-to-face interviews Mail questionnaires Internet/Online Surveys Secondary data sources (e.g. Childcare Sufficiency Assessment) generally lower cost but must consider the relevance of the data and how/why it was collected
2 Qualitative Research Involves the collection of data that is open to interpretation, e.g. people s opinions. Useful for investigating attitudes, beliefs and intentions (as oppose to probability-based samples). Usually based on very small-scale samples and therefore cannot be generalised in numerical terms. Results often subjective but reflect complexity that underlies consumer decision making. Helps understand what people mean (as oppose to only what they say). Examples: Survey research/questionnaires Focus groups In-depth interviews Observational techniques Experimentation The way the information is collected can also be categorised into Primary Research and Secondary Research. Primary Market Research can be carried out through: focus groups telephone surveys face-to-face interviews postal questionnaires internet/online surveys observational techniques experimentation Secondary data sources: published data
3 Research Methods Personal Interviews: Face-to-face meeting between interviewer and respondent. Can take place at a home, place of work, public place (i.e. street/shopping centre) etc. Can be in-depth and unstructured exploring a number of relevant issues from an attitudinal or motivational point of view (this method can be costly) Or can be structured and less time-consuming but with less flexibility to explore issues. Group Interviews/Focus Groups: Provides a useful insight into underlying attitudes and behaviours. Normally involves between six to eight respondents considered representative of the target group examined. Role of interviewer to introduce topics, encourage and clarify responses and generally guide proceedings. Individuals can respond to direct questions or in general discussion. Group interviews useful when budgets are limited and could be a useful alternative to costly field techniques. Telephone Interviews: Used to reach a large number of respondents quickly and directly. More difficult to ignore than other types of research. Complexity of information can be limited due to maximum attention spans (probably no longer than 10 minutes). Range of applications wide but telephone surveys useful for usage surveys where market size and trends can be assessed. Postal Surveys: Involves sending a questionnaire through the post for self-completion by the respondent. Can also be handed out to people to complete and send back at respondents own convenience. Has the advantage of wide coverage but lacks control of responses. Response rates can be less than 10% in many surveys but tend to be higher if they are more pertinent to the respondent. The lower the response rate, the more costly the survey. Incentives can be often encourage a higher response rate.
4 Internet Research: With a large internet usage, it is easier to achieve representative samples Online techniques include online focus groups, questionnaires, pop-up surveys, extended groups and increasingly through the use of social networking sites. Relatively inexpensive. Fast turnaround and automated data collection. Can be difficult to identify target audience. Reliant on respondent IT skills and could be hindered by technical problems. Observational Research: Observation of particular groups (e.g. potential users, children, members of the public) to understand aspects of their behaviour. Provides an opportunity to observe how a service is used first hand. Can also include mystery shopping to gain an idea about the levels of customer service. Sampling: Accurate representative samples of the whole population will should provide enough confidence to generalise. The following are stages in the sampling process: Population Definition should relate to the overall market research objectives Sampling Frame means of access to population, i.e. a list from which names can be drawn Sampling Unit Individuals whom a response is required from Sampling Method Selection Selecting the sample method Sample Size Making sure the sample is of a suitable size
5 Questionnaires Questionnaire Design: Must be closely linked with overall purpose of research Must retain of interest of respondent and not be too long or complex Questions either Open (e.g. what factors are important to you choosing childcare) or closed (yes or no questions or multiple-choice from a list). Always important to ensure that the wording of questions is clear and that questions are fully understood by the respondent. Also wording should be as specific as possible. Leading questions can tempt respondents in a particular direction as oppose to making up their own mind. This should be avoided if possible. Objectives of a Questionnaire: To suit nature of the target population To suit the research methods To suit the research objectives To collect the right kind of data To aid data analysis To minimise error bias To encourage accurate and full responses
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